Whenever you come up with a marketing strategy, the desire is that it will work. Before you even come up with the strategy, you need to have a goal in mind. That way, you can focus your effort to this specific goal. The only way you will know whether or not your target is being met is by periodically checking the progress. This requires data. Information on your inventory, money used for each channel or campaign, lead generation and conversion rates will help you with these periodic checks. This internal data plays a big role even before you start considering external data from your competitors. You can then confidently assess the effectiveness of your marketing strategy and make the necessary adjustments.
There are different types of business data you need to consider. Each contributes to the effectiveness of your marketing strategy. They are:
Financial Status and Strategy Feasibility
How much money does the business have? If you have a lot to use on marketing, then you can employ different marketing channels and campaigns. However, you would be restricted to only a few of these if you do not have the financial muscle. As you determine how much you have, you also need to think about how to effectively distribute the finances across your channels and campaigns. In general, your finances dictate which of your marketing strategies is feasible given the resource constraint.
Customer Engagement, Scheduling and Market Segmentation
How responsive are customers to your marketing channels and campaigns? What day of the week or time of the day has the highest customer activity? All this information is beneficial. It allows you to concentrate on the channels, campaigns, days and time of the day when customer engagement is highest. For example, you can schedule your email campaign for Thursday at 3 p.m. if that is the peak day and time for the campaign. This is one way to optimize your email campaign strategy.
Additionally, you need to consider that not all of your customers are the same. Due to this heterogeneity, you should identify the different types of customers through internal data on customer engagement. With this, you can comfortably embark on customer segmentation. It allows you to use different marketing strategies for the different customers. This ultimately allows you to maximize on your returns. Also, you get to reduce your cost per click once you identify your target demographic since you no longer have to cast a wide net.
Trends, Strategy Adjustment and Optimization
Data is collected over different periods. This means that there is a lot of data at any one point in time. This allows you to search for and identify trends in the data. For example, does the email campaign yield more responses and queries from customers than advertisements? Does the pay per click campaign do best in a certain geographical location? You can identify all this from the data you collect over time.
A great source of data trends that’s crucial in marketing strategies is the attribution model. It assigns credit to various touch-points, that is, campaigns and channels over a period of time. The results on customer engagement, lead generation and conversions for each touch-point inform budgetary allocation and reallocation. It also helps to adjust market strategies accordingly to reduce cost, improve efficiency and therefore maximize on ROI.
Data driven marketing can be effective and strategic if you have the right type of data for your analysis. The underlying goal of every marketing strategy is to improve ROI. You will only be able to do this if you pay attention to the internal data as it informs your decisions to adjust or readjust your marketing strategy in order to improve on its effectiveness.
P.s: Image source: https://www.ngdata.com/what-is-data-driven-marketing/