With people rapidly connecting to the digital world across the globe, marketing is undergoing a drastic change. Companies are eager to gather as much customer data as possible as it allows them to brainstorm future strategies. The credit card transaction you make, the things you search online, the people you talk to, and GPS powered vehicle tracking systems that help you move through uncharted territories enable companies to keep a tab on your activities. The pandemic has also brought a massive transformation in the way we consume content. Reports suggest that consumers are spending more time online and watching TV, and are meeting occasionally in-person.
This article sheds light on why data plays a crucial role in creating the right marketing strategy.
1. Sharing personalized content
Today, companies have access to tons of customer data points. The following list depicts a few of them:
a. Geographic details
b. Demographic details
c. Behavioral details
d. Religious/cultural/ethnic identity
h. Psychographic details
Data helps companies to target customers and send pin-point communication to them. For example, Amazon Prime sends distinct movie recommendations to different people based on their preferences. If you like watching superhero movies, it will recommend you “Spiderman”. But if you enjoy romantic movies, it will suggest you “She’s out of my League”. Data analytics also enables companies to measure return on investment (ROI).
2. To find out which channels are working and which aren’t
With the power of data in their hands, marketing managers can easily figure out which media channels are bringing customers. They can track the customer from the interest stage to the purchase stage by analyzing click-through-rate (CTR), website cookies, etc.
Gone are the days of traditional channels when marketers didn’t have enough data to measure the effectiveness of their programs. The majority of times it was unclear whether the promotional campaign drove sales or it was a mere coincidence.
Data analytics enables marketers to choose the right channel for various kinds of promotional activities.
3. Data allows marketers to devise a unique customer profile
4. Data enables marketers to execute a full-funnel marketing strategy
In the digital age, customers no longer follow the linear buying stages from gaining information about your products to purchasing them. With the proliferation of digital tools and penetration of social media increasing, consumer awareness is reaching its peak. Hence, the full-funnel marketing strategy needs tweaking. Surveys reveal that about 43% of people aged between 16 and 24 use social media to gain product information. Data analytics tools help marketers to target and nurture their prospective customers and push them forward through the new digital purchase funnel.
Nishant likes to read and write on technologies that form the bedrock of modern-day and age like Web Apps, machine learning, data science, AI, and robotics. His expertise in content marketing has helped grow countless business opportunities. Nishant works for Sage Software Solutions Pvt. Ltd., a leading provider of CRM and ERP solutions to small and mid-sized businesses in India.