Data—a friend or foe of efficient marketing?
Data is everywhere. Internet users produce millions of terabytes of data every day. When you know how to use that data, it can be a treasure trove.
Every person on the Internet leaves a digital footprint. Based on that trace, a person equipped with the right tools and knowledge can tell much about the one who left the footprint. Namely, it can include preferences, purchasing behaviors, demographics, political views, economic conditions, etc.
Sidenote: Artificial Intelligence (AI) can help marketers make data a friend. Many companies are already doing that, and the AI in marketing market size directly represents that (see Fig.1).
In turn, the improper use of data can lead to significant financial losses and ethical concerns, making it crucial to harness its power wisely. At this point, it is vital to have a delicate balance. It means making sure the data marketers create benefits for all the parties involved.
In this piece, we explore whether this win-win situation is possible. So, stay tuned.
How and where can marketers use data?
Here are some of the most common use cases for data in marketing:
1. Targeted campaigns
Data enables marketers to create highly personalized campaigns. Businesses of all sizes use targeted messages that resonate with their audiences.
Imagine you own a small online bookstore. You collect data on customers' reading preferences, purchase history, and browsing habits. With this data, you notice that your customers frequently buy mystery novels.
2. Customer insights
Understanding customer behavior is crucial for effective marketing. Data reveals customer preferences, purchase history, and interaction patterns, allowing businesses to tailor their offerings and communication strategies.
Returning to our bookstore. Based on the analysis done for targeted campaigns, you also discover that customers tend to buy books from certain mystery sub-genres, like psychological thrillers and detective stories. Using this insight, you create personalized newsletters and recommend books that fit these sub-genres, leading to more targeted and engaging marketing efforts. This tailored approach boosts customer satisfaction and loyalty, driving repeat purchases.
3. Predictive analytics
Experts with predictive analytics use historical data to forecast future trends and customer needs. This capability helps marketers anticipate market changes and make informed decisions aligning with their business goals.
Finally, in your bookstore, you have pretty good marketing capabilities and data analysis tools coming with your small business, you use predictive analytics to examine past sales data and seasonal buying patterns. The analysis reveals that sales of mystery novels spike during the fall and winter months.
Anticipating this trend, you start preparing in late summer by stocking up on popular and new mystery titles. You launch a fall-themed marketing campaign highlighting these books and offering early-bird discounts. When the season arrives, you're ready to meet the increased demand, ensuring that your customers find the books they want and boosting your overall sales, thanks to the foresight provided by predictive analytics.
Those are simple examples that can be applied across businesses of different sizes spanning many industries.
If you want to examine evidence proving the points above, please visit this article.
When data might be your peril rather than a friend?
While data can greatly enhance marketing efforts, improper use can lead to major issues. Many companies struggle to use data effectively.
Here are some common pitfalls:
Disconnected data
Data often gets stuck in different departments, leading to fragmentation. For example, sales data might not be shared with marketing, preventing a complete view of customer behavior. This results in missed opportunities and inefficient marketing strategies.
Untimely data usage
Timing is crucial in marketing. Delays between data collection and use can mean missed opportunities. For instance, if a bookstore collects data on customers’ interests but waits too long to act on it, a promotion on popular mystery novels might become irrelevant.
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Bad data quality
Inaccurate or inconsistent data can harm marketing efforts. Imagine sending personalized book recommendations based on incorrect reading preferences. Reliable and accurate data is essential for meaningful insights and successful campaigns.
Complicated data integration
Combining data from various sources can be challenging. For example, integrating online purchase data with in-store sales can be difficult without proper IT support. This complexity can delay marketing campaigns and reduce their effectiveness.
How do you make data your friend in marketing?
In short, it is all about tools and methodology. In total, here are the moments to consider:
Unification
Salesforce Data Cloud can help you deal with common data-related challenges. Due to its centralization, one can get rid of data segmentation. With the technology, you can have a comprehensive view of customer information. As a bookstore example shows, such information can be a treasure trove of marketing insights.
Instant access
Instant access to data enables swift adjustments to campaigns based on current trends and customer feedback. According to McKinsey, companies using real-time data are 23% more likely to attract new customers.
There are more ways to make data your friend in marketing. If you want to look at them, please visit this piece.
Here comes the buzzword—AI
Artificial Intelligence (AI) transforms the marketing landscape by enhancing data analysis and customer engagement. Here's how AI is making a significant impact:
AI boosts marketing efficiency and enables more personalized and effective customer interactions, leading to significant business growth.
Data is the biggest friend.
To say in biblical terms, data is omnipresent. But, it’s not the ultimate goal of marketing. When used correctly, it becomes marketing's most powerful tool. You can get acquainted with your customers. You can look deeply into what your customers want and desire. The best part is that you can fulfill those desires while simultaneously boosting your business.
Using data correctly. Tapping into AI. Getting familiar with Salesforce. Those all bring us closer to a win-win situation in a buyer-seller relationship.
For a deeper dive into data-driven marketing, check out our whitepaper: Data-Driven Marketing Revolution.
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