If you aren’t using data-driven marketing, you’re missing out big time. When you make use of data-driven marketing, you are taking the time to understand what your customers like, what they dislike, and what they really want to see from you in the future.
But if you are still out of the loop, don’t freak out just yet. We’ll tell you everything we can to help you stay competitive.
What is Data-Driven Marketing?
Simply put, data-driven marketing uses concrete statistics to tell you more about who your customers are and what their consumption habits look like. You might get this information from customer surveys, or you might zero in on a specific variable to determine how it affects your sales.
Today, more and more businesses are turning to outside companies to do the hardest part for them: collect and analyze these priceless data. As long as you can accurately interpret it, any data that can be used to transform your business for the better is great.
While many people with ample retail experience may roll their eyes at the mantra “the customer is always right,” it might have some truth to it when it comes to data-driven marketing. At the very least, what your customers say about your services can say a lot about the present state of your business and what you should do to keep raking in the big bucks (or to improve your sales).
Basically, data-driven marketing discourages you from totally dismantling your marketing efforts and starting from scratch just because. Instead, you make meaningful changes based on the feedback that your customers have explicitly given you—whether through surveys or by speaking with their purchases.
Data-Driven Marketing at Work
Believe it or not, businesses have been tinkering with different data-driven marketing methods for decades. The difference: decades ago, they didn’t have the good ol’ Internet to help them out. Before the World Wide Web came along, companies had to rely on mail and basic advertisements, which we typically do everything we can to ignore today.
Even then, these methods often didn’t boast the best results. As a result, business owners just sort of guessed what their customers wanted. Granted, some good guesses were made, but when they guessed incorrectly, they paid dearly when their customers waltzed over to their competitors to spend their hard-earned money.
As you can imagine, then, none of these old methods can compare to the highly accurate and individualized data that the internet offers — which is why you are a fool if you ignore this handy tool, to put it quite bluntly.
Beyond that, the internet provides data from so many different channels. Think about all the ways you engage with your customers daily, even if you don’t speak with them directly. There’s email, social media, and of course your own website (which is ideally easy to navigate and full of color, fun, and bad but endearing jokes).
Remember, though, that you won’t see results from great data-driven marketing overnight. It’s like anything else worth doing; it is a long-term commitment. You can’t just collect a bunch of useful data once, glance over it briefly, and then call it a day. You should be gathering this information from your customers regularly and comparing present results with those from the past. Take note of trends. Don’t be afraid of “trying to read too deeply into things.” When it comes to the success of your own business, every little detail matters.
If you’re able to stay on top of these trends, you’ll stand out from your competitors that much more.
But remember: data are useless if you’re not going to do anything with them. Why waste your time, and your customers’ time, by creating lengthy surveys and begging everyone who stops in to buy a soda to take these surveys if you’re not going to do anything with the information and feedback you receive?
If you want to see results, you need to take action. The way you respond to these data will vary depending on your business and what the feedback is. It could be as simple as offering certain deals or coupons during times when you know demand will be higher, or as complex as changing a company policy.
Believe us: customers will notice if you never listen to a word they say (or write). On the other hand, if your customers feel that their feedback is valuable, that it can actually change things for the better, they will respect your work that much more, and be much more likely to stay loyal to you.
These customers will want to keep giving you feedback, creating a positive loop. When you make use of data-driven marketing, your customers’ loyalty is basically in your hands. So seize it, embrace it, and don’t forget about it.
Take Action Today!
Say, for example, that you own a frozen yogurt shop. It might be enlightening to know that most of your customers prefers decadent flavors like red velvet and salted caramel brownie over more nostalgic ones like cotton candy and bubblegum. But knowing is only part of it. What are you going to do with that information? Are you going to keep cranking out overly sweet flavors and market your establishment as a candy-coated midway extravaganza? Probably not.
Remember: you can use customer data to shape your ad campaigns, your sales, and your strategies. You’ll not only improve your company, but you’ll see an increase in customer happiness and loyalty as a result. So listen to your customers. Understand them, know them, and they will respond favorably!