Harnessing Data-Driven Marketing

Antony Smith
8 months ago
Data scrolling down the screen

Harnessing Data-Driven Marketing

In the ever-changing landscape of modern agribusiness, where digital interactions are becoming the norm and consumer preferences are in constant flux, the role of data-driven marketing has emerged as a game-changer. No longer can you rely solely on instinct and intuition to make strategic decisions. Instead, you must harness the power of data to inform, refine, and optimise your campaigns. In this blog, we will delve into the world of data-driven marketing, exploring what it is, why it matters, and how to leverage its potential for success.

 

Understanding The Data

Data has become an integral part of the increasingly digital world we live in. Everything action we take, every purchase we make and when we make it is vital information for the brands we interact with, and for those in the know, it can be a cheat sheet on how to keep us coming back for more.

To be successful as a marketing professional in the modern world you need to be able to understand how to identify key trends and patterns in your data to know what your next move needs to be. This data can encompass a wide array of information, including customer demographics, purchase behaviour, social media interactions, website traffic, and more. Instead of basing decisions on gut feelings and bright ideas, data is a quantifiable tool which allows you to make smart decisions when building your marketing strategy.

As an example, if you were creating a marketing strategy for a travel agency, you would want to know the best times of year to be promoting your holidays. Looking at the below snapshot from Google Trends showing the search volumes for “Holiday Deals” in 2017 and 2018, despite there being differences in the exact number of searches made, you can clearly see a pattern of when searches tend to increase and drop off. By using this data, you can determine when consumers are more likely to be searching for holiday deals and plan your advertising accordingly.

Google search comparison for holiday deals in 2017 and 2018

The Power of Data-Driven Marketing

There are other advantages to using data aside from identifying general market trends. Using data to learn more about the way your customers interact with your brand can allow you to create a more bespoke journey based on their preferences. Segmenting your audience into distinct groups based on characteristics and behaviours, allows you to create highly targeted and personalised campaigns that resonate with specific customer groups. By tailoring messages to individual preferences, you create a more positive customer journey which will help to increase engagement and conversion rates.

Below you can see an example of an email sent by Groupon to its newsletter subscribers. You can see that the email contains an offer for discount tickets to Legoland in California. This offer will not get sent to every subscriber on their list. Instead, Groupon will segment their subscriber list based on previous purchases and demographics. This means that the discount will only be sent to subscribers who have children as they have a higher probability of purchasing compared to couples who are more likely to receive restaurant or romantic break offers.

Example email offer from Groupon showing discounted tickets to Legoland

To create the right segment for the offer, Groupon will have reviewed the characteristics and demographics of the 350 people who have already bought to determine which subscribers were most likely to convert.

 

How To Harness Data-Driven Marketing

There are a number of important steps to consider when attempting to harness data as part of your marketing strategy.

  1. Define Clear Objectives: Start by setting clear marketing objectives. Determine what you want to achieve, whether it’s increased brand awareness, lead generation, or sales growth. It can be incredibly difficult to find trends in data when you don’t know what you want to achieve.
  2. Create a Robust CRM System: A sophisticated CRM (Customer Relationship Management) system can be the most powerful tool at your disposal when it comes to data-driven marketing. A CRM system can collect data about your contacts through online forms, website and email interactions, or manual input from sales conversions and store it for use in future marketing activity.
  3. Define Customer Segments: Once you have collected the data on your contacts you can then use the CRM system to create different customer segments based on similar characteristics that could impact their buying behaviour. Use these segments to create targeted email campaigns which address the specific pain points of that segment to help increase engagement.
  4. Implement Marketing Automation: As I am sure you have heard many times before; a key part of marketing is getting the right message in front of the right person at the right time. Create automation flows within your CRM system to distribute timely messaging to a contact after they perform a certain trigger. This could be viewing a particular product page twice within the same week. By using the contacts website browsing data you can deliver messaging on that product whilst their intent is still high.
  5. Test, Test and Test Again: Even using data to drive your marketing is not an exact science. You can use it to define probable outcomes, but you will need to continue to test different elements of your campaigns using A/B testing. Experiment with various headlines, visuals, calls-to-action, and email subject lines to identify which combinations yield the best results. Regularly analyse your results and adjust your strategies accordingly. Monitor key performance indicators (KPIs) and refine your campaigns to maximise your ROI.

 

In Conclusion

Data-driven marketing has transformed the way you and your agribusinesses can approach your marketing efforts. By leveraging the power of data, you can make more informed decisions, create personalised experiences, and optimise your campaigns for better results. However, it’s essential to strike a balance between data-driven insights and ethical considerations to build trust with consumers. As technology continues to evolve, data-driven marketing will remain a cornerstone of modern marketing strategies, enabling you to connect with your audience on a deeper level and achieve remarkable success.

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