The State of Data-Driven Marketing and How to Use Data to Fuel New Revenue Streams
Marketers are embracing data-driven marketing like never before. Data has the potential to be a marketer’s most valuable resource. With the right data insights, brands can better understand consumers, provide seamless brand experiences, and create personalized campaign strategies to generate higher revenue.
Unfortunately, despite the enthusiasm to become a data-driven enterprise, many brands lack the knowledge or resources to fully execute on strategy. According to research from Allocadia, when survey respondents were asked which statement best described the state of their company’s marketing and sales measurement data, 40% indicated that “it’s a challenge right now, but we’re starting to clean and reformat it.” Another 9% noted that “it’s silo’d and messy – ultimately not useful.” Only 8% stated that their marketing, sales and finance data exist in one warehouse to act as a single source of truth.
In another report by eMarketer, outdated data tools ranked as the number one reason causing wasted time on data efforts.
In order to reach consumers with relevant messaging and across multiple touchpoints, brands need to implement strategies and technologies to integrate data silos to form a single source of customer truth. This means understanding what matters most to customers, which messages are most apt to drive further engagement, their channel preferences, and other insights into behaviors.
When a single source of customer truth is established, brands can then create tailored experiences to drive conversions.
Goals of Data-Driven Marketing
In a recent survey on data-driven marketing by BlueVenn, real-time personalization is a top priority for U.S. marketers. Nearly 40% of US marketers surveyed in February 2017 said they expect to implement real-time personalization over the next five years.
And the good news is that CMOs are investing more budget to help them achieve a data-driven culture.
Putting Your Data to Work
It’s not just enough to collect data unless there is a good framework in place to analyze it and put the insights to work. The end goal of data-driven strategies is to ultimately better understand and target your key audiences. In order to efficiently do this, the right technologies can make all the difference. Of course, choosing what to implement can be a bit overwhelming when considering the numerous technologies available to marketers today.
Almost 70% of senior executives say they expect to spend more money on marketing technology in 2017 than they did in 2016, according to recent research from Conductor.
38% of respondents said their company uses 6-10 marketing technologies and 24% stated that their company uses 10-20 technologies.
The pay-off of investing in a strong data strategy is well worth the effort. According to the report Big data: Forging corporate capabilities for the long-term, “more than 35 per cent of respondents with a well-defined data strategy reported stronger financial performance than their competitors.”
Most marketers today are more than familiar with the concept and need to be data-driven. Marketers must first look into their own internal data sets – first party data is the most valuable place to start, but in today’s fast-paced and competitive landscape, marketers must also utilize third party data to gain an in-depth view of consumers across the customer journey. The combination of both types of data can tell a marketer who their customers are, what they have purchased, what they may purchase next, which channels to reach them on and what offers will be most appealing.
Consumers are constantly leaving clues into their preferences, what they may purchase next, and insights into their purchasing behaviors. Other types of data that marketers need to add to their data mix include:
Social Media Data
70% of companies are still not collecting data from social media channels. However, brands plan to invest more in social data collection, with 47% of marketers saying that social channels offer the greatest opportunities. According to the DMA SFB, social media will grow to 24% of marketing budgets within five years, up from 10% today.
As we know, consumers today are more connected than ever to their mobile devices. They keep their mobile devices nearby, check them frequently, and occasionally use multiple devices at once. But what do they actually click on, download, explore, peruse, and avoid on their mobile devices? Tracking data based on actual consumer action helps to further demystify consumer mobile behavior.
DMPs can serve as a powerful tool for data-driven insights that can enhance your ability to reach your ideal consumers. Invest in a DMP or maximize your current DMP’s capabilities to integrate your CRM data with third-party data to create deeper customer insights for your marketing campaigns.
When marketing is driven by deep and actionable data insights into customers and prospects, resource allocation is improved, marketing strategies are more efficient, and ultimately brands can deliver a more customer-centric approach to marketing.