The evolution of big data and advanced automation technologies is allowing marketers to create more personalized content, campaigns, and experiences for their customers.
It is important to note, however, that data by itself is not a tangible resource. Data can only be used effectively if you set realistic, measurable objectives and see how your data stacks up against them.
So, what exactly is data-driven marketing automation?
Why is it necessary, and how can you create a data-driven marketing automation strategy for your business?
Let's take a closer look!
What Is a Data-Driven Marketing Automation Strategy?
Data-driven marketing is extracting actionable information from extensive collections of customer data to aid in developing new products, positioning existing products, creating targeted marketing campaigns, and creating highly personalized customer experiences.
Marketing automation strategies based on data help companies predict customer behavior and better understand their customers.
For instance, based on typical consumer behavior, you can use a data-driven marketing automation strategy to enhance your products and design better user experiences.
Mass personalization is possible once you have access to enough data. Personalized responses can be sent to customers who exhibit specific characteristics or behaviors instead of reaching out to all customers with the same approach.
By modifying these messages for each group, you can establish a stronger connection with your intended audience.
Still not convinced? Okay. Let's talk about the critical benefits of data-driven marketing automation.
Critical Benefits of Data-Driven Marketing Automation
Since you now understand how a data-driven marketing automation strategy works, let's go over some of its key benefits.
It enables tailored ads and content:
With data-driven marketing, data is collected and analyzed automatically, providing insights into customer demographics, needs, behaviors, and purchasing patterns, allowing for highly customized products, campaigns, and content.
With the correct data, you can deliver the most relevant message at the right time to the right customer.
For example, let's say you run a cosmetics ecommerce site, and a specific group of customers only purchase men's cologne.
Personalized offers can be sent to these users based on their past purchases (and other purchase patterns). There's no point in sending these group makeup discounts, for example.
It improves the ability to make strategic decisions:
You can improve your strategic decisions regarding your marketing, your products, and your entire business by utilizing the detailed insights made possible by data-driven marketing and marketing analytics tools.
Utilizing marketing data allows you to understand your customers individually and make more informed decisions truly.
As a result, you will be more confident in your ability to predict customer behavior and the success of your product and marketing initiatives.
It provides you with a competitive advantage:
Consumer data specificity may also give you a competitive edge over rival businesses. It follows that the more specific your customer data is, the simpler it will be to base your marketing automation strategy on it.
Data-driven decisions and strategies put you ahead of the pack because you can identify trends and behaviors that will guide your decisions and improve your customer experience.
Improves your ROI:
Naturally, your sales and ROI will increase when you speak your customers' language and tailor your products and services to them.
It has been shown that businesses that utilize data-driven marketing see a return on investment of 5 to 8 times greater than those who do not.
You can boost sales and ROI by better understanding customer personas and acting accordingly. It's very straightforward. Data should serve as the basis for all of your marketing initiatives.
Now that we've established how a data-driven marketing automation strategy can benefit your company, the next question is: how do you create your data-driven strategy?
We’ll take a closer look in the next chapter.