Data-Driven Marketing or data analytics for direct to consumer data is marketing that uses data to optimize business performance by collecting data from consumers and analysing them to gain insights. Both in terms of behaviour and statistics that are directly related to consumers to understand consumer behaviour, Process of thinking, and decision making in purchasing products.
Example of using Data-Driven Marketing
According to statistics, 40% of global organizations use data to drive their business, and 64% of marketers also use data to find the best performance for each campaign. An example of using Data-Driven Marketing is as follows:
- A/B Testing is a test to measure marketing outcomes by creating two similar assets, from ad format to audience targeting. To test which ones are the most effective, collect the data for further marketing.
- Customer Journey Mapping / Analysis is the Process of surveying and analyzing the customer experience with the product, from product discovery to purchasing. Having customer data will help plan the Customer Journey to meet customer needs and increase the chances of making a purchase decision.
- Website Personalization uses Data on customer behavior towards the website to improve the design to meet the customer’s behavior as much as possible. Then adjust the product’s position to make it easier to see for the convenience of customers and increase the opportunity to close the sale, etc.
- Focus on Micro-Moment is to focus on the small moments. In the daily life of customers to apply information that has been applied in marketing, such as choosing to eat lunch, Micro-Moment is choosing a place to eat, food menu or co-diners, etc. A micro Moment is a short period. Before the customer decides to buy, being a part of that Moment can increase the likelihood of closing a sale.
- Hyper-Personalization is marketing developed from Personalization through detailed data analysis Insight into customers’ real needs, that is, not just knowing what customers like or dislike. But doing this kind of marketing will know what customers “like” and what factors make them decide to buy that product, for example, some customers “like” discounted products or some customers “like” limited products, etc.
5 Reasons Businesses Should Use Data-Driven Marketing
- Data helps to make strategic decisions.
From statistics, it was found that 76% of marketers make strategic decisions based on data. And the more information there is, the more accurate the decision will be. It is considered to enhance the ability to make direct to consumer data decisions or data-driven decisions.
In strategic planning, detailed information is required, from consumer behavior to sales processes and customer relationship retention. Systematically organize data, analyze the link between the data to gain insights (Insight), and understand data until it becomes knowledge (Wisdom) and eventually develops into a precise strategy.
- Data helps to know and understand the behavior of consumers.
Collecting data gives marketers insights into consumer behavior fundamental to doing business. From converting your audience into customers or turning them into customers (Customer Loyalty), the data used to understand customers can come from demographic data and media usage behaviors collected.
- Increase the value of return on investment (ROI) with Data
Marketers can increase return on investment (ROI) by applying data to marketing campaigns. Advertising through social media like Facebook and Google Adwords as this type of marketing requires spending money to test the accuracy of the campaign.
Therefore, if marketers understand the audience (Audience) in life behavior, they decide on words to search for products (keywords) to the psychology of choosing to click on ads. It will make advertising more accurate and reduce unnecessary costs from trial and error.
- Data helps in product development.
One of the mistakes entrepreneurs make is creating products that don’t meet the needs of their customers. This causes many entrepreneurs to collapse in the first year of setting up the company, but this problem can be solved through data in product development.
The information used to improve and develop products can be collected through collecting direct inquiries from customers (Feedback) or by observing the behavior of customers, that which products have the lowest repeat.
- Maintain the relationship between brand and customer
Data-Driven Marketing helps maintain the relationship between brands and customers (Customer Relationship Management (CRM)) through data analysis. Keep what customers like and improve what customers don’t. To help increase satisfaction and create a positive attitude towards customers towards the brand.
In addition, data can also help maintain an old customer base through retargeting advertising, bringing customers back to repurchase products and services.