Does Data Improve Digital Marketing?
Marketing does not depend on hypotheses or experimentation – it is based on data that allows marketers to make informed decisions. According to Forbes, 64% of executives agree that data-driven marketing is essential for success amid the competitive world we live in. 57% said that data-driven marketing campaigns showed a higher ROI as compared to non-data-driven campaigns.
Whether it’s from your website, social media, or previous digital marketing campaigns, data can be used to infer the needs and wants of customers and help develop successful marketing strategies. Data analysis can help improve digital marketing in a number of ways, some of which I’ve outlined in this article.
How Data Can Improve Digital Marketing
Data is everywhere. From your website and social media to ads and newsletters, everything accumulates data about your customers and their buying habits. Analyzing this data can allow you to see what is working, what isn’t, and where to improve.
Recognizing Trends
Data can be used to recognize trends and incorporate them. For example, popular keywords can be researched and used to capitalize on current trends, or to drive traffic to otherwise unpopular pages. This can involve using tools like Google Keyword Tool and Ubersuggest to help with SEO needs.
Predicting Needs
Data can also be used to predict users’ future needs, which marketers can use to offer solutions to problems that don’t yet exist. For example, when booking an airline ticket through websites like Expedia or Booking.com, the consumer is sent follow-up emails asking if they’d like to book a hotel, whether they need a car rental, airport pick-up service, etc. These websites are anticipating users’ needs based on the information they have. Data-driven marketing like this can result in conversions.
Improving Marketing Campaigns
Because data helps businesses understand consumers, it can also help improve marketing campaigns. Data about previous campaigns can be used to ensure that new campaigns capitalize on the successes of previous campaigns and avoid the pitfalls.
Adjusting Content
Data can also be used to adjust content to suit consumers’ preferences. Netflix and YouTube, for example, provide users with recommendations based on their watching history. Amazon and other online retailers provide users with recommended items based on what other sellers have purchased. Purito, a popular Korean brand, is known to take criticism well, and has made unscented versions of their bestselling products because consumers had complaints about fragrance.
In terms of websites, data on bounce rates and page visits can help marketers understand what interests their audience. They can then focus more attention on what consumers are responding well to and do away with unpopular content that may have resulted in high bounce rates.
Adjusting Design
In addition to adjusting content, data from websites can allow businesses to adjust design. UX design <insert link to article on UX design> is proving to be increasingly important, and lazy website design can alienate potential customers. From loading speed to responsive design, improving your website can make all the difference in the world. 88% of users may not return to your website if they have a bad user experience – improving upon it can retain future visitors, which can then improve sales and revenue.
Creating Buyer Personas
Marketers can use data such as purchasing patterns, occupation data, personality data, and background data to develop buyer personas. Similarities can be used to create buyer personas and better understand your audience. Findings can then contribute to marketing campaigns and strategies. In addition to targeting new niches, businesses can find new target audiences as well.
Personalization
Using data can help businesses personalize their campaigns, which can increase sales. 80% of consumers are more likely to make purchases when a brand uses personalization. Behavioral segmentation is one of the ways this can be achieved. Personalization can even be as simple as using the customer’s name instead of a generic greeting in an email.
Testing Marketing Channels
Consumers on different marketing channels respond to different strategies. What works on Instagram, for example, will not work on LinkedIn. Marketers can use data to test different channels and see which strategies they respond to. They can then target specific strategies to specific marketing channels.
For example, a business can use data to figure out that they need to focus on influencer marketing on YouTube but work on content marketing on Pinterest. In doing this, businesses can cut down on marketing costs and focus on channels that are working.
Determining Pricing
Data analysis, including competitor analysis, helps businesses determine the best price for their products or services. Prices can vary throughout the year depending on the different seasons, cost of raw materials, or fluctuating demand. Using data to re-evaluate and optimize pricing can help increase both, sales and revenue.
Rewarding Loyal Customers
While focusing on new leads is important, businesses should take care not to neglect their loyal customers. By using data-driven marketing, businesses can reward loyal customers with discounts, free gifts, or special deals. Not only does this cultivate relationships with returning customers, but it also offers them incentives to make further purchases.
Implementing loyalty programs can also help with customer retention. Customers will not only come back for perks, but businesses can further use the loyalty program as a source of data to study purchasing behavior and habits.
Use Data in Digital Marketing
Using data analysis for these purposes can result in an increase in ROI, something that is important for every business. However, data analysis can be time consuming and tedious if you don’t know what you’re doing.
Fortunately, I am well-versed in data-driven marketing and have over 12 years of experience in the field. If you’re in need of any digital marketing assistance, contact me here and we can discuss further.
