Large corporate companies are using consumer data to design new marketing strategies. Have you ever wondered how significant these numbers are? With the marketing sector dominating solutions backed by data, people now rely on factual data to make decisions.
Surveys show that nearly 84% of businesses have improved their level of customer experience with strategies based on data-driven marketing campaigns and have recorded a significant increase in profit.
So let’s start with the basics: What is data-driven marketing?
In simple terms, data-driven marketing is all about converting data into marketing choices that are relevant and simple. Data-driven marketing is the result of predicting prospective consumer behavioral patterns based on the information extracted from the purchase history of customers.
One of the best outcomes of data-driven marketing campaigns is that the users are at the focus of the initiatives. Now, times have changed and all marketing strategies need to be supported with data. It is possible to design and implement marketing strategies that reach out to your target demographic, resulting in priceless trust and a devoted customer base.
Now that we have a better understanding of data-driven marketing, let’s take a look at the advantages it has to offer.
Data-driven marketing provides insights to businesses to identify prospective customers through the sales funnel more swiftly and cost-effectively. Furthermore, analyzing data helps businesses identify cross-selling opportunities that might not have been identified earlier.
Data provides businesses with insights and suggestions to keep the clients engaged after product purchases too. This post-sale interaction can lead to building a loyal client base that will be returning customers in the future.
By using statistical data, businesses can create products that are relevant to the needs of the customers. It increases the chance of commercial success and reduces the possibility of product attrition from the market.
With user data, products can be created with features and functions that would appeal to consumers. Data-driven marketing from a website or a mobile app redefines the insights of the conversation around what people expect of your brand and how to best provide it to your customers. Another important solution that comes out of this is problem identification. Such areas can be assessed and optimized for improved productivity.
All famous brands have made it a policy to pamper their customer base, ensuring that the message is received loud and clear by every individual with an element of personalized connection.
By advertising and marketing with data-driven strategies, businesses can accurately identify clients across different platforms and provide an exuberant experience. In addition to saving time and money, these approaches enhance the overall customer experience. Demonstrating to your audience that you are keenly observing and acting upon their actions and needs.
The first largest online bookstore in Denmark took up a data-driven strategy to understand and know more about what their customers wanted to read. The idea was to record consumer activity on their website and send them personalized emails. That resulted in a massive opening rate of 290%, the click rate increased by 12%, and they clocked an incredible 80% conversion rate. With this approach, they improved their business and customer experience.
There is ample evidence that data has the potential to improve the quality and quantity of a business. Using product analytics in marketing campaigns provides businesses with the leverage needed to identify quality leads and convert them into returning customers.