Learn more about data-driven marketing
What is your data-driven marketing process?
What are some tips and things to be aware of when it comes to data-driven marketing?
Data-driven marketing is a marketing strategy that utilizes multiple data sources.
Because it is not dependent on "intuition and experience" as in the past, it enables speedy and highly repeatable marketing .
However, some managers may be hesitant to implement it because they are unsure of the content or procedures.
This article is an introduction to data-driven marketing and explains the benefits of implementing it, how to use it, and how to create a strategy.
It also explains tips and precautions to avoid failure, so it is recommended for those who are considering implementing it.
If you want to improve your business performance and grow your company, read this article to the end.
table of contents
Introduction to Data-Driven Marketing Part 1 [Basic Knowledge]
Why Data-Driven Marketing is Important
Introduction to Data-Driven Marketing Part 2 [Benefits of Using It]
Improved ROI (return on investment)
Low dependency on individuals and high reproducibility
Improved customer satisfaction
Introduction to Data-Driven Marketing Part 3 [Five Steps Required for a Strategy]
1. Design a KPI tree
2. Collect the data you need to make use of it
3. Visualize and process the data to make it usable
4. Analyze data and develop strategies
5. Implement the strategy and verify its effectiveness
Introduction to Data-Driven Marketing Part 4 [Tips for Effective Use]
Make sure everyone understands the importance of data
Gather and organize the right people
Show more
Introduction to Data-Driven Marketing Part 1 [Basic Knowledge]
data-driven-marketing-difference
Data-driven is a term used in computer science that means "driven by data."
In business, it refers to the process of making decisions based on data analysis.
Data-driven marketing is a method of building marketing based on data .
The golden rule is that all actions start with data, and decisions estonia business email list are never made based on anything other than data, such as ideas, intuition, experience, or courage.
Why Data-Driven Marketing is Important
Customer purchasing behavior has become more diverse and complex.
It has become easier to collect huge amounts of data, enabling advanced analysis.
More cost-effective marketing than ever before
In the past, the mainstream marketing method was to deliver the same message to an unspecified number of customers.
Nowadays, as customer purchasing behavior has become more complex, data-driven marketing that can collect data for each medium (sales channel) and analyze behavior and emotions is becoming more important.
Another major reason is that data analysis has become more advanced with the development of IT technology and AI.
Companies can now collect much more data than before, making it possible to turn customer behavior into data.
By utilizing data-driven marketing, it is also possible to predict future customer behavior from the collected data .
Data-driven marketing has made it possible to clearly see purchasing behavior that was previously difficult to see, and we no longer spend our budget on wasteful measures.
By being able to extract only data that is highly relevant to our own marketing, we have been able to select the most appropriate measures .
Introduction to Data-Driven Marketing Part 2 [Benefits of Using It]
data-driven-marketing-merit
Data-driven marketing offers the following benefits:
Improved ROI (return on investment)
Low dependency on individuals and high reproducibility
Improved customer satisfaction
All three offer advantages that traditional marketing does not have, and can be said to be methods that can solve problems that companies have faced for many years.
Improved ROI (return on investment)
ROI (return on investment) is an indicator that shows how much profit was made from the cost spent.
By objectively analyzing and comparing data from data-driven marketing, you can expect to improve your ROI.
By eliminating distracting thoughts (emotions) when making decisions, you can avoid ambiguous judgments and optimize your budget allocation.
Even just eliminating wasteful advertising operations will result in significant cost savings.
In addition, by converting past purchasing behavior into data and understanding it, effective upselling becomes possible, which leads to an increase in LTV.
Another benefit is that decisions can be made quickly because they are based on data.
Data-driven marketing allows you to achieve maximum results with minimal budget .
Low dependency on individuals and high reproducibility
Another major benefit of data-driven marketing is that it is less dependent on individuals.
Because decisions are based on data, they are less likely to be influenced by personal intuition or experience .
Data-driven marketing is based on data and does not rely on the abilities of specific people.
It is easy to accumulate successful experiences and know-how, and it is easy to share methods within a company.
As long as the data remains, even if the marketing staff changes, reproducibility will be high.
Improved customer satisfaction
Traditional marketing was heavily influenced by the convenience of the company and the marketer's inferences.
Data-driven marketing uses data to understand customer behavior and preferences.
This leads to an improved user experience (UX) because marketing strategies can be created that meet the needs of each individual . It is beneficial for both parties to provide information and purchasing experiences that meet the needs of customers
, rather than marketing that only seeks corporate profits .
Improving customer satisfaction can lead to increased repeat business and customer spending.
Introduction to Data-Driven Marketing Part 3 [Five Steps Required for a Strategy]
data-driven-marketing-process
Now that you understand the importance and benefits of data-driven marketing, we will explain the specific steps.
KPI Tree Design
Data collection
Data visualization and processing
Data analysis and strategy planning
Strategy implementation and effectiveness verification
Although it is data-driven (starting with data), it is not enough to just collect data randomly.
You should clarify the purpose and ultimate goal of your company's data-driven marketing efforts, and then use only the data you need.
1. Design a KPI tree
The key to data-driven marketing is to collect only the data you need.
Set intermediate goals, or KPIs, to achieve your final goal, or KGI . Designing
a tree structure with the KGI at the top makes the process clearer.
[Examples of KPI indicators]
Number of visitors to the website and duration of stay
Email newsletter open rate
Click-through rate of web ads
Number of inquiries
Number of document downloads
Rate of sales negotiations, etc.
If you do not set KPIs, resources will be wasted on collecting and analyzing data that is unrelated to the objectives.
KPIs must be quantifiable.
Designing them in a way that is easy for everyone to understand makes it easier to have a common understanding.
Don't forget to set a deadline for when you need to achieve your goal.
