Consumers are increasingly becoming mindful of the products they buy and the ads they want to see. If you wish to remain relevant and competitive, you need more insights into consumer preferences. The best way to get this information is through data collection. According to Forbes, over 40% of businesses are willing to allocate more money towards data-driven marketing.
What is Data-Driven Marketing?
Data-driven marketing refers to a strategy where you use information sourced from your customers optimise and target your product promotion campaigns. It is one of the popular trends among companies that do digital marketing in Singapore.
Marketers are now collecting data at every touchpoint to understand their audiences better. The data is then processed and used to predict future behaviours and make real-time marketing decisions. Some of the information that companies source from their customers includes, browsing patterns, online purchase behaviour, social media activity, and many other metrics.
The Best Data-Driven Marketing Strategies
If you are doing data-driven marketing in Singapore, here are the must-have strategies.
Use Demographic Data When Planning
When you are planning to launch a new marketing campaign, you should have some information about your target audience. Most marketers mistakenly believe that knowing consumer behaviour and tracking their social media activity is enough.
The information mentioned above is an excellent starting point. However, you need more data if you want to get more success from your marketing efforts. For instance, if you are planning to introduce a new product, you will need to know if your audience can afford it by studying their income levels.
Using demographic data such as income levels allows you to make your ads more contextual and relevant to the consumer. As a result, you can significantly boost conversions and increase sales.
Use Trends from Other Marketing Channels as a Guide
One of the biggest challenges in marketing is introducing a new strategy when what you already have is working. It seems risky to venture into new tactics when the existing ones are generating leads, getting conversions and improving sales.
The reality is that the data that is useful for other strategies can also work in data-driven marketing. For instance, you can use the findings from your SEO keyword research to improve other areas of your digital marketing strategies in Singapore, such as SEM and SMM.
Measure Success in Milestones
The current buying cycle is complicated, as the customer has to pass through many stages before they purchase an item. Your marketing campaign is only one of these stages.
When you market your product, you are making your potential customers aware of its existence. You need to go a step further and convince them that it will solve a challenge they are experiencing or add some value to their life.
As you optimise your marketing in Singapore, remember to monitor every step that the customer takes as they go down the sales funnel. This allows you to see the stage at which most customers are abandoning the buying cycle. With this information, you can optimise your campaigns further and become more successful. Even better, you cut down on wasteful expenses.
Assess the Impact of Industry Developments to Your Campaigns
As a marketer, you should always respond immediately to any industry developments. Data-driven marketing, like other niches of digital marketing, is continually changing. Some of the most recent developments include the use of AI in digital marketing.
If you get left behind, you will lose ground to your competitors and hurt your revenue.
In the case of data-driven marketing, you can keep up with changes by dividing your campaigns into specific time frames, say 60 days. Once this period elapses, you should examine the data and take note of any changes. For instance, you can look at the level of competition, number of engagements, and so forth.
If you notice any anomaly, you should come up with ways to correct it. The same applies to any external factors such as algorithm changes. You should modify your campaign so that it conforms to the latest best practices.
The Benefits of Data-driven Marketing
Data-driven marketing is gaining traction in Singapore because of its numerous benefits. That is why businesses are implementing novel strategies such as the use of AI in digital marketing.
Here is why many marketers are relying on data devise tactics for their marketing campaigns.
It Makes Personalisation Easier and More Effective
Consumer data allows you to segment your audience and create personalised campaigns that target specific groups. According to studies, personalisation increases the success of a marketing campaign significantly. The reason for this is that people are more likely to buy an item that is tailored to their needs.
Decisions are Backed by Concrete Data
When you start relying on data, you make better and more informed marketing decisions. Data collection show you who is likely to buy your products, the kind of content they like, and where to make improvements for your marketing in Singapore.
Clearer Customer Journeys
As mentioned earlier, the current sales funnel is way different from the way it was in the past. The availability of several digital channels means that customers do not follow a distinct path before they purchase your products.
A customer might find your business on Google, read reviews on a third-party site, get recommendations from social media and compare prices before deciding on whether to buy an item. With data-driven marketing, you can understand all the stages in the buying cycle and create content for each step of the process.
A Better Understanding of ROI
Data-driven marketing provides stats that measure the success of your marketing campaigns. You can easily track the performance of your email marketing, conversion rate optimisation and other digital marketing strategies in Singapore.
By knowing what is successful, you can eliminate unproductive campaigns. In return, you maximise your ROI.
Challenges of Data-driven Marketing
Similar to other marketing strategies, data-driven marketing has several downsides.
The first challenge is finding the right team for the job. It can be quite challenging to find the personnel who have the skills and expertise required to collect, process and analyse consumer data. The quickest solution to this is by enrolling in data science lessons.
Another challenge is conflicting data. The success of data-driven marketing depends on high-quality and integrated data, which is hard to obtain. If you have conflicting data, you will not be able to make informed decisions.
A lack of integration means that your data-driven marketing will struggle to collect the information needed for a unified customer view. For instance, e-commerce websites may find it challenging to obtain and structure data from handheld devices and social media.
Lastly, you need to be committed for it to be successful. Do not invest in data-driven strategies if you are not prepared to commit. Even if you have the right tactics, you will not succeed if you do not put enough effort.
In this age, you have to embrace data-driven marketing strategies to stand a chance against competing businesses.
With the introduction of new technologies such as AI, big data analytics and machine learning, the future looks bright from data-driven marketing. These will make it easier to collect data from customers. In exchange, consumers will expect to get more personalised experiences from businesses.
Call us today at +65 6789 9852 for more tips on how to do digital marketing in Singapore.