Data-Driven Marketing is nothing more than a data-driven marketing strategy. This concept mainly involves making decisions based on real indicators, using mathematical algorithms and statistics. It is characterized by being different from deliberating based on empirical facts, that is, without scientific or theoretical proof.
One of the most important advantages of digital marketing is the ability to determine solutions before making decisions. However, in actions such as a campaign, there are millions of combinations of indicators generated and, in a common analysis, few are really used. Data-Driven Marketing fixes just that.
The main objective of this strategy is to use the data already available to generate more traffic and leads, in addition to reversing what is not adequate, encouraging what is generating results, and getting a basis for new actions. Follow the steps to use this strategy in your project.
8 Steps to Run a Project Using Data-Driven Marketing
Next, we will define the necessary steps to adopt this strategy.
Step 1: Set the goals.
Step 2: Determine the metrics that will be evaluated.
Step 3: Establish how the extraction and presentation of these metrics will take place.
Step 4: Decide a date for the metrics to be analyzed.
Step 5: Use AI to validate collected data and generate insights.
Step 6: Analyze the insights and make decisions based on them.
Step 7: Track and adjust the metrics until they are accurate.
Step 8: Start the entire process over.
What is Data-Driven Marketing?
In addition to adopting new tools, such as Business Intelligence (BI) solutions, there is also a Data-Driven culture that works with process review and knowledge gain.
Data-Driven means using a lot of collected data to create actions So, without this tool, it is common for decision-making to be based on personal preferences, even with precise numbers and data. Data-Driven serves precisely to follow a path other than individual preferences.
Therefore, it is a base formed by a lot of data, which are collected, processed, and analyzed with the objective of generating insights in the companies.
Why use Data-Driven?
Data-Driven solutions are a set of tools, software, and methods that make it easier to store and interpret data, turning it into very important information.
Taking this concept into account, you will have management based on science and data analysis, which is much more efficient than that based on experience or intuition.
As an example, we have a person who it easier to use Facebook and more difficult to use Instagram. This professional will have a tendency to encourage more the use of the media he is most adept at (Facebook).
It may also happen that the individual believes that, because he has more facility with certain media, his target audience will also have it. Based on this, he makes such media the center of digital his strategy. These are two mistakes that Data-Driven Marketing tries to avoid.
What are the principles of Data-Driven Marketing?
Implementing a culture involves several principles. Next, we will list them.
To apply Data-Driven Marketing, it is necessary to invest in:
To achieve triumph in this entire process, we must persist and have confidence in its evolution.
What tools are used for Data-Driven digital marketing?
There are some features that Data-Driven Marketing needs to deliver information and evolve. Are they:
- Big data;
- Speed and processing;
- Mathematics and statistics;
- Smart indicators;
- Usability and Design to display results.
11 most common tools in companies for data analysis:
The most used tools for analysis in Data-Driven Marketing management are:
- Google Analytics;
- the SEMRush;
- BI tools;
- AI tools such as Adverity Marketing Analytics;
- the Google consoles;
- e-commerce platforms;
- the CRM;
- Google Ads;
- automation, email, and lead tracking tools;
- Facebook Ads;
- Google Data Studio.
All of the platforms listed above are essential for digital marketing because they have created new technologies and unique features that are increasingly important to Data-Driven.
What are the limitations of these tools?
Despite all these advantages, technologies also have their limits. Among them are:
- isolated data disposition, with Google Ads, for example, being a very universal platform;
- the high cost. Platforms like Google Data Studio and BI tools charge an additional expense for each channel they integrate;
- the lack of data interpretation;
- the excess of non-relevant information, which ends up taking the focus away from the main objective;
- the lack of important digital marketing indicators;
- the requirement of experience to compose complex reports, that is, the complexity of the tools.
That said, we note that these tools have all the potential for detailed publication data analysis, but are less effective when it comes to a quick understanding of a scenario and more accurate decision making.
Therefore, some solutions for Data-Driven Marketing to adequately fulfill its role will be presented below. Follow up!
How does Data-Driven work in marketing?
Much of the data collected by companies is related to the actions and behavior of consumers, so marketing ends up being the area that benefits most from this management.
After having access to important information about the market and target audience, professionals develop more accurate campaigns and strategies, in addition to keeping up to date with trends.
Through the data, it is possible to get to know the consumer better, in addition to their needs and pains, and thus, improve the solutions offered and the promotion and dissemination actions.
What are the advantages of Data-Driven marketing?
There are numerous advantages to involving Data-Driven in marketing work. Some of them are:
- Optimal consumer segmentation
- To develop better strategies and channels for the public, nothing better than segmenting it. Data-Driven is capable of doing this intelligently.
- Creating the most relevant content
- The data also reveals the most relevant content to the audience and is able to drive the message of marketing efforts.
- The possibility to conduct A/B tests
- Through Data-Driven, it is much simpler to conduct and elaborate A/B tests, with the possibility to modify any variable and thus prove a more efficient strategy in the middle of the data.
- Full integration with sales
- The sharing of data provides the integration between marketing and sales and thus creates a full artificial intelligence center.
- Sophisticated customization
- The more data marketing has about the consumer, the better the personalization of content, actions, and campaigns will be.
- An improved consumer experience
- Knowledge is the best tool for an unforgettable experience, designed individually for each audience.
What are the solutions for Data-Driven Marketing to work well?
In addition to the aforementioned fundamentals, Data-Driven must perform the following functions:
- synthesize the main indicators and unify the channels;
- calculate metrics and variations, performing additional work to data analysis;
- highlight the key information and data most important to the user, as well as their priorities.
All indicators, for the user to have good visibility, must be presented in an intelligent, practical, and objective way. In addition, they need to be affordable and with low implementation complexity.
How to apply Data-Driven Marketing in my company?
To apply this concept to your institution, you first need to extract and analyze data from a variety of sources, turning all the information you collect into rich, business-useful material. This analysis takes place through the aforementioned tools and through social media, market data, consulting, among others. After preparing the collection process, the data are integrated so that they do not become totally disconnected information.
For this reason, Data-Driven management involves ensuring collective access to data through intuitive dashboards. Through them, managers gain access to complete reports that are great allies when solving any problem. Furthermore, it is essential to ensure that professionals have the necessary knowledge to interpret and apply the data obtained, as it makes no sense to have complex reports if no one has the ability to read them.
To help structure data intelligence, companies can hire an expert for the role of Chief Data Officer, or CDO. This data scientist will be very important to the team because he will take care of the entire process of training, administration, and management of the data stored and produced by the company. The work of this professional is essential and decisive to encourage Data-Driven management, as it is a current profession in the market, which is always aligned with the latest trends.
Data-Driven offers the possibility to use data to see reality, from math and also from AI, and not from personal opinions. It is a cultural activity that demands time and effort, but which brings a great reward in the end, all guided by technology, which is increasingly present today.
We at MadeinWeb are specialists in digital marketing and Data-Driven Marketing. So if you want to know more, visit our website or chat with one of our experts.