Data-driven marketing: Why effectiveness matters more than ever before
Effective marketing involves the tracking, measurement and analysis of data, and it’s arguably the most valuable tool that today’s marketers can access. We have more data available to us than ever before, allowing brands to understand consumer preferences at virtually every touchpoint along the consumer journey and gain a more in-depth awareness of what customers are thinking, feeling, doing and purchasing. Marketers are now able to build their marketing strategies around insights beginning with “we know” rather than “we think”.
Yet the key strength of a data-driven approach to marketing is the ability it affords brands to measure and track marketing ROI at a granular level. In today’s volatile business environment, the importance of measuring marketing effectiveness is unparalleled. Marketing budgets are often amongst the first areas businesses turn to in times of cost-saving, so the ability to demonstrate the true value that marketing dollars are contributing to the business is invaluable.
Marketing metrics and data also enable brands to stay on top of real-time consumer behavior. As the COVID-19 pandemic has rapidly changed consumer behavior, the way a brand’s consumers are behaving – how they are shopping, where they are consuming their content and what they are choosing to spend their dollars on – has likely changed compared to how they were behaving weeks or months ago. Brands are now contending with the fact that many of their consumers are likely spending most of their time at home, adding a new layer to how, where and when brands reach their audiences.
“Effective marketing has always involved delivering the right product with the right message at the right place and the right time for the right price – now brands are having to consider the added layer of the right device” – Richard Murray, Business Development Director, Tag
The advantages of a data-driven approach to marketing are clear, but the shift towards this approach must happen at a company level. A 2019 Deloitte study surveying executives in the U.S. found that organizations who were culturally oriented towards a data-driven approach to insights and decision making were twice as likely to have significantly exceeded business goals, compared to those businesses without a strong analytics culture. Yet it seems that this shift has not yet happened on a large scale – the same study indicated that 63% of those surveyed did not believe their companies are analytics-driven.
Here are 3 steps marketers can take today to shift towards a data-driven approach to marketing:
- Determine what data you have available, and what will be most relevant.
With more data available than ever before, brands can be overloaded with information. Consider the key segments of data that will enable your marketing to become more effective and look at campaign performance from a best-practice perspective and use these as your benchmark to build your data-driven marketing strategy.
- Upskill yourself and your teams where necessary – or hire the right people.
A data-driven approach requires an entirely new skill set that many marketers may not yet possess. Consider whether it’s worth investing in upskilling your current teams, or whether you may need to hire new roles to enable this new way of working.
- Get your key stakeholders on board.
It’s difficult for a shift to a data-driven approach to happen in silos. Having the buy-in of key stakeholders throughout the business will ensure a more seamless transition to the new approach. The more data you can aggregate from across the business on who your customer is, the more targeted you can make your campaigns. A holistic joined up data-approach across an organization is a powerful starting point for any marketer.
At Tag, we enable marketers to create compelling campaign assets that target the right people in the right place at the right time. Our global team of marketing experts can help your brand deliver marketing campaigns that are both effective and efficient, allowing your business to produce a strong return on investment. Our teams are well-versed in data and analytics and can facilitate your transition towards a data-driven marketing strategy.
Schedule a call if you would like to discuss your evolving marketing needs.