What is Data-Driven Marketing: Definition, Importance, Local perspective & Strategy Tips

Identifying your target customers and analyzing their buying habits is key to successful marketing. However, getting customer data is difficult for many companies hence, forced to decide based on their gut feeling.

Data-driven marketing is an approach that focuses on collecting quality data on customers’ needs, desires, and buying habits to optimize brand communications.

What's Data-driven Marketing?

Data-driven marketing is the collection of customer information to gain a deeper understanding of the target market, anticipate their needs, and develop products that promise to address their needs.

Marketers use the insight to develop personalized marketing strategies and choose the most optimal route that will yield a high ROI.

Data-driven marketing uses quality information to identify a specific market segment, tailor the campaign to improve customer experience and drive new customers. Finally, the data will be used to measure the effectiveness of the marketing campaign and make necessary improvements.

Why Data-driven Marketing

Consumers today are flooded with ads and pop-ups. As a result, many are not willing to even give a glimpse of these ads and close them as they appear. Data-driven marketing helps marketers understand their consumers which enables them to get their attention and even take action.

Data-driven strategies provide value to consumers and hence improve brand perception and customer experience as it emanates from a firm’s understanding of consumer needs and interests. Furthermore, it helps companies get more loyal customers that continuously interact with them.

Some of the main benefits of data-driven marketing are:

  1. Identify and define the target audience

The data-driven approach helps your company easily identify its target audience based on their engagement and feedback. This will enable your firm to reach customers with the right message at the right time.

  1. Better Customer Experience

Data-driven marketing is a customer-focused approach hence the information collected from customers is directed to improve customers’ experience. Based on McKinsey findings, personalized experiences for customers enhance marketing spend ROI by 5-8 times.

  1. Produce Quality Content

The more quality data you have of your customers the better the content your produce. This will also enhance the value you add to your customers and improve your brand image. A study shows that 74% of consumers are frustrated with content that’s irrelevant, showing the need for quality content.

Consequently, proper analytics of customer information can give insights that will help to develop quality and relevant content that resonates with the audience.

  1. Foundation for Other Marketing Forms

There are multiple marketing approaches like digital marketing, content marketing, advocacy marketing, and many more. Each of these marketing approaches requires a solid understanding of their customer or stakeholders.

This can be achieved through customer and market data collection, recording, and analysis. Hence, a data-driven approach will be vital for your company despite the choice of marketing strategy or tools used. 

Local Perspective

In Ethiopia, it’s common to base marketing on gut feeling than on research and data analytics. However, things are slowly changing & some firms are realizing the value of data-driven marketing.

The main problem is the lack of tools and technology to quickly gather data, record it and analyze it to gain meaningful insight.

To overcome this, local firms should start by gathering real-time information about their customers using CRM, website analytics, e-commerce, and advertising tools. Then analyze the information in-house or hire a professional marketing consultant.

Data-driven Marketing Done Right

Data-driven marketing is very crucial to ensure all marketing activities are aligned with customers’ needs and interests. Minimizing marketing costs by identifying target customers and developing tailored content and ads is possible through a data-driven approach.

Below I will give you three key points that every company and marketer needs to understand and utilize to have a successful data-driven marketing campaign.

  1. Share data across different channels

Currently, most firms use multiple channels to market their products and services. Insights gathered from one marketing channel should be shared with others without compromising the quality. The use of multiple marketing channels with a consistent message is called Integrated marketing.

Integrated marketing helps your customers get consistent content and brand design across all marketing channels, but this could only happen if the information collected on each channel is shared in real-time.

For instance, data gathered from social media will help you design the right content for your landing page. Share the keywords you use on your landing page on your social media posts. The main point is to create a seamless conversation across these channels.

  1. Use demographic data to plan campaigns

You can collect demographic data like age, race, income, education, and others to plan marketing campaigns. The data can be gathered from your digital marketing channels or onboard offline customer data.

Publicly available data on demography can be very useful, sources like The Central Statistical Agency of Ethiopia (CSA) or similar governmental organizations in your respective country.

These demographic data will help you identify your target market and focus your marketing resources to get a higher ROI.

  1. Data onboarding to gain more insights

According to Digital Doughnut, data onboarding is the process of taking offline customer data and moving it to online platforms. The customer data may include email addresses, phone numbers, and in-store purchases.

Most companies especially in Ethiopia, record data offline hence, this huge amount of data once onboard can be used to analyze customer preferences and buying habits.

This process may be time taking and tiresome, however, once the information is readily available analysis can be done and management can base their decision on that.

Here at S.E.E.D, we provide data-driven marketing as part of the Integrated marketing package.

Our service includes:

  • Collecting customer information through dynamic QR codes
  • Tracking QR code scans and events (like viewing blogs or videos)
  • Collected data from website analytics and social media polls
  • Analyze these data to provide insights into customer purchase behavior
  • Develop integrated marketing plans and procedures
  • Develop content optimized for social media and landing pages
  • Measure the effectiveness of marketing campaigns
  • Provide improvement strategies and solutions

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