Developing a Data Driven Marketing Strategy
Big Data is a common buzzword in the marketplace these days. You hear it being used for all sorts of things, from policy implementation to gauging voter sentiment in the political spheres. Most notably, it’s being used increasingly in the world of business, especially to build an effective and targeted marketing strategy.
What exactly is big data? The answer is simple. It is the use of modern analytical and statistical methods to understand trends and patterns. These trends and patterns can be seen from data collected from a large number of consumers and respondents. The key element here is the amount of respondents that are sampled, which number in the tens of thousands.
Before big data was a thing, marketing departments often depended on a small number of respondents which were interviewed verbally. Often this number did not go above a few hundred. Nowadays, however, with the advent of social media and other communication technology, marketers can harvest data from hundreds of thousands of respondents. This will give them a much more accurate picture of what consumers and clients want.
Why Big Data?
Any marketer will tell you that big data is revolutionizing the way that companies are selling their products and services. It is always important for any company to gather data in the most ethical way possible. This means no prying into the private data of millions of users.
Instead, ethical bid data gathering practices merely tracks the behavior and preferences of consumers as they shop online. This of course, is just one example of how ethical big data functions. On the whole, here’s how big data can benefit your marketing strategy:
Improving customer experience
Big data has a way of allowing you to know whether your company’s sales and services are up to par. This includes gaining an insight about what customers or clients liked and disliked about shopping with your brand. From their comments and choices you’ll be able to know whether they enjoyed the interaction, or whether it was tedious to shop. Data can also help you to pinpoint the exact experience that made it difficult for them to access or engage.
This means that you can pinpoint exact areas for improvement within your business, whether its your quality of service or processes.
Maximizing Price Points
The big data approach won’t just give you insights into the behavior of customers that buy from you; it will also allow you to understand the performances of your business rivals. From here, you’ll be able to gauge their preferences, especially when it comes to fixing the best prices, and maximizing price points in accordance to quality.
When you create value for money and charge your customers a reasonable price, you’ll be able to get a bigger percentage of the market in the long term. Data can help you achieve this in a much more targeted and informed manner.
Identifying Target Groups
In order to plan and strategy, you’ll have to first know who your customers are. Data analytics is one way to assess the demographics that have the highest possibility of being attracted to your business. You will know what economic background, gender and age they’re from. These factors will help you craft messages that are more specific and targeted. In this way, you’ll be able to reach more of the right people when marketing your brand.
There will also be a deeper understanding of how you can personalize your messages to masses. You’ll be able to choose strategies that resonate with certain groups that are relevant. For example, if your business attracts more youths below 30 than anyone else, you can now focus your marketing efforts on social media.
Improving Processes and Procedures
Data doesn’t just involve feedback from customers. Big data can also show weaknesses in your company operations. These include financial, production and other standard operating procedures. From data analytics, you’ll be able to identify whether there are any bottlenecks in production, or areas of operations which are taking up unnecessary costs.
In general, you’ll also be able to trim excesses in your company. This means getting rid of areas that are under performing or just not beneficial or cost effective. In this way, operational costs can be brought down and profits maximized.
Opening Up New Market Opportunities
Apart from a deeper understanding of how the majority of your customers think, you would also be able to see the behavioral patterns related with groups that don’t usually engage with you. Therefore, you can formulate marketing strategies that target these groups. It would be an eye opener to see which types of media they consume, as well as what promotions they are most attracted to.
The data analytics will then be able to open up new markets for you, in places and with people that your business has never been able to reach before.
Easy Planning for the Future
Mapping out your marketing strategy for the long term will be made much easier with data analytics. For one, you will be able to see sales and income patterns over time, and have a strong idea about what the main factors influencing them are. This also means that future trends can be predicted.
This extrapolation of data allows for future strategies to be put in place, as you no longer have to depend on guesswork to plan for the future.
Setting Up Internal Quality Standards
Previously, businesses would rely on widely used models for internal assessments of performance and achievements. However, with analytics your company can set up a set of performance and quality standards to gauge things like KPI and ROI as well as set up indexes that can help you achieve external standards in the future.
Data analytics is one of the best indicators of how different aspects of your marketing projects and performing, and thereby you will be able to identify markers and signs for all marketing areas to achieve. This will also give your teams clear goals to achieve in the long term and short term.
Building a Loyal Customer Base
Return customers are the core of any business’s survival. However, many businesses just don’t know what makes people come back for more. Therefore, they invest in any and all marketing methods, some of which work and some just don’t.
Data analytics allows you to understand clearly and see the leading reasons why customers become loyal to your brand. It analyzes repeat customers’ feedback on why they’re attracted to your business, so that you can identify one of two clear factors and work on improving them. This way, you’ll be able to keep more customers while still reaching out to new ones.
Big data analytics is a key marketing strategy of the future, and its changing the way companies see themselves and the people they serve. Once you apply analytics to your own business, you’ll be surprised at how many unexpected facts you learn. In the long run, if you invest a little into analytics, you’ll end up with a marketing strategy that is targeted and maximized for performance, as opposed to going of blindly on your own or modeling it after other businesses. What has worked previously for others may not necessarily work for you.