Data is as valuable as currency, especially in this era. With the current advancements in technology, digital marketers find themselves coupling data with creativity. Data in marketing isn’t just about gathering and monitoring information. Instead, it’s about recognizing patterns and transforming that information into actionable insights and strategies. These strategies can make or break marketing efforts. To put things into perspective, we once had a client who was impatient with gathering data and making decisions based on the data gathered. Fast forward a couple of months after convincing this client to persevere, we now see significant results in their ROAS, Cost-Per-Lead (CPL), Cost-Per-Click (CPC), and their reach, which led to increased profits and brand awareness. This is why we’re going to dive into how data is used in digital marketing as well as the current trends associated with data in digital marketing.
How data is used in digital marketing:
1. Improving Customer Insight
Consumer behavior and preferences are as complex as they come. Every individual is different from one another, but data lets us uncover similar patterns that relate every individual to one another. From these patterns and trends, digital marketers can obtain actionable insights and develop targeted marketing strategies.
2. Targeting and Segmentation
In any marketing effort or campaign, segmentation and targeting plays a crucial role. With data, it allows digital marketers to segment and target more precisely without functioning on assumptions and beliefs. With precise targeting comes personalized marketing messages that resonate with regular people on the other side of the screen. For instance, you can make targeted advertisements based on multiple marketing angles that regular people resonate with based on the data you’ve gathered.
3. Monitoring and Evaluating Campaign Performance
Digital marketers have cracked their heads trying to figure out what marketing efforts are worthwhile and identify the ones that are useless or a waste of time. For instance, with data, marketers re-allocate resources to the strategies that are working and/or pivot to strategies that give them the most results. Without data, it is almost certain that valuable time and resources will be wasted in the hopes of making a failing campaign or strategy work.
4. Predictive Analytics
Time is one currency that is impossible to earn back. By utilizing historical data, it allows marketers to predict future behaviors and trends, which saves them more time and effort. Additionally, it allows marketers to react faster than their competitors. Historical data gives marketers an insight into how customers would react to different marketing tactics. Some forecasting is as clear as they come, but most predictions require a significant amount of historical data to form a basis for those predictions.
5. Automation and Personalization
Artificial Intelligence (AI) is becoming more and more used in our everyday lives, and we cannot deny that it makes all our lives easier. Similarly, it can also make your work easier and less repetitive. Incorporating data with AI can help digital marketers automate repetitive tasks that take too much time out of their day. Let’s take Meta’s Dynamic Creative Testing (DCT) as an example. DCT lets Meta test what combination of ad creatives, primary text, headlines, and descriptions works better for your campaign. It also allows media buyers to test several marketing angles that resonate with their target audience. Another example is WhatsApp automation. WhatsApp automation allows for a more seamless method of initiating contact with leads/clients. We partnered up with respond.io to incorporate WhatsApp automation with our clients to eliminate the tediousness of initiating contact with leads/clients.
6. Customer Journey Optimization
Ensuring that the pathway of your customer leads to a profitable outcome for you is essential in marketing. Data allows for precise mapping and tailoring because it helps digital marketers identify and understand the touchpoints that lead to conversions and increased retention rates. As we all know, retaining a customer is cheaper than acquiring a new one, data helps marketers achieve just that.
Current Trends in Data-Driven Marketing
AI and Machine Learning
The hype around AI isn’t going to die anytime soon. AI tools are being used everywhere now and it certainly makes a difference in digital marketing.
Videos and Visual Data
Let’s be real, our computers and smartphones are the new TVs. TikTok and Instagram have successfully made people dependent on video and image content. That puts more emphasis on utilizing videos and image data for marketing.
Conclusion
Data is used in marketing to:
- Improve Customer Insight
- Targeting and Segmentation
- Monitoring and Evaluating Campaign Performance
- Predictive Analytics
- Automation and Personalization
- Customer Journey Optimization
By taking data-driven strategies into your stride, marketers can thrive in an increasingly competitive digital landscape.