With limited marketing budgets, the main focus has been on creatives and research for the past decade. However, if we look closely at the last two quarters, the increase in data-driven marketing is unmistakably visible; with numerous tools now available at your fingertips. Brands across industries including healthcare, education, nonprofits and others are testing the AB testing strategy in a tailspin – relying on data makes a lot more sense.
With digital marketing tools improving: efficient, predictive and strategic, marketers can rely on complete data-driven marketing in critical situations. Here are three easy ways to leverage data to strengthen your marketing campaigns:
Humanize data sets by integrating data to enrich customer profiles with a 360-degree view of different channels in all categories. Channel preferences and predictive behavior go hand in hand to measure a clear picture. The more you understand your customer from a human perspective, the better you can nurture the relationship to maximize reach.
Customer master cycles
Analysts have long leveraged the data to identify the final drop in the call to action (CTA) or buying process. Sometimes looking at past, present, and future forecast charts can be very helpful in drawing insightful patterns. These, in turn, provide so much useful data that it can strengthen your campaign game rather than relying on data that belongs to different siled time frames.
Behind an uninterrupted series of 0’s and 1’s is the secret of hyper-personalization to optimize campaigns from strategy to success. To keep up with ever-changing customer needs and preferences, analyze data resources to create a ‘2D2P’ model – that is, descriptive, diagnostic, predictive, and prescriptive. This approach can help you further strengthen your personalization game, and in turn, maximize the impact of your marketing campaigns.
The pandemic has undoubtedly accelerated the expected shift from traditional advertising channels to digital advertising. As a result, even for traditional stores, 21 of the 28 user journey touchpoints are now digital. In this highly innovative phase, brands will do their best to explore different channels and means to interact with their customers. Data-driven marketing enables brands to look beyond the smoke screen of hyperactivity and pave the way to a focused media mix.
Data in digital marketing is not limited to media planning, but can be applied to a wide range of organizational growth goals.
Let’s look at some applications of the data collected during marketing efforts and how it can be used to improve future strategies:
Market segment transformation
For most brands, traditionally researched marketers define market segmentation for decades to come. However, data collected digitally at a granular level, such as PIN code sales, the most used keywords in a location, social signals from a stakeholder can elucidate emerging or untapped markets. Brands can take advantage of this bird’s-eye view to derive new people and transform their market segments as well as their strategies entirely.
A recent example of this is that of the Lamborghini brand. They organized an event on the mobile gaming platform Asphalt 9: Legends. This is where they reached millennial audiences around the world on their mobile devices and enriched their brand identity by reaching a new audience segment.
Determine the market focus
Not only does the data analysis determine the market segment, but it can also comment on the group size for brands to prioritize their marketing efforts. After careful analysis of behavior patterns, brands can find creative ways to reach newly formed segments. For example: The pandemic saw an emerging segment of people who wanted to learn simple, low-intensity physical activities like Yoga and Pilates from the safety of their homes. This forced strictly offline instructors to start academies and sessions online. The instructors also had to package their classes to suit online settings, preferred times, and type of audience.
With data, brands can find those touch points to virtually transform their users’ shopping experience and increase sales. Other examples include online gigs, virtual avatars to try on clothes and glasses, virtual property views, designing your own shoes, etc.
Product / service extensions
Marketing data such as product ratings, reviews, social signals, and cart activity can be leveraged to design and deliver the right product / service innovations. Sentiment analysis can reveal what your customers like or don’t like about your product / service.
The most common example of this is the Apple Watch that transforms its digital watch into a fitness tracker, IoT, and mobile accessory to reach audiences looking for a value-for-money offer over brand equity. By adjusting its offering based on reviews and market sentiment, Apple successfully turned the lukewarm market response to the Apple Watch into one of the most sought-after products.
As we saw through some of the previous examples, marketing data and its applications can drive overall business plans and end-to-end product / service lifecycles. All of this data can be collected and analyzed with the support of the right tools and analytics experts. However, integrating data-driven strategies in any organization requires integration at multiple levels operationally. Like any new strategy, you need change management efforts to achieve operational efficiency. With the right management tools and approach, data-driven marketing can deliver an optimal return on investment. A robust data backup is sure to help you thrive into the “next normal.”
[The author of the article is Vinay Tamboli, Sr. VP – Digital Analytics & Consulting Business, Logicserve Digital]