Data-driven marketing is a major advantage in digital marketing. It allows marketers and companies to analyze potential marketing strategies with suitable return on investment or ROI.
Data-driven strategies ensure that the right person will be supplied with the right message at the right time. This means it will provide better leads, better content, and better profits. Now, the tricky part is gathering and analyzing all the data and making sense out of it all. The data has to be stored and made available to everyone.
Most CEOs and marketers nowadays agree that some improvements to their marketing strategies are necessary. Luckily, data-driven marketing strategies are becoming quite an improvement indeed.
Reorganizing Business Structure
In order to fully implement a data-driven strategy, different business departments have to share data and work on a more collaborative level. For this reason, data has to be managed organization-wide and business must be restructured in order for a strategic approach to data to be implemented across the entire organization.
The data has to be made available to all departments so they can analyze and use the data in a marketing strategy. This however, demands a certain amount of time and effort, breaking the old habits of all the employees and educating them to the beneficial ways of data-driven environment.
Create a Cross-Department Team
To facilitate and fully exploit the data, a good piece of advice for marketers would be to create a cross-department team. The team should consist of business experts, marketers, and IT personnel. By working together, different areas of expertise can create more efficient ways of developing a data-driven strategy and deploying it for maximum ROI.
Cooperation between different departments will ensure efficiency and consistency in creating data driven strategies. It will also create a more strategic approach to the marketing agenda, when different ideas come together to form a vision.
Data Analysis and Data Testing
In order for data to be useful, it has to be properly analyzed in accordance with company goals. A plan has to be made that will identify views of customers and prospects, strategy’s scale and the response rate, measure of ROI and contribution of all departments involved. However, not all data is relevant. That is why it is important for marketers to implement useful BI software to their analysis that will help them develop their data-driven marketing strategies.
After a clear goal has been set, the organization can run a test data-driven marketing strategy in a lab-environment. That way, even more data can be analyzed and the overall progress and success rate of the strategy can be measured before deploying it in real-time.
This will ensure a good statistical evaluation of the usage of data-driven marketing strategies. If the feedback is positive, the strategy can be scaled-up and re-deployed in real-time. Perhaps even a small-scale strategy can be actually deployed and observed in real-time in order to gather information.
The data gathered will help a marketing department evaluate how the strategy will perform before investing large sums of money in it.
Based on the data that has been assembled and analyzed, marketers can create a metric-based data driven marketing strategy that will optimize itself according to the most valuable and high priority customers.
It will be easier to choose the best audience, the best product placement scenarios, the best marketing solutions, and the best advertising platforms. With a good investment, a data-driven marketing strategy can accumulate the best ROI and be quite profitable in the long run.
Aside from marketers who will greatly benefit from these strategies, all other departments will benefit as well. Having a useful insight into prospects and customers will help everyone do their job more efficiently.
Fully integrating and implementing a data-driven marketing strategy is hard work and time-consuming effort. No wonder very small numbers of businesses are data-driven based. However, the fact that data-driven marketing strategies can vastly improve a company’s ROI, it is only a matter of time before more and more businesses start to be data-driven as well.