Marketing strategy

The importance of data in marketing strategy

A few years ago I came across an article written by Greg Asman titled “Data is a fuel, not a strategy”.

In the article, Asman compared Big Data to Big Oil and claimed that what the two industries have in common is that they are all about producing fuel that enables the production of an end product or the formulation of a strategy. With the proliferation of data sources, this is more true today than ever. However, that doesn’t mean we should all rush out and hire a group of “big data experts”. As Asman points out, what you really need are “data strategist experts”, people who know how to “effectively fan the flames that drive the business forward and not alchemists who store data like a drag.” powder in barrels in the basement”.

Business leaders who have invested more in understanding their customers, gleaning insights from customer data, formulating more targeted marketing strategies and embracing strategic analytics, are exploiting more opportunities to sell and earn on the markets in which they compete. Any business that doesn’t use data in its marketing operations is missing out on countless opportunities to achieve exponential growth and greater impact with its marketing communications.

You need data strategists who know how to effectively fan the flames that drive the business forward, not alchemists who store data like wildfire in barrels in the basement-Greg Asman

When your marketing department sets out to launch a new product, it needs to understand several things. The only way for them to effectively present the selling points of products or services and make real connections with their target audience is through a series of in-depth data collection and analysis. If you want to learn more about this topic, check out this guide to structuring your data to measure your marketing activities and produce actionable insights.

So how exactly does customer data make a difference to your business? Here are some examples of how data can be used to improve customer experience, increase marketing campaign conversion, and transform your relationship with your customers:

Personalize your campaigns – One of the best marketing strategies is to personalize your marketing messages to attract individual customers. Customers will appreciate messages that touch them on a personal level. This way they are motivated to believe that the products are created to solve their problems and pain points. An effective way to personalize your marketing campaigns is to collect customer data. The data will help you understand the different needs of your target customers. When your team sends marketing messages to prospects, they can then use the information they’ve collected and tell potential customers how your product will solve their problems. This encourages productive and profitable brand-customer relationships.

Direct more attention to loyal customers – Even if a business wants to explore new markets and grow its customer base, it should also focus on retaining its customers. After all, it’s more profitable to retain customers who are already loyal to your brand than to seek out new customers to convert. Fortunately, customer data will help you identify customers who have been with your business for a long time.

Using this data, you can then focus more on those loyal customers, as they are very likely to continue buying your products and patronizing your brand. They can be a good testing ground for your marketing strategies as they better understand your corporate culture. You can then apply what you’ve learned from engaging with your existing customer base when trying new approaches with your prospects. Always remember that when you focus too much on generating new leads and neglect your loyal customers, you risk losing them both. Let customer data help you identify your brand advocates and build your marketing strategy around them.

Improve the customer experience – When launching products in the market, you need to give your customers a better experience than they had before with other products in the category. However, you can’t know how to improve their experience if you don’t have a benchmark to measure it against. A company that collects data through surveys can identify areas that need improvement. The marketing team can then focus on those customer experience opportunities when reaching out to customers, presenting them with a better experience with the products you offer. Anticipating, not just reacting to the needs of target customers, will help your business sell more stuff, more often for more money. Moreover, creating a great user experience helps you retain your customers.

Better customer segmentation – Customer segmentation is key to making communication more targeted to prospects and customers. You can divide your customers based on demographics such as age and gender or through behavioral analysis performed during your online interactions with them. You can also segment your customers based on how often they purchase from your business. When you segment customers, it becomes easier for you to group your marketing team together so that each group can focus on a particular segment. They can then better craft messages and use channels that target that specific segment. This will yield better results than managing all of your customers as one large group.

Develop customer-centric products – One way to make sure you have a chance of achieving your goal of implementing a successful marketing campaign is to ask customers what they want. Through surveys, you can identify gaps in the market that customers would like to fill. So instead of blindly trying different possibilities, you create exactly the products the customer needs and fill in the “white space”. Paraphrasing the great Peter Drucker, the goal of marketing is to use data to understand the customer so that the product sells itself. By creating customer-centric products, companies won’t have to struggle with marketing and convincing people that it’s the right product for their needs. People will easily accept your products because that’s what they wanted in the first place. Also, when they publicize the quality of your product, more people will buy it.

The goal of marketing is to know and understand the customer so that the product or service suits them and sells..” -Peter Drucker

Conclusion

As Greg Asman suggested in his post, we all need to be “smarter about how to burn the data we have more efficiently and when it’s worth collecting more of it.” As a marketer, you need to start with your market goals and align the data to them instead of trying to create a brand story to support the goals with all the data we have. Like fuel, data can burn hot and guide your brand story with pure truth, or it can burn cold and dance like campfires where fictional stories are told. Used effectively, customer data will help you know what to do and when to do it. It helps eliminate the uncertainties you face and allows you to analyze trends and make informed decisions on how to give your customers a reason to care, a reason to listen, a reason to engage. , a reason to buy and, above all, a reason to stay.