There are many strategies you can use when it comes to a company’s marketing efforts, one of which is data-driven marketing. With so many marketing strategies, the question arises what is the difference between Data Driven Marketing and existing marketing strategies? Then what is the difference?
To answer your questions about the world of marketing, We will specifically address what data-driven marketing means, from the importance, benefits, and implementation strategies to the challenges faced in implementing data-driven marketing. Make sure to read the article till the end to get the complete information.
What Is Data Driven Marketing?
Data Driven Marketing is a method in a marketing strategy that aims to optimize communication between business owners and consumers. Data-driven marketing uses some information from customers as a business reference to get an effective marketing strategy.
Data-driven marketing generally uses some customer information such as age range, geographic location to income level. This information makes it much easier for the company to determine marketing goals or marketing objectives so that marketing can be done efficiently.
3 Benefits of Data Driven Marketing
There are several benefits that you can experience when implementing data-driven marketing. Here are many benefits you should know about data-driven marketing.
1. Can Know Market Needs
The data-driven marketing method is very helpful for businesses to know the needs of consumers. This is because the data-driven marketing method uses information from customers to determine the right marketing location and how much of their product or service is targeted.
2. In Return for Decision Making
Customer information used in the data-driven marketing method can be used not only to determine market needs but also by companies to make business development decisions.
Judgments can be made by analyzing the data or information obtained, and considering all possible options. This can help companies determine business development steps appropriately and efficiently.
3. To Analyze Product Sales
In addition, the Data-Driven Marketing method can also be used to analyze used product sales. Data in the form of numbers from sales results are then analyzed through mathematical calculations and then combined with the data-driven marketing method.
The results of these calculations can later help the company figure out how much profit and loss the company is making on the sale of the product it produces. Therefore, the company can determine the right steps to take to market the products it manufactures.
3 Ways for Data Driven Marketing
There are several ways in which you can implement data-driven marketing. Here’s how to implement data-driven marketing that you can do.
1. Identify Data
Data identification can now be done with a lot of help from analytics platforms. But even from the results of analytics, you can say that it is very specific. However, this level of specification is still too general. Make sure you specify further and tailor it to the needs of your business.
2. Create Planned Ads
Create an attractive but well-planned ad. You can recycle ads in a planned way to keep customers coming back to you. Also, returning customers in different periods provide different data results over time. You can use third-party services for Google Ads services.
3. Choosing The Right Channel
Choosing the right channel is one way to implement data driven marketing. The right channel depends on the goals and characteristics of the business. However, apart from these two things, you need to choose a channel that has more potential to reach many people so that your ads will be noticed by many people.
3 Things That Become Data Driven Marketing Challenges
Aside from the benefits that data-driven marketing can offer, you also need to know what challenges you’ll face when implementing it. Here are some data-driven marketing challenges you should know about.
1. Data Validation Challenges
When you apply data using data-driven marketing, the challenge you face is validating or authenticating the data you collect. Even if digital marketing is in place, you can easily collect data. However, sometimes the authenticity of the data can still be questioned.
In practice, there is still a gap for any user or customer who enters data at will, where the data collected is inappropriate. Therefore, this gap is a challenge for you in implementing Data-Driven Marketing.
2. The Requirement to Withdraw and Update Data Every Time
The number of subscribers you can collect can be very large, even reaching millions or more. Moreover, the digital marketing base makes it very easy to collect data at any time.
You need to store this data with new data appearing anytime to update your business database. If you only use the manual method. Maybe it will be hard and tedious work. Therefore, make sure you have tools that can facilitate such work, such as a marketing dashboard.
3. Overcoming Silo Issues
Data-Driven Marketing also has challenges related to silos. What are silos? Silo is a situation where you or a department of the company cannot access data from other departments to ensure smooth business development.
However, if you experience a challenge like this, it doesn’t mean there is no way out. You can still solve this problem by creating a data warehouse that can be accessed later in one place.