You have a lot of options when it comes to marketing in today’s technological world. From paid ads to social media marketing, choosing the best strategies for your business can be overwhelming.
Collecting and reviewing data on your current and target customers can help you choose the marketing strategies likely to produce the best results. We have compiled a few reasons why data-driven marketing is key to business success.
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What Is Data-Driven Marketing?
Data-driven marketing is a strategy that involves choosing advertising methods based on collected analytics. This might include the use of demographics, shopper interests, and location.
Data-driven marketing differs from traditional marketing in that you make advertising decisions based on the data in front of you rather than through trial and error.
The ability to collect analytics and data is one of the biggest benefits of digital marketing over traditional marketing. Marketing using traditional techniques, like print ads or billboards, can be very difficult to track success. Digital marketing allows you to review data to measure success better. Data-driven marketing hyper focuses on the data available, helping you make advertising decisions based on facts.
Now you know how digital marketing helps you get insight and make better decisions. So, what are you waiting for to hire a digital marketing agency today?
Benefits of Data-Driven Marketing
The most successful marketing campaigns are carefully strategized using relevant market analytics. Data-driven marketing offers the following benefits:
Cost-Effective Marketing Budget
You can stretch your budget further by using analytics to guide your marketing strategies and decisions. Instead of wasting money presenting your ads to people unlikely to frequent your business, you can put them in front of customers who match your target market. This can help increase website traffic and conversions.
You can also justify your results with data-driven marketing. Whether you need to show proof of results to a lender or provide evidence for increasing your marketing budget, analytics is necessary.
Local-Based Reach
Data-driven marketing is especially beneficial for local-based businesses. By understanding where your ads are placed, you can display them to those nearest your business. You can even use targeted ads or discounts to encourage those within your direct area to frequent your business. In this case, your marketing dollars also go further since local customers are more likely to become repeat visitors.
Optimizing a marketing budget may be even more important for smaller businesses. Small or start-up businesses typically have smaller marketing budgets, making choosing marketing techniques likely to produce the best results even more important.
Retargeting Campaigns
You can also use analytic-based marketing to re-target customers. This means you can determine how often and when you want to display ads to certain customers. You can also narrow down your target base by choosing customers who have previously visited your brand but haven’t done so in a few months or years.
You can even target customers from one platform to another. If a potential customer interacts with your brand on social media, you can then provide them with an advertisement featuring a discount on search, helping move them through different parts of the buying cycle.
Understand Buying Barriers
Data collection can also help you better understand what’s stopping customers from frequenting your business. For example, if customers click your advertisement but then abandon your website, it’s likely to be an issue with user experience on your webpage.
If customers don’t spend time viewing your ad or clicking through, they may not be the right target market, or the ad may not be appealing enough to entice action.
Customers who go all the way to your website and add items to their cart but then don’t check out may be turned away by high shipping or handling costs. Overcoming buying barriers is one of the best ways to boost conversions and sales.
Efficient Strategizing
When you have access to the data you need to create targeted marketing campaigns, you can reduce the number of hours spent on advertising. You can also lighten the marketing team’s tasks by quickly identifying which marketing channels will be most beneficial.
Allocating time and money to all the different marketing avenues, including social media, search engine optimization (SEO), pay-per-click (PPC), and content marketing, can be a lot. With the right data, you can identify where you will most likely reach your target customers.
Working with a programmatic advertising company, you can create specific customer profiles that resemble those most likely to become customers of your brand.
Increased Revenue
One of the biggest advantages of analytics-based marketing is the ability to increase sales. By better targeting your customers and increasing your click-through rates, you can bring more people to your website or physical storefront. With data, you can personalize your potential customer’s experience with you, which is also more likely to turn them into loyal customers.
Data can be a powerful tool that helps business owners better understand their target markets. Businesses and marketing teams can use this information to optimize their marketing budgets while improving the overall customer experience.
