What is data-driven marketing and why do large companies use it?
Posted: Wed Dec 04, 2024 6:33 am
Slowly but surely, data-driven is taking over the world – both in marketing and business. The concept of data-driven decision is becoming more and more common – decisions made based on a large amount of data. And this means that we live in interesting times. Entrepreneurs can make effective decisions with scientific precision because they are supported by ironclad facts and fresh figures. Previously, this could only be a dream: it was necessary to rely on intuition or fragmentary contradictory information. From this article, you will learn what data-driven marketing is and how to implement it in a company.
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What is Data Driven Marketing
Data-driven marketing is an approach where decisions on promotion and positioning are based on the data obtained. As is known albania phone number resource the goal of marketing is to make a profit by satisfying people's needs.
And to do this, you need to reach the target audience and sell a product or service. Statistics helps the marketer and entrepreneur in this. They analyze it or seek advice from a team of analysts who painstakingly study each figure and find patterns.
That is, in such marketing, data plays a big role. It helps in sales and other areas that are directly or indirectly related to marketing.
The essence of the data-driven approach
The principles of data-driven are simple: a marketer makes a decision based on analysis, analysis, and more analysis of numbers. Intuition and personal experience are secondary. Specialists must be able to interpret data and build hypotheses. In addition, the company should take care of how to obtain, store, and visualize numbers. You can’t do without counters and analytics services, as well as without technologies: machine learning, predictive analysis, and artificial intelligence.
Data-driven marketing
Data-driven does not guarantee that sales will grow on their own. It is not an autopilot mode, when you just sit at the monitor and watch the profit accrue. Although it is possible that such technologies will appear in the future. However, it is difficult to miscalculate when you build marketing based on data
You get knowledge, and all that remains is to use it wisely. And knowledge, as we know, is power. Sometimes data-driven predicts the future. By collecting statistics by periods, and they need to be systematized somehow, you will find correlations. You create audience behavior models, forecast sales and set KPIs thanks to data-driven.
To understand how data determines the outcome, let's look at some examples.
Data-driven in management
When a manager gets analytics, he has room to maneuver. Data-driven management is managing a company based on a large amount of data. In this case, collecting statistics serves to form an evidence base. This is necessary for the development and stability of the company, especially in today's rapidly changing conditions.
The manager reacts confidently and, most importantly, promptly to market fluctuations. Real-time monitoring gives the manager and the team a chance to make a quick decision.
Large companies such as Google, Chevron, Intel, Amazon and Russia's Sberbank regularly use data-driven analytics. However, this does not mean that small and medium businesses cannot implement these technologies.
Data-driven in design
The designer receives a task for layouts and creatives. But the designer is guided by the data and recommendations of the analyst or customer. The priority is not "at his own discretion", but the results of observations. For example, the company found out the patterns of user behavior, and it turned out that the UX/UI design requires improvement.
This is indicated by the site's poor conversion rates and heat map studies. And then the web designer works to fix it. For example, it is known that a site with images of people with emotions increases conversion.
As a result, both the customer and the designer are satisfied. Fewer unclear, so unloved edits and more reasoned arguments.
Data-driven in marketing
It is difficult to find a marketer who would refuse to work with analytical reports on advertising campaigns. Super-productive advertising is what a data-driven company guarantees. For example, a car dealership has conducted advertising campaigns: their results on leads, conversions and cost of conversion flow into the analytical center.
As a result, the marketer sees the effectiveness of certain sources and traffic channels. Thus, it turned out that the second campaign collected more clients from the conditional YAN platform than from search advertising. The marketer concludes that it is worth trying more placements in YAN.
Add to this the target audience analytics: here, thanks to data-driven, it is easier to learn consumer insights and behavioral characteristics. As a result, you know a little more about your future customers than they do themselves.
Advantages of the approach
What are the benefits of being data-driven? By using technology and analysis based on more data, you gain an edge over your competitors.
All key decisions in management, design and marketing are based only on figures and facts. That is, all measures will be justified because they are based on regularities;
The data-driven field of view is up-to-date data, and this allows you to exclude the human factor. When making decisions, you will not encounter “a matter of taste”, “my intuition tells me so”, “it will just be better this way” and so on. Even the most competent and unique expert physically does not have time to learn about all the changes in the industry, and technology will do this quickly and reliably;
As a result, the company improves its marketing strategy. After all, if you have an idea of the effectiveness of traffic channels, you either increase investments there or reduce expenses;
The data-driven approach also improves the level of customer service. Implementing work based on the volume of data will reveal the entire behavioral picture of the target audience. Knowing this, you essentially get a roadmap for improving customer focus.
Of course, for data-driven to be useful, everything needs to be set up and connected correctly. At the same time, we must not forget about the uniqueness of each company, and therefore it is worth considering the specifics and features of both the business and the industry.
Data Drive
Who should do data-driven marketing?
In corporations, entire departments are dedicated to data-driven marketing. However, if we talk about companies to a lesser extent, then, as a rule, this is done by an analyst or data scientist. Sometimes a marketer and a product manager who knows everything about the company and the product being promoted are involved in this matter. Usually, in data-driven marketing, a link is formed: analyst - marketer or other performer.
Calltouch
Attract, convert and analyze your customers
Omnichannel Marketing Platform
Read more
What is Data Driven Marketing
Data-driven marketing is an approach where decisions on promotion and positioning are based on the data obtained. As is known albania phone number resource the goal of marketing is to make a profit by satisfying people's needs.
And to do this, you need to reach the target audience and sell a product or service. Statistics helps the marketer and entrepreneur in this. They analyze it or seek advice from a team of analysts who painstakingly study each figure and find patterns.
That is, in such marketing, data plays a big role. It helps in sales and other areas that are directly or indirectly related to marketing.
The essence of the data-driven approach
The principles of data-driven are simple: a marketer makes a decision based on analysis, analysis, and more analysis of numbers. Intuition and personal experience are secondary. Specialists must be able to interpret data and build hypotheses. In addition, the company should take care of how to obtain, store, and visualize numbers. You can’t do without counters and analytics services, as well as without technologies: machine learning, predictive analysis, and artificial intelligence.
Data-driven marketing
Data-driven does not guarantee that sales will grow on their own. It is not an autopilot mode, when you just sit at the monitor and watch the profit accrue. Although it is possible that such technologies will appear in the future. However, it is difficult to miscalculate when you build marketing based on data
You get knowledge, and all that remains is to use it wisely. And knowledge, as we know, is power. Sometimes data-driven predicts the future. By collecting statistics by periods, and they need to be systematized somehow, you will find correlations. You create audience behavior models, forecast sales and set KPIs thanks to data-driven.
To understand how data determines the outcome, let's look at some examples.
Data-driven in management
When a manager gets analytics, he has room to maneuver. Data-driven management is managing a company based on a large amount of data. In this case, collecting statistics serves to form an evidence base. This is necessary for the development and stability of the company, especially in today's rapidly changing conditions.
The manager reacts confidently and, most importantly, promptly to market fluctuations. Real-time monitoring gives the manager and the team a chance to make a quick decision.
Large companies such as Google, Chevron, Intel, Amazon and Russia's Sberbank regularly use data-driven analytics. However, this does not mean that small and medium businesses cannot implement these technologies.
Data-driven in design
The designer receives a task for layouts and creatives. But the designer is guided by the data and recommendations of the analyst or customer. The priority is not "at his own discretion", but the results of observations. For example, the company found out the patterns of user behavior, and it turned out that the UX/UI design requires improvement.
This is indicated by the site's poor conversion rates and heat map studies. And then the web designer works to fix it. For example, it is known that a site with images of people with emotions increases conversion.
As a result, both the customer and the designer are satisfied. Fewer unclear, so unloved edits and more reasoned arguments.
Data-driven in marketing
It is difficult to find a marketer who would refuse to work with analytical reports on advertising campaigns. Super-productive advertising is what a data-driven company guarantees. For example, a car dealership has conducted advertising campaigns: their results on leads, conversions and cost of conversion flow into the analytical center.
As a result, the marketer sees the effectiveness of certain sources and traffic channels. Thus, it turned out that the second campaign collected more clients from the conditional YAN platform than from search advertising. The marketer concludes that it is worth trying more placements in YAN.
Add to this the target audience analytics: here, thanks to data-driven, it is easier to learn consumer insights and behavioral characteristics. As a result, you know a little more about your future customers than they do themselves.
Advantages of the approach
What are the benefits of being data-driven? By using technology and analysis based on more data, you gain an edge over your competitors.
All key decisions in management, design and marketing are based only on figures and facts. That is, all measures will be justified because they are based on regularities;
The data-driven field of view is up-to-date data, and this allows you to exclude the human factor. When making decisions, you will not encounter “a matter of taste”, “my intuition tells me so”, “it will just be better this way” and so on. Even the most competent and unique expert physically does not have time to learn about all the changes in the industry, and technology will do this quickly and reliably;
As a result, the company improves its marketing strategy. After all, if you have an idea of the effectiveness of traffic channels, you either increase investments there or reduce expenses;
The data-driven approach also improves the level of customer service. Implementing work based on the volume of data will reveal the entire behavioral picture of the target audience. Knowing this, you essentially get a roadmap for improving customer focus.
Of course, for data-driven to be useful, everything needs to be set up and connected correctly. At the same time, we must not forget about the uniqueness of each company, and therefore it is worth considering the specifics and features of both the business and the industry.
Data Drive
Who should do data-driven marketing?
In corporations, entire departments are dedicated to data-driven marketing. However, if we talk about companies to a lesser extent, then, as a rule, this is done by an analyst or data scientist. Sometimes a marketer and a product manager who knows everything about the company and the product being promoted are involved in this matter. Usually, in data-driven marketing, a link is formed: analyst - marketer or other performer.