40% of companies claim that “Proving the ROI of marketing activities” is their top marketing challenge, according to a survey conducted by HubSpot.
As an increasing number of C-Suite demand marketing ROI, marketers are gradually ditching the immeasurable ATL efforts and are rapidly appreciating the highly-quantifiable digital marketing. Digital marketing, as we know it, has all the right reasons to be favored by most marketers. It is exceptionally cost-efficient since digital marketing efforts are highly-measurable, hyper-targeted, and as if those aren’t enough, most digital marketing solutions have the capability to provide customer data and analytics.
Although social media marketing first comes to mind when talking about digital marketing, posting on your social accounts isn’t enough to be at par with your competitors. Teradata perfectly said it, “Customers today expect—and demand—a seamless and relevant experience. They have grown accustomed to marketers’ knowledge of their preferences and anticipation of their needs.” This unequivocally explains why regular posting of the brand’s products and services is a far cry from what your consumers need. You have to determine your target audience’s behavior, preferences, and micro-moments – and be there when they want and need you.”
These demands from the C-suite and customers seem like a near impossibility. How do you achieve ROI while at the same time, satisfy your customers’ demands? There are just too many competitors with a bigger budget than you. How do you make sure you connect with the proper audience and get a high chance of conversion?
Let’s discuss Data-Driven Marketing
Data-Driven Marketing (DDM) is the process of extracting insights and trends from company-generated or market data and then translating it into actionable information. With DDM, companies can improve their processes and create campaigns that are laser-focused to the unique behavior and demands of their target consumers. When you create projects optimized by previous campaign trends and insights, there is an optimal chance to achieve ROI.
Here are some benefits of data-driven marketing.
1. Highly-customized Marketing
Individualizing content has been proven to truly engage customers. Through DDM, your brand can send out personalized campaigns. A study by Experian Marketing Services shows that e-mailing personalized product recommendations can spawn a 20% increase in revenues. Similarly, emails with personalized subject lines have 29% higher open rate and 41% unique click-through rate.
Apart from being highly-engaging, personalized marketing is also an excellent way to enhance the customer experience. Customers feel more valued when you call them via their names and when they are offered products and services that impeccably match their preferences.
To read more about email marketing, you may check Why Email Marketing Remains to be the King of ROI.
2. Micro-Moment Omnipresence
Consumers today are known to have an extremely short attention span which likewise correlates to their behavior when seeking information. They want it whenever and wherever they search it; and once disappointed, they abort and move to the next available option.
To avoid this instance, brands can leverage their data to distribute data-driven ads across channels where their target audiences are at. Brands can also automate marketing campaigns optimized by its previous trend reports. Through this, your campaigns are hyper-targeted only to those who actually need it and when they want it
3. Improved Services and Solutions
As the company continually uses a data-driven approach to marketing, it bridges the brand to a richer amount of customer knowledge. Once this data has been translated, it discounts the brand from product and service failures. Essentially, the brand produces what the target market desires leading the brand to be a top of mind among consumers.
Launching campaigns based on demographics has been a thing of the past. For your brand to achieve its marketing ROI, you have to know the core of the problem, pain point of consumers, their usual and alternative ways of dealing with it, and ultimately, know when to come in as a brand who is “here to help”. If you do this without creeping out your target market, then you’re on your way to having a pat on the back from your boss.
Stringfellow, A. (2017, June 9). WHAT IS DATA-DRIVEN MARKETING? A look at how data-driven marketing works, benefits, challenges, and best practices for implementing data-driven marketing campaigns. Retrieved from https://www.ngdata.com/what-is-data-driven-marketing/
Tjepkema, L. (2017, April 27) What is Data-Driven Marketing? Retrieved from https://www.emarsys.com/en/resources/blog/data-driven-marketing/
The Transactional E-mail Report. Retrieved from http://www.experian.com/assets/marketing-services/reports/transactional-email-report.pdf
The Ultimate List of Marketing Statistics. Retrieved from https://www.hubspot.com/marketing-statistics