One of the key aspects of business success in the modern age is knowing what your customers want. Fortunately, there are many tools that marketers today can use to capture information at different stages of their marketing campaigns. For this reason, the days of mass and untargeted broadcasting are now over.
Today, marketers can achieve accurate targeting thanks to the fact that customers rely on mobile devices to stay connected. For this reason, marketers need to put a lot of effort into data-driven marketing.
What Is Data-Driven Marketing?
Data-driven marketing is a collection of strategies built on insights pulled from the analysis of big data. The data is collected from consumer engagements and interactions to form predictions about their future behaviour.
With that said, this type of digital marketing includes the data you already have, how to organise and analyse it. Marketers also need to know how to apply it for better results from marketing campaigns.
Data-driven marketing can be used for a variety of reasons, but the main objective is to enhance the personalisation of the customer’s experience.
Benefits and Challenges of Data-Driven Marketing
Not only is data-driven marketing beneficial to an organisation, but consumers too can gain a lot as well. When the ensuing strategies are used appropriately, the following benefits are possible:
- Clear-cut clarity to understand and determine the most accurate and actionable information about existing and potential customers
- Personalised marketing to the right audience at the right time
- Marketers can leverage the information to extend the reach of their marketing campaigns across multiple channels
- Refine customer experiences
- Improve product development by reducing product failure rates
With that said, data-driven marketing faces a variety of challenges. The main struggles that marketers face include:
- Automating and integrating the data into marketing strategies
- Collaboration between teams and different departments
- Monitoring the changes in the industry such as what the competition is doing
- Continued measurements of the market strategies to see how data-driven marketing is working
What Should Singapore Marketers Do
Having looked at what data-driven marketing is, it is necessary that digital marketing executives know what to do and how to implement it in their marketing campaigns. Here is what Singapore marketers do:
Implement a Data Strategy
It is impossible to jump into data-driven marketing without having the data. For this reason, Singapore marketers start by creating and implementing a data management strategy to leverage the available data.
A data strategy needs to start with a change in the organisational culture. This means a shift from a culture of having a lot of data to one which manages data appropriately. More so, the change must regard data analytics very highly.
This change needs to begin with the top management of the business to ensure that new initiatives have the necessary business support. After this, marketers need to push for a data-awareness culture at the ground level. This is because, if there are no analysts, then the insights will not be available.
For this reason, organisations need to upgrade their infrastructure and systems. This needs to be done after the cultural change; otherwise, there is a risk of investing in expensive systems that no one knows how to use or motivated to implement.
This way, the Singapore marketers are in a better position to collect data, analyse it and improve the marketing performance with data-driven insights.
Looking For Data Use Opportunities
Singapore marketers are always on the lookout for ways and opportunities that the data will improve their marketing processes. For example, retargeting is one of the ways that businesses could use web data to improve their performance. Using well-organised data will ensure that there are much better results.
One of the ways that marketers can identify opportunities for using the data is by using a phenomenon known as attribution modelling. The model can be adjusted every so often to include new data.
Moreover, data-driven marketing is one of the best ways that they can learn about their customers, both existing and potential. This includes website behaviour; ad clicks, and purchase history, which shows the marketers what the consumers care about right from the top to the bottom of the sales funnel.
Identifying the Challenges of Data-Driven Marketing
Maintaining a data-driven marketing culture is not easy. When used to improve marketing practices and strategies, some problems and challenges will arise. For starters, no matter how well an organisation collects data, it will not always be complete regarding the customer’s journey.
With the continually changing customer journey, marketers find it a challenge to connect the dots between the marketing campaigns, the research on the website, and when they make the final purchase.
Data silos also keep on cropping up, and as offline brands start adopting online distribution and implementing new systems, marketers should not take data sharing for granted. On the other hand, marketers with well-developed data strategies are often faced with data governance issues.
This will call for marketers to know the source of the data, how it was captured, and the intended uses. Moreover, there is a risk of over- and under-investing in digital marketing in less-measurable yet effective offline marketing channels respectively.
With that said a focused data-driven organisation should always be aware of the risks above and take proactive measures to mitigate the problems arising from the risks.
Data-Driven Marketing Strategies
Irrespective of the data sources, it is essential that marketers make the proper judgement calls in their targeting and optimisation strategy. The best way to implement data-driven marketing strategy is to learn from what others have done and cultivate your own best practices. Here are 5 of the best data-driven marketing strategies for inspiration:
Use Demographic Data in Campaign Planning
If you are looking to upsell a new product idea to your most significant customer segment, and you have generated in-house data on your customers based on their behaviour, but are missing a few details, you could use the publicly available datasets to connect the dots.
The result is that you will get more contexts in your targeting and retargeting campaigns. You will be about to get more insights into the customer’s spending habits and their household income that will dictate their spending habits.
Use Trends to Inform Your Multi-Channel Marketing Campaigns
This strategy ensures that you do not start a new digital marketing campaign with a blank slate. The most challenging aspects of marketing are in the testing. For starters, it is risky testing a new channel from scratch, especially if you do not have a proven acquisition, engagement.
Maybe you might also be doing very little marketing, and you feel the need to start from scratch. Unfortunately, you cannot afford to start from scratch. Trends from one channel can help you kick start a campaign on a different channel.
For example, you can use PPC data to optimise your web copy for SEO. While you might have a variety of keyword tools, the data from your PPC campaigns will learn about the actual search volume and the best combinations by reviewing the keyword query report. This is arguably the best estimation tool to tell you whether it is worth the effort to pursue your intended keywords.
With that said, it is a human being on the other side of the screen, and they will harbour values and perspectives spanning multiple channels. This way, you will be able to connect with your current and potential customers for better results.
Measure Success as a Series of Small Steps
Modern internet buying cycles are not as linear and direct. The cycles are complex, and your digital marketing campaigns might be a mere touch point and not be the deciding factor. However, most marketers have limited resources to invest in proper data-driven marketing strategies.
The trouble comes in the form of getting unique results for every step a user takes. This strategy ensures that you can diagnose the problems and explain trends more effectively.
Use PPC to Get More from Your Email List
Email brings the highest ROI of all marketing channels. It calls for you to improve the channel by adding more touch points. This strategy ensures that you increase the likelihood of your message being opened and read by the people in your emailing list.
The thing is that you should not be apprehensive about casting your net wide and the data will help you in doubling down to get the most pout of your best segments.
Assess the Impact of Industry Changes on Your Campaigns
Changes in the industry can have a significant impact on your campaigns. For example, when Google removed the right-side ads from the SERP, everyone was freaking out. However, it requires that you be proactive in testing the effectiveness of your campaigns to ensure that you invest in the proper strategies. This way, you will be able to respond to the changes efficiently and effectively.
Data-driven marketing is a sure way of understanding what your customers want and how to appease them. Moreover, if you can rise above the challenges, you will be on hand to achieve better success through personalised customer experiences.
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