Why Data-driven Marketing is Important to a Business

There has been an upsurge in the way information is produced and processed. For a business that deals directly with consumers, you’ll want to know everything there is to know for your marketing endeavors. The modern marketer is expected to be driven by data if you’re to target the potential audience. Data can help in monitoring customer engagement which will ultimately prove to be useful when you’re trying to sell. You’re probably why data-driven marketing is important to your business. Before we can answer these questions, there are some important points that will need to be addressed.

What Marketing Data is Possible to Collect?

We live in an era where consumers spend a lot of time online. The data that is available for collection will mainly depend on the nature of your business. If you’re a startup, you might not have enough data to start optimizing campaigns. That means you will have to look for data from different sources. Other than the people visiting your website, you’ll want to examine external sources. You can use providers like Zenserp for web scraping. Web scraping, if done right can be a good source of data.

For a company with existing customers, you might already have data to work with provided there is an efficient system for collection. You could be having an idea of where the majority of the customers are based, the age group, and gender. Having such data helps in optimizing marketing campaigns. Having data will help in building a rounded picture of your potential customer.

Using the Data to Grow Your Business

The purpose of having marketing data is so that you can understand your customers better. In order to provide the best product or service, you will need to have extensive knowledge of your customers. A good example is when you’re a restaurant owner. Having knowledge if the customers prefer organic dishes will help you know where to concentrate your efforts. Making such a decision wouldn’t be possible without the right marketing data. It will not only help you develop a product or a service but will also help with the selling.

With such data, you’re able to know the social platform your potential customer frequents. Instead of trying every other social media site out there, you’re able to concentrate on just one where there is potential for returns.

Personalization has a big influence on marketing, especially in this era where consumers want to feel special when interacting with brands and companies. Personalization is only possible when you have enough data about the customer. The more the data, the better it is to come up with something special and individualized.

Collecting Marketing Data

This is one of the biggest challenges that a lot of businesses face. There are both moral and ethical considerations to have in mind when collecting sensitive data about your customers. There are two main kinds of data: primary data and secondary data. Primary data is fresh information that will be collected for the first time. Secondary data is information that is already in existence which you either license or buy. There are different ways that primary data can be collected. For a brick and mortar business, you can use interviews and questionnaires to have an idea of what the customer thinks about your product or service. Collecting data online is a different ball game altogether. Most marketers will use email capture as the lead magnet for collecting data. It is easy to reach out to the customer when you have their email or phone number.

When gathering data, you will need to focus on a specific piece of information. This is because customers might not have the time or patience to go through different data elements.

There are firms that offer access to secondary data but you will have to pay for the services. This is the easiest way of knowing what you need about your target market. You will be required to have a database when collecting marketing data. Such a task can be resource-intensive and that is why planning is necessary if you’re to be successful.

Data Protection

You’re required to comply with the laws if you’re storing data about your customers. It is not permitted to sell the data to third parties. You’re supposed to process the data lawfully and fairly to not run into trouble with the law. As a business, it is crucial to have the marketing data so that you can develop products and services that the customer wants.

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