{"id":7907,"date":"2022-01-05T07:16:00","date_gmt":"2023-06-06T07:16:08","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=7907"},"modified":"2023-07-05T09:59:55","modified_gmt":"2023-07-05T09:59:55","slug":"data-driven-marketing","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/in\/blog\/data-driven-marketing\/","title":{"rendered":"How To Do Personalisation and Automation at Scale With Data-Driven Marketing"},"content":{"rendered":"\n

Introduction <\/span> <\/h2>\n\n\n\n

Data’s role in “mass marketing” was limited; at best, companies referred to data on viewership or circulation of a channel or a newspaper respectively to measure its impact. Cut to the present, or even a decade ago – the Internet trumped all other mediums to become the go-to platform for marketing. Suddenly, words like “measurable” and “ROI” became widely used. Data flooded in from every channel \u2013 websites, display ads, search results, social media posts, and so on. From this abundance of data was born a new marketing philosophy \u2013 data driven marketing. <\/p>\n\n\n\n

What is data driven marketing? <\/span> <\/h2>\n\n\n\n

Data driven marketing uses customer data and supporting information collected from multiple sources to optimise marketing communications. Data driven marketers help foster meaningful customer engagement by providing personalised insights into customer needs, preferences and future behaviour and thus help push return on investment (ROI) on marketing efforts. <\/p>\n\n\n\n

How data driven marketing is better than traditional marketing <\/span> <\/h2>\n\n\n\n

Traditional marketing has three fundamental challenges:<\/p>\n\n\n\n

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  1. You have very limited information about your audiences, which means you base your decisions on assumptions and gut feeling <\/li>\n\n\n\n
  2. You resort to trial and error with broad marketing campaigns in the hope of getting more people\u2019s attention <\/li>\n\n\n\n
  3. Sales is the only parameter of your campaigns\u2019 success and does not account for important factors that impact it <\/li>\n<\/ol>\n\n\n\n

    Nobody can say with conviction if a marketing or ad campaign is going to be or was successful. Even the sources of data \u2013 mostly dated market studies \u2013 are unreliable. And with limited measurement of their effectiveness, traditional campaigns produce no new insights about the target markets and audiences, which companies can use to strategise better.<\/p>\n\n\n\n

    An art supply company that sells products of different grades cannot have a ‘one size fits all’ marketing strategy when it targets professional painters, art college students, or schools. If it does, the company may end up investing in expensive ad spaces, generic marketing campaigns, etc., with no clear idea of how these will contribute to sales. And this is the downside to traditional marketing – the inability to target people 1:1.<\/p>\n\n\n\n

    Data driven marketing replaces guesswork with hard-hitting evidence. Marketers can drill down to audiences\u2019 specific needs and preferences using data like demographics, digital behaviour, buying patterns, interests, etc. Every new campaign engaged with can yield finer customer data that can help refine future campaigns.<\/p>\n\n\n\n

    This way, marketers can reach their audiences at the right time and place with the most personalised messages and offers to increase conversion.<\/p>\n\n\n\n

    Does data driven marketing spell doom for traditional marketing? <\/span> <\/h2>\n\n\n\n

    Not at all. While data driven marketing is ideal for middle-of-funnel and bottom-of-the-funnel campaigns, traditional marketing works like a charm for creating awareness and branding. When entering new markets and audience segments, companies need to maximise their reach. Traditional marketing can help spread awareness and build brand recognition to attract new customers at scale. However, companies need a data driven marketing strategy in place to nurture their target audiences up the marketing funnel and ensure they stick around for the long haul. <\/p>\n\n\n\n

    Benefits of data driven marketing <\/span> <\/h2>\n\n\n\n

    Data driven marketing has numerous benefits. Here are the most significant ones: \"Benefits <\/p>\n\n\n\n

    1. Understanding your target audiences deeply <\/span> <\/h3>\n\n\n\n

    Marketers can gain insights into where their audience’s interests lie by looking into indicators like page or blog visits, ad clicks, video views, products added to cart, etc. Then, engage them in the right channels with the right conversations. <\/p>\n\n\n\n

    2. Segmenting your audiences finely <\/span> <\/h3>\n\n\n\n

    Data helps marketers create audience segments based on interests, demography, geography, purchase history, etc. They can then run campaigns specific to each segment to boost conversion. <\/p>\n\n\n\n

    3. Delivering personalised messaging <\/span> <\/h3>\n\n\n\n

    Marketers can use data to personalise their messaging and offer relevant product, content, and next best action recommendations to aid customers\u2019 decision making. For example, suppose a visitor on your eCommerce site views a particular product multiple times. You can use this data to gauge a possible intent to buy and email them a personalised offer. Increased personalisation improves sales conversion rates by 10-15%.<\/a> <\/p>\n\n\n\n

    4. Creating a seamless omnichannel experience <\/span> <\/h3>\n\n\n\n

    By tracking cross-channel data, marketers can trace the customer journey and provide an omnichannel experience that seamlessly transitions from digital to physical and vice versa. Companies that personalise their customer experience across all channels can see a five to 15% revenue increase.<\/a> <\/p>\n\n\n\n

    5. Targeted ad buying <\/span> <\/h3>\n\n\n\n

    Combine customer data with Machine Learning (ML) algorithms to identify the most suitable places to display your digital ads. <\/p>\n\n\n\n

    6. Improve marketing ROI <\/span> <\/h3>\n\n\n\n

    Using customer data to drive marketing campaigns helps marketers optimise their performance on different channels and improves attribution accuracy. Marketers can determine which channels return the most revenue at low expenditure, and invest in them to reduce costs. It also helps them make better predictions and plan the budget and resources more optimally. <\/p>\n\n\n\n

    Challenges in data driven marketing <\/span> <\/h2>\n\n\n\n
    \"Challenges\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n

    Some of the most common challenges in data driven marketing are:<\/p>\n\n\n\n