Online marketers have access to a full range of website data and analytics, which come from various resources such as Google Analytics, SEO tools, and other platforms.
The analytics data will greatly help if you use the appropriate metrics to get the correct insights. You should drive your primary data from different marketing channels.
For example, you should find the following information.
- Your best-performing posts on social media and how people land on your website.
- The top landing pages that are converting the most customers.
- The areas of improvement and where to put in more efforts to optimize your campaigns.
In this article, we will define data-driven marketing, its scope, and its benefits. Additionally, we will provide some tips and how to use data-driven marketing to the fullest to improve your digital marketing and overall profits.
Case Study of a Winter Apparel Store
A winter apparel store selling clothes worldwide was struggling with the most suitable type of advertising medium and timing. As the product was used during a specific time of the year, they realized they were wasting a lot of money advertising all year round. Finding the best time to start advertising campaigns in different areas of the world was essential.
Off-season sales happen only in certain products that are considered expensive, and these purchases are carefully planned. Most people don't buy FMCG products far ahead of time.
Unplanned and heavy online advertising resulted in reduced profit margins. They needed to identify the best time to run their advertisements in different locations worldwide.
For this, the company created two datasets. In the first dataset, they created a custom dashboard that included information about the purchase time and the buyer's location.
They created another dashboard to provide the information related to the weather data for those specific locations where their customers were mainly based.
Analyzing these data sets quickly led to information about the ideal time of the year when people started planning to buy their winter outfits.
When they started using this information to plan their online advertising, it significantly reduced their advertising cost. Apart from the advertising cost, the store could better manage its stock levels and drive a higher ROI for the company.
It means less warehouse inventory, less maintenance, and better delivery control.
It is impossible to achieve without conducting a data-driven analysis. A data-driven approach is also effective in analyzing consumer habits and purchase patterns. It helps you plan and implement effective strategies to boost sales and decrease expenditure.
What Is Data-Driven Marketing?
Businesses use data-driven marketing, leveraging the power of data and analytics to make better marketing decisions to improve overall profits. It also helps you to enhance your branding, customer experience, and online visibility. The key to successful online marketing is personalized communication for different customer segments.
Data-driven marketing also helps you measure results, optimize campaigns, and quickly take corrective measures.
What are the Benefits of Data-Driven Marketing?
Data-driven marketing can improve your ROI and overall business performance. But apart from it, it has multiple benefits. It helps you to segment your customers, target their messaging and personalize your campaign.
When you make informed decisions, your marketing becomes laser-sharp, achieving much better results.
The other benefits are as follows.
- It helps you better utilize your time and resources, which is crucial to your success in any business.
- Data-driven marketing helps you to understand your customers better. It is the key to improving marketing campaigns with better targeting and effective strategies.
- It also helps you to identify new markets and growth opportunities. By analyzing the purchasing habits and current trends, you can quickly identify new markets and the need for new products to bridge the gap in the market.
What Is a Data-Driven Marketing Agency?
A data-driven marketing agency uses data to make its critical marketing decisions, including the selection of the most effective marketing channels and messaging to use for your target audience.
When you hire a data-driven marketing agency, you are confident that your hard-earned money is not wasted on experimentation. Your campaigns are fully optimized, and your marketing strategies are incredibly effective. It also ensures you hit the right audience with your messages instead of doing guesswork and praying for your campaigns to work.
A data-driven marketing agency ensures your clients receive value for their marketing spending.
How to Do Data-Driven Marketing?
In a data-driven marketing environment, data is analyzed before making any decision.
To effectively implement a data-driven marketing campaign, you need the following things.
1. A Robust Reporting Tool
To use customer data, you need to have a proper collection and storage strategy. It would help if you had a robust reporting tool for that.
Pro Tip: You can use the DashClicks InstaReports tool to get the best insights and tips to improve your campaign. InstaReports is an automated tool that can gather information from numerous third-party tools and platforms and generate a report in seconds.
2. Data Analysis Skills
Raw data is of no use. You need valuable insights and discover trends; for this, you must have advanced analytical skills.
3. Ability to Take Action Based on the Insights
You need the necessary skills and experience to take the required action based on these insights. So, you can create new marketing campaigns and tweak your existing campaigns and approach.
4. Willingness to Take Risks and Experiment
Data-driven marketing is inspired by innovation and a willingness to learn and take risks. If you're not ready to experiment with new things and explore unchartered territories, it will not work. There are endless possibilities, and you should be willing to take calculated risks.
How to Analyze Digital Marketing Data?
When you analyze data, you know what works and what doesn't. So, phase out the wasteful or weak strategies and replace them with the most effective ones.
Data-driven marketing provides you with the right kind of information that you can use to make your campaigns more effective. There are many ways you can use your data to get valuable insights.
Here are a few such tips:
1. Optimize Your Website for Bounce Rate and New Keywords
The success of your website largely depends on how you optimize it for new keywords and the bounce rate. Google does not like web pages with a high bounce rate as it indicates that the visitor didn't find the information interesting and relevant. Your keyword choice can also be a sign of poor targeting and substandard content.
That's why you should continuously experiment with new keywords and trends to create the content your audience is looking for. You can use Google Analytics to find out your bounce rate.
A high bounce rate often indicates that users' search intent is not fulfilled, so avoid using wrong keywords at any cost. Using relevant keywords is the key to success.
2. Improve Your Content Quality
If you are not getting enough traffic on your web pages, your content quality is not up to the mark. Make sure your content offers value and addresses the pain points of your customers.
You can effectively use marketing data to check whether your content is providing value to your audience or not. There are several metrics that you can use to check the engagement levels.
3. Use Audience Analytics to Target the Right Audience
A data-driven organization is always interested in audience analytics because this is the only way to attract the right people and spend your money on the proper channels.
You can use social media analytics i.e., Facebook and Twitter analytics, because many people engage with you on social media. Social media analytics also gives you ample information about your audience, including the demographics and habits of your customers.
It also includes the information related to the products and the content your audience is interested in.
Pro Tip: You can use DashClicks' social media dashboards to get the desired information.
4. Take a Local Approach if NeededĀ
Switch to location analytics if location-based marketing is essential for you. Location-based advertising and marketing also provide you with an edge over your rivals.
If a large portion of your audience lives in a specific location, you can use these insights to create localized content and targeted messaging to drive the best results.
5. Use Customer Journey Insights to Optimize Your Touchpoints
A customer goes through various stages and uses different touchpoints when interacting with your brand during his journey. Knowing these touchpoints and customer journey stages is crucial so you can use them in your marketing strategy.
Ā You can use social media analytics and search engine analytics to get to know the devices they use and the content they like to consume. It will also give you a fair idea of the returning customers.
Such insights will make your marketing more effective. It will also help you to clear the roadblocks your customers come across and the concerns they might have before they decide to purchase from you.
These data points will also provide helpful information about the issues in your website, the main areas of friction, and the pages customers are bouncing from.
You can use the vast data available through various sources to optimize and improve your digital marketing strategy. You can use DashClicks’ dashboard to get the wealth of information at your fingertips. It’s possible because of the numerous third-party integrations the platform allows and its robust automated reporting tools that can create digital marketing reports within seconds.