October 31, 2018
Adopting a data-driven marketing automation approach
For marketers around the world, data has been a double-edged sword. Data is readily available but marketers struggle to keep up with the endless possibilities of analysis.
When it comes to consumer analysis, channel optimization and media spend, marketers have more power than ever before. But with great power comes great accountability. Executive staff are increasingly hungry for the demonstrable metrics that data-driven marketing provides — particularly when it comes to return on investment (ROI).
This hunger for data-driven marketing comes as no surprise. Companies who adopt data-driven marketing strategies are 23 times more likely to acquire customers, and six times more likely to be profitable year-over-year.
If that sounds appealing, the good news is that data-driven marketing strategies are within reach. Here's how you can prepare.
1.Have a direction
Before tackling endless swathes of information, successful marketers will define a direction for their data-driven marketing strategy. There's simply too much digital ground to cover without a set of key objectives.
The focus of a data-driven strategy could be (but isn't limited to):
- Nurturing newsletter subscribers to become customers
- Tracking user behavior to prevent churn
- Measuring user engagement across multiple channels
Establishing strategic direction enables marketing teams to make purposeful use of the data they have. Whether it's on a small or large scale, the result is always better data-driven marketing.
2.Refresh your data
When customers experience lifestyle changes like getting married or changing jobs, their details change. These changes affect the overall data accuracy, and research by Neustar shows that 60 percent of customer data degenerates after two years.
It pays to keep data 'fresh' for successful targeting, credible insights and improved decision making. Companies often achieve this by:
- Partnering with third-party data providers;
- Enticing customers to update their information through Headsup messages; and
- Constantly collecting information through platforms like Forms, Typeform or Delighted
3.Use people power
Choosing the right team is essential for data-driven marketing. Of course, companies should be hiring with a focus on data-centric skills. But it doesn't end with computer skills. A successful data-driven marketing strategy needs people who are willing to expand their thinking across departments and disciplines.
Richard Bayston puts it well in his article on Effin Amazing:
"[A cross-departmental and disciplinary team] doesn’t just mean someone from IT gets together with whichever guy from sales that managers think they can spare the best. Instead, it means finding people who are willing to go beyond their areas of knowledge. Data scientists have to be willing to learn about marketing; salespeople have to be willing to learn about IT."
The quote above highlights another issue that's critical to data-driven marketing strategies. Staff must know about each other's disciplines, sure. But they also need to be freely sharing information between teams.
Take marketing and sales — two departments that should always be joined at the hip. When marketing generates leads, sales should follow-up quickly. Sales should know what information marketing wants to capture for future campaigns. Marketing should know what product benefits sales want to highlight. The list goes on.
Get teams working together with Autopilot's Annotate and Collaborate feature. Communicate ideas, plan customer journeys and drive conversions — all on the same page, and in real-time.
Data doesn't just enable companies to identify who their customers are and what they're interested in. It can also provide valuable insight into when customers are receptive to marketing messages.
More than 1,700 senior marketing professionals agree that timing is key. Mastering timing will help seize your audience's attention when their interest is piqued. This template is a simple way to use Autopilot for perfectly-timed marketing.
One of the biggest upsides of a data-driven marketing strategy is accurate performance measurement that communicates results. Ironically enough, 75 percent of marketers from a global marketing survey reported difficulty in calculating ROI from their data-driven marketing efforts.
The survey reveals that marketing teams know that ROI should be measured, but they’re not sure what they should be measuring. A quick way to figure out what needs to be measured is to:
- Decide on the questions that need answering;
- Align the metrics and dataset structure with strategic objectives;
- Calculate a customer's lifetime value (CLV); and
- Focus on a single customer view
The long answer? Learn more about calculating your data-driven marketing ROI.
Data-driven marketing strategies help place more effective messaging in front of customers. With the right direction and organizational setup, companies can take full advantage of customer information and behaviors. In a world of data, preparation and planning go a long way.