Data Driven Marketing: Its Significance In Business
Task: Provide a detailed report on the significance of data driven marketing in the modern era.
The combined effort to gather, examine, and interpret the information to attain marketing ambitions is termed as data-driven marketing. The customer behaviour, the approach to be taken in marketing campaigns, existing market trends, etc. could be effectively understood by systematically implementing the data driven marketing.
Definition of data driven marketing
The modern market scenario is very data-rich because of the heavy use of various advanced gadgets and social media. The organizations could use the maximum use of this humungous data to determine the trend followed by the customers. The customers leave a wide range of information on social media platforms that help companies target various aspects of marketing communications.
Most modern organizations realize the significance of data-driven management, and they widely and frequently imply its principles. The estimated 64 per cent of the organizations at the global level favour the implementation of Customer-Centric Marketing and Data Driven Marketing and argue it to be the essential act as per the Forbes Insights Report report.
It has been observed that 60 per cent of the organizations perform better than their competitors when they have a better understanding of customers, as per the study conducted by IBM. It justifies the reason why around 78 per cent of the global market heavily rely on the data driven marketing tools. Major strategies within the organizations were taken
in 2013 based on the insights gained from data driven marketing.
The marketers' actions are being initiated from the conclusion attained from the process of data driven marketing. By this approach, the organization could easily satisfy the needs and demands of the targeted customers. The vision obtained from it plays a decisive role in altering the marketing strategy. The companies collect the relevant information from every activity conducted by the customer (that is majorly situated on corporate websites, online stores, social media, etc.). The process is not simple, and it requires focused effort to collect the customer information from such touchpoints situated both at online and offline platforms.
Many advantages and purpose could be satisfied through the implementation of data driven marketing. They are: -
- Aids in arriving at precise decisions within the required time.
- Increasing the efficiency of the online marketing campaigns
- The efficient forecasting of the market events/ Better predictive analytics
- Attaining better performance by the higher level of customization in the marketing campaigns.
- Strengthening the base of the business by increasing customer loyalty.
- Higher optimization in conducting the social media communication.
- The higher level of customer satisfaction
- Delivering the service and products which are more relevant to the customers.
- The higher level of efficiency in the customer service
- Better employ target topic planning by achieving content marketing.
Relevant tools to attain the insights of data driven marketing
Data driven marketing is very complex because of the presence of humungous data sets and their interlinking nature. By the systematic and coordinated use of the organization's analysis and reporting tools, the associated processes like gathering, organizing, and evaluation could be done very effectively. The key performance indicators should be scrutinized strictly by the organization to achieve the targeted goal.
Web analytics tools: One of the most prominent tools used for web analytics is Google analytics tools. The behavior of a client or the customer on a website could be easily understood by using the Google Analytics tool. The major key performance indicators like the time span of the stay, traffic witnessed on a particular website, the number of pages read by the visitor, etc. The organization could also use other web analytic tools like Chart Beat, E-Tracker, and Piwik as a substitute for Google analytics.
Marketing automation tools: Some specific software could be used along with the web analytic tools to enhance the associated communication channels. They are often termed as marketing automation tools. The organization could bring the element of customization to their marketing campaigns by making the use of software like Silverpop, Hubspot, and Marketo. The user's particular information is collected by the operative software when he or she visits a particular online store or web page. Based on this collected information, the company would draft their customized marketing campaiwillThe company would not succeed in its advancements if they fail to understand the students' behavior and requirement. The integrated approach with social media platforms like Twitter and Facebook could be used in lead management by the use of marketing automation tools.
Customer relationship management systems
The customer relationship management systems further utilize the observation made by analyzing the marketing automation tools' information. Customer relationships could be managed very easily by using relevant software programs. The central customer database is developed by collecting the information while the purchases are used with this context. The organization is managing the communication with the targeted customer base by using the CRM tools such as Sugar, and Salesforce. The departments of customer service manage the analysis conducted by these tools
-marketing and sales.
The organization could easily advance the act of online marketing and content marketing by the proper use of customer relationship management tools in its systems. Modern marketing campaigns are heavily reliant on digital communication which significantly is molded by the specific approach towards customer relationship management. By the systematic analysis of the collected data, the company could easily get an idea of the type of product to be designed for the needs of the customer. The potential customers and clients could be effortlessly targeted since the data driven marketing provides easy access to them. The key performing assets are kept under scrutiny by referring to the customer path of purchase.
-Social media analysis tools
The tools coming under this division would help the interested parties understand the current market trend. However, these tools have their own limitations and could not be used for the purposes of measuring the key performance indicators. The organization would have to use other specific tools to measure the parameters like shares, mentions, and interactions of the customers. Communication for marketing could be further optimized by the use of social media analysis tools. The famous tools that come under this classification are Vico, Brandwatch, and Sysomos.
The report has stressed the aspect that the significance of data has increased as a decision-making tool among marketers. The organization could record a high level of progress by implying various data driven marketing tools. As per the report, more than 60 per cent of the population has witnessed significant progress in their business adopting innovative strategies by referring to the customer data. The marketing campaigns' ROI was significantly proven to be improved by implementing data driven marketing principles.
We have observed that the approach of adopting the data driven marketing principles in the respective organization systems is not a simple process. It is almost impossible to implement the concept in the absence of the right staff members, and the right technology since they are important to handle, organize and interpret the available information.