We are hearing more about Data Driven Marketing and how it is possible to exploit the potential of Big Data, Artificial Intelligence and Data Management Platform to create strategies aimed at involving and engaging customers and prospects. But what is Data Driven Marketing and why is it so important for companies?
Data Driven Marketing is a new approach that combines the principles of traditional marketing with data collection technologies and analysis on users to create business strategies and messages tailored to the needs of specific targets.
Until a few years ago, marketing could only work on so-called passive buyers. The targets of the promotional and ADV campaigns were individuals for which an inaccurate profile was available: the messages were, therefore, not very effective, reasoned for broad, sometimes clumsily segmented, audiences. However, today, technology allows taking advantage of data on people's Internet browsing and their interactions on social media to create more targeted and timely marketing strategies. These strategies fall under the hair of Data Driven Marketing and are aimed at active buyers, individuals potentially interested in an offer because, maybe, they have already carried out online research on a product or service.
Beyond socio-demographic data related to age, gender, or profession, today it is possible to collect information on the online behaviour of individuals, like the time spent on a site or the content that has been searched, to understand hobbies and interests. If we add to this data, the data derived from direct interactions with the company, such as the frequency of purchases, the request for information or subscription to newsletters, what was a blurred identikit of the customer becomes a more complete and detailed digital portrait. A portrait that allows marketing to develop more timely and precise multi-channel strategies. Clearly, this raises the effectiveness of marketing assets to the nth degree, improving brand visibility, increasing sales, and minimising the well-known churn rate.
The main benefits of Data Driven Marketing
The potential of Data Driven Marketing can be exploited to achieve various objectives. These are the main ones:
- Create tailormade relations: One of the main challenges for a brand is to be able to create empathy and be engaging. This means establishing a relationship with prospects and customers that is as unique, unrepeatable, and customised as possible. Today the Data Driven Marketing approaches and technologies make this possible.
- Implement real-time marketing strategies: the customer journey is no longer a step-by-step process, but a set of “hit and run” interactions: micro-moments in which the customer relates to the brand in the shop, but even on social networks or on the website. Moments in which they are more inclined to buy a product, experiment a service or even just simply “listen” to what the company has to say. Marketers have long understood the importance of these micro-moments to create high-impact marketing messages and strategies, providing non-invasive value content and information when the customer or prospect needs it most.
- Re-clustering one’s target: this is one of the main objectives of Data Driven Marketing strategies. Segmentation based on socio-demographic information has long proven its limits. However, current technologies allow the acquisition and correlation of information on many aspects of a client or a prospect’s life: their habits, their hobbies, personal interests (music, travel, reading...). This allows the company to better understand its target audience, defining more effective and efficient promotions and offers.
According to the data of the latest “Data & Marketing Association Business Report”, carried out by the American research firm Winterberry on a sample of 455 US marketing managers, 88% of the companies already implement active segmentation strategies (based on the analysis of online attitudes and behaviour) to improve the engagement. Furthermore, 53.4% admit to having increased their investments in Data Driven Marketing technologies during the last 12 months. Proof of the effectiveness of the Data Driven Marketing strategies is the data of the “2017 Personalisation Development Study” by Monetate, carried out on a sample of 130 senior marketers of companies scattered across the five continents: for 79% of the cases, the realities that have implemented Data Driven Marketing strategies not only reached their turnover target but even exceeded what they had intended to achieve.