Data-driven marketing can be a powerful tool in the age of technology. Accessing the right data, much like knowing your client base, can help you drive customer engagement and advertise more effectively.
It can take some time to make sure you are using the right data to inform your marketing strategy. Data collection can be overwhelming with so much online information. Let’s look at data-driven advertising and learn five practical tips to help you improve your marketing strategy.
Topics in a Glimpse
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- What is data-driven marketing?
- Accurate information is key
- Unique Data Offers Unique Advantages
- Targeting Niches V.S. Blanket marketing
- Integrate data collection and customer interactions
- Analytics tools are crucial for using the right data
What is data-driven marketing?
Data driven marketing uses and analyses customer data in order to better advertise small businesses and their products. Data-driven marketing is a marketing strategy that uses customer data to improve your small business and products.
Data-driven marketing also intuits the wants, needs and interests of your customers without them having to say anything. A survey, for example, can give you an idea of what your customers are interested in, but it’s more accurate than knowing what they need or which demographic they belong to. Data-driven marketing allows you to gain an insight into your customer’s lives, and create marketing campaigns that are accurate and tailored to their interests.
1. Accurate Information Is Key
If your data collection is inaccurate or incomplete, it will affect the effectiveness of your marketing strategy. Suppose, for example, that your company collects information from customers such as names and email addresses but must invest to find other relevant data. You could lose out on a whole area of data-driven advertising. Many customers will not provide this information.
data appending service can be used by businesses to supplement direct data from their customers. These programs help businesses ensure that they have accurate data to target their customers accurately. Data management and collection companies can boost business. This can be an important step towards using the right data for marketing strategies.
2. Unique Data Offers Unique Advantages
One way to find the best data for your company is to focus on exclusive and privileged data. Finding data sources that are not being used by your competitors but which apply to your company can be very beneficial for your marketing.
Location data is a good example. For example, if you know that your clients are in a cold climate you might focus more on marketing warm clothing. You may also learn to invest less in warm products if you have clients who live in arid or desert climates.
3. Targeting Niches V.S. Blanket marketing
You can use blanket marketing to increase brand awareness and reach a wide range of customers. However, it is important that you also target specific customer niches. While blanket marketing is a great way to increase brand recognition and reach a large number of customers, focusing on specialized areas of expertise, or specific customer bases (also known as Hyper-personalized Marketing) can help you service customers with lower competition.
Even if your customers are only a small percentage of the total, if you can monopolize a group, you will likely attract more customers over time than if you were to work in other niches with high competition. Customer data can guide you to the best advertising niche.
4. Integrate data collection and customer interactions
You don’t have to spend all your time collecting data. can help you multitask by integrating data collection into customer interactions. You can gather data by emailing receipts to customers.
You can use the same strategy to allow previous customers to leave comments on your site or to link customer emails with service tickets. You can collect passive information by overlapping services. This will benefit your marketing team. It is important for small businesses to optimize their energy, because they may not have the resources to dedicate an entire team to managing data. Double-up on data collection and interactions to save money and time without sacrificing a vital part of data driven marketing.
5. The Right Analytics Tools are Crucial for Using Data
You can only benefit from all the information you have if it is properly analyzed. Different information can be beneficial to your marketing strategy depending on your desired result. Imagine, for example, that you want to increase the number of customer interactions through email campaigns. You’ll have to give more importance to data in this case than you would if you were trying to reach a previously untapped niche or customer base.
Finding the right data analysis tool for your business is a difficult task. You can process data in many ways. Using all the tools available to sort through customer data will streamline your process. keeping separate information about your customers will help you sort data better and better understand your entire customer base. Some data sets are more easily understood when viewed as a group rather than as individual numbers. Be sure to balance the collection of targeted data and building customer profiles as both provide important information.
Check out our other articles if you want to learn more about small business strategies. We provide small business owners the tools for success at American SBDC. Check out our services if you are looking for a SBDC near you, or you want to find new and exciting ways of promoting your business.