Data-driven marketing includes strategies built around the analysis of data points that are collected through client engagement. This analysis forms predictions about the client’s future behavior and extrapolates the ideal point of reception.
Two things must occur for data-driven marketing to succeed:
- You must collect the data needed for analysis.
- There must be a marketer who understands the data and can organize, analyze, and develop a plan for capitalizing on it.
Here are some mind-boggling facts regarding how data-driven marketing is being used in the corporate world.
- 42% of businesses surveyed claim to have a dedicated internal marketing analytics team
- 92% of those same companies feel data management is a top priority for them
- Yet, only 8% send out any sort of personalized communication to their clients
It appears that senior marketers know that data-driven marketing is important. They just don’t have the resources or the skill set to take advantage of emerging tech. Yet, with the rapid changes in AI technology, marketing plans must focus on data-driven, customer-focused, and measurable strategies.
Potential Benefits and Results
When you implement a marketing plan that is backed by data and you’ve engaged with the leads multiple times prior to contact, the chance of successful conversions grows exponentially.
When you’ve gathered the crucial data prior to contacting a lead, you can develop a deeper understanding of your customer profile. The message you deliver is the right one, delivered at the right time. This essentially eliminates the “cold call.”
Marketers use data to reach potential clients on multiple channels. Email, ads, and retargeting engage a targeted audience many times before they receive personal contact. These multiple touchpoints foster brand recognition and “warm up” a lead, so the “cold call” becomes a thing of the past.
How Brands Fail to Leverage Data
Despite the obvious advantages of data-driven marketing, many firms fail to utilize it properly. A new report by Jaywing, a digital agency in Britain, found that most companies lack the vision to fully take advantage of the opportunities afforded them with these methods of engagement.
- 82% still use single touchpoint marketing
- 65% of marketers only use basic personalization in their communications
- 61% rate their CRM as their most important asset
- 23% of marketers rate data gathering as their least important skill
The Challenges Faced By Businesses
Hands-down the biggest challenge to data-driven marketing is a lack of resources. Not only does data analysis require someone who sees relationships and can postulate future behavior, it also requires man-hours that many businesses cannot spare. For that reason, many companies have begun partnering with marketing companies that specialize in this type of data-driven customer engagement. The marketing agency targets qualified leads, then engages with them on multiple channels, and gathers data. That data is then analyzed so that when the lead has reached the perfect moment of receptivity, they are passed along to the CRM for contact by the sales team.
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