Posted On 02 Dec 2020
Marama Carmichael

Using customer data allows you to find more people interested in your product, shows you how to reach them and gives you tactics that will convince them to buy. As marketers, these insights help us develop Personalised Marketing Strategies that are designed to achieve the highest possible return for your business!

In a perfect world, every customer you reach would be interested in your product. But if you take that approach in your marketing efforts, you’ll quickly find that you’ve wasted your time and (more importantly) your hard earned money. That’s why data-driven marketing is so important!

What is data-driven marketing?

Data-driven marketing uses information about your customers to gain a better understanding of their needs, wants and desires. Most importantly, it can be a very powerful predictor of future behaviour. These insights allow target markets to be reached quicker and enables the buying experience to be enhanced. Resulting in more sales for you!

Why is data-driven marketing important?

Every customer has their own individual motivations and targeting as many as possible gives you a greater chance of making a sale.

Sounds easy enough, right?

But what if you’re targeting customers who can’t afford your product? Or you’re selling older discounted products to a market that is only interested in the latest tech or gadgets. Using customer data correctly is not just about finding a market for your product, but finding the RIGHT market. You need customers who not only have the will, but the means to buy from you.

How do you use the data?

You can use the data you collect in several ways:

  • Campaign effectivity – If you are running several marketing campaigns, you can see quickly which ones are and aren’t working for you
  • Geographic location – By knowing the area and season you are marketing to, you can change your advertising accordingly
  • Past purchases – By analysing past purchases you can get insights into future behaviour
  • Search analysis – By analysing user activity on your website or keyword searches you can identify trends as they’re happening

How do you implement a data-driven strategy?

Of course, none of the data matters if you don’t have a proper strategy to use it:

  • Collection – Source data from as many touchpoints in the buyer’s journey as possible, whether it be online or off. Digital data provides the majority of wealth these days as people migrate online for more and more purchases.
  • Goals – Set specific, measurable goals, so you know if your strategy is working
  • Motivations – Define your long-term reasons (new customers, more repeat business, etc.), so you can specifically target the plan
  • Dump irrelevant data – Too much data is as bad as too little. Get rid of the information that does not match your marketing vision
  • Automate – You’ll never be able to keep up with all the incoming data or spot trends in it like an automation tool can. Invest in tech that will do the job for you and reap the rewards
  • Collect the data – Whether it’s coming in real-time or you are purchasing it from a third-party source – use it right away. The data from yesterday may be no good tomorrow.
  • Assemble a team – You will need a team that knows how data-driven marketing works, and we can help!

Oracle Tree is all about helping businesses grow, and using customer data is one of the key ways we do this! By using our experience and correctly marketing your product, we can broaden your business’s scope and help you succeed. If you are interested in data-driven marketing and how we can help you, click here.

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