What is Data Driven Marketing?
Data - driven marketing is a strategy that is based on the analysis of data to convert it into useful information that serves as a guide for making marketing and advertising decisions. Instead of relying solely on intuition or assumptions, this approach relies on concrete data and metrics that allow a better understanding of customers, their behaviors, preferences and needs.
A data-driven company would therefore be one that continuously collects gambling data japan phone number data to improve its strategies. This data collection should come from various sources, such as interactions on social networks, purchase history, activity on the website and demographic data, mainly.
Once collected, they are analysed and used to segment customers into more specific groups. This makes it easier to understand which messages, offers or channels are most effective for communicating with each of them.
The popularity of Data Driven Marketing has increased in recent years for several reasons. Firstly, technological advancement has made it possible to collect, store and analyse large volumes of data on an unprecedented scale. Alongside Data Analytics , artificial intelligence and machine learning have enabled deeper and more predictive analysis of data, which equates to a more complete understanding of customer behaviour.
On the other hand, the increased use of social media has provided experts with data on consumer interaction online. This has made marketing strategies more personalized and precise than ever before. And in addition to improving customer relationships, and therefore sales, companies are also able to differentiate themselves and gain a competitive advantage.
5 essential steps to apply data-driven marketing to your business
To apply Data Driven Marketing to a company, the following steps can be followed:
Data collection
Data is the basis of our knowledge. However, the number of these has grown exponentially in recent years, which is why we are now talking about Big Data . To simplify the process and subsequent analysis, we must focus on what we want to measure and concentrate only on those data that lead to this objective.
In Data Driven Marketing , there are several methods that can be used to collect data, such as the following:
- Transaction data analysis. Sales and transaction records are examined to understand which products or services are popular, when purchases are made, and how much customers spend. In a supermarket, one might analyze the most common combinations that customers buy certain products. For example, plant-based milks with whole grain cereals.
- Online behavior tracking. Cookies and other web analytics tools track users' actions on a website, such as pages visited, time spent on each page, and actions taken, such as clicking a purchase button. This information can help you understand which pages aren't working well or where visitors' attention is directed.
- Surveys and questionnaires. These provide direct feedback from customers about their preferences, opinions, and experiences. For example, a financial services company might send surveys to its customers to find out which features they value most in a mobile banking app.
- Social media analytics. These provide data on user posts, likes, comments, and connections. A food company could monitor social media conversations to identify dietary trends.
- Geolocation data. Customers' location and movement patterns provide insight into where they frequently visit and their proximity to physical stores. A restaurant chain could use this data to send personalized offers to customers who are near its locations.
Data analysis and measurement
Analytics refers to the process of examining, cleaning, and modeling data to discover patterns, trends, and relationships that can be useful in better understanding the data being studied. It involves the use of statistical techniques, machine learning algorithms, and visualization tools.
Data measurement, on the other hand, involves collecting and quantifying specific data using metrics and KPIs, which are Key Performance Indicators. To measure, evaluation criteria are established and it is defined which data is important to be monitored and analyzed.
To carry out both, tools such as:
- Google Analytics 4. Measures and analyzes web traffic, user behavior, and the performance of digital marketing campaigns. It provides detailed information about visitors to a website, their interaction with the content, and the actions they take. This allows you to optimize your site and content strategy.
- Hootsuite. Hootsuite is a social media management tool that monitors and analyzes activity across multiple social platforms. It measures reach, engagement, and audience demographics.
- Salesforce is an advanced customer relationship management (CRM) platform that collects, organizes, and analyzes data about customers and prospects. It also tracks the customer lifecycle, identifies sales opportunities, and personalizes customer interactions based on their history and behavior.
- Tableau is a data visualization tool that allows you to create interactive charts and custom dashboards to explore and communicate relevant insights. It makes it easier to understand large data sets and identify trends and patterns.