Data-driven strategies enable marketers to gauge user’s online behavior. This analysis is then used to create personalized campaigns to reach consumers that “show” an inclination towards their business.
Data analysis is a fairly new concept which has wide reaching implications. It has been increasingly employed in targeting audience to achieve better results.
Mitt Romney was a 2012 republican presidential nominee who hired Zac Moffatt to discover and convert new voters. At that time data science was in nascent stages and was strictly used for businesses. Mofatt’s job was to make big data usable for campaign staffers. Though Romney lost the election, but the analytics and data team’s pioneered techniques are widely used today to drive election campaigns.
Applications of Data driven Marketing
According to a VoC research by ERDM, which incorporated more than 15,000 hours of in-depth interviews with individual customers and clients, 8 critical points were identified where customers asked for explicit data-driven personalized engagement:
- Anticipatory responses to decreasing engagement (visits, responses, purchases)
- Immediate responses to negative experiences
- Surprise-and-delight thank-yous
- Value-added cross-selling and upselling
- Repeat sales
Crossix solutions recently worked with top 10 pharmaceutical clients to analyse their ROI in DTC marketing for a launch in highly competitive category. They analyzed the conversion impact of a multichannel campaign (TV, Print and point-of-care efforts) by measuring exposed audience’s response for each channel combination against matched control groups. Some insights of the study:
- Exposure to TV alone failed to generate a break-even ROI
- Group exposed to TV and digital media yielded a substantially positive ROI, 7 times more than that observed for TV alone.
- By doubling the digital budget and reducing their TV budget accordingly, clients observed an overall DTC ROI increase of more than 25%.
- Additional personalization within each channel increased the ROI even further.
How to leverage full Value of Data Driven Marketing
Data driven marketing has transformed the landscape of marketing. Instead of creating a specific campaign businesses are making campaigns that are audience specific. Use the following tips to make data usable for your marketing campaign:
- Use big data of user behavior based on gender, location, age, interests etc. Create an exhaustive list of such factors.
- Build discreet profiles for different set of consumers. Each profile must have a common property. DO NOT make redundant profiles or add the same user in more than one profile.
- More the number and smaller the profiles better is the data driven personalization.
- Build your web content according to the distinct profile. Make sure to keep the subject matter user-specific.
- Test to determine the right balance between implicit and explicit data. Implicit data is not distinctly gathered, on the other hand explicit data is more specific. Using only one kind of data can divert the campaign to a no man’s land.
- Use data science to decide the best time for blasting the marketing campaign. Review and analyze the results to modify your strategy for favorable outcomes.
Debate of ethics and privacy
But the possibilities do not come without a rebuttal. Two biggest objections to data driven marketing are:
Ethics: Virtual reality is able to capture emotional patterns of consumers, which when combined with other preferences can manipulate purchase decisions, which many argue is unethical. It can affect people’s viewpoint more than any other factor (actual quality and performance of product)
Privacy: Terabytes of data is being collected on a continuous basis about users. All this information is connected with a dedicated user account. This information can be used in ways that can impact privacy and with a growing number of identity theft cases safety of these big chunks of user data is very critical.
But the users understand personalization. They want products and services that resonate with them and with the tide of time, data-driven marketing is creating a benchmark in online marketing