Data – The Future of Marketing
Evolution of Marketing
In the last century, how businesses market their goods and services has changed dramatically. Initially, most businesses mass produced standardised products with the assumption that if goods were produced, customers would buy. This evolved into a more sales based approach, where companies ‘pushed’ customers to buy their products.
Later a more customer-based approach eventuated, with an emphasis on the needs of the customer. This model has recently been complemented with the idea of relationship marketing, in which companies attempt to develop meaningful relationships with their customers. In order to best form relationships with customers, data-driven marketing is becoming increasingly prevalent.
What is Data-Driven Marketing?
Data-driven marketing is a growing trend in the 21st Century. As the name suggests, data-driven marketing uses data to make more informed decisions to target your desired customer base. This data is collected from previous interactions with customers, to determine how customers engage and interact with the business. By gaining meaningful insights from this data, businesses can better understand their customers and ultimately remain competitive.
Why Should Your Business Consider Data-Driven Marketing?
Firstly, data-driven marketing allows for a more customised marketing approach. In a world where customers are continually looking for more personalised products and services, data-driven marketing allows for businesses to most effectively understand their customers and what they are after. By being more aware of their customers, businesses can effectively create and offer products and services that are tailored to their customers needs.
Data-driven marketing makes it easier to segment customers. By using data, businesses can better understand differences within their current customer base. Using this information it is then possible to segment the market and understand the needs specific to different segmentation groups. Drawing on these groups, businesses are then able to create marketing campaigns that best meet the needs of each specific group.
Data-driven marketing also ensures that companies use their time and resources most effectively. By being able to better understand their customers, businesses are able to best understand which marketing strategies to utilise, whether it be through retargeting, display ads, or whatever is most relevant to the target market.
Where Do I Begin?
A staggering amount of data is created every day. According to IBM, 2.5 quintillion bytes of data is created daily with 90% of all data that exists being created in the last two years. As such it can be extremely difficult to know how to gain meaningful insights from such a vast quantity of data. Reach out to us today to ensure that your company is doing the most it can to understand and connect with your customers.