For a long time now, marketers have been using data and trends to inform their creative decision making; from the best time of day to send an email, the colours and language that are most likely to deliver the desired outcome, to the customer journey that has the highest chance of conversion.
In fact, according to a Forbes survey, 88% of marketers use data obtained by third parties to enhance their understanding of their customers – painting a more detailed picture of their behaviour and preferences. Research also suggests that those who are using data to inform their approach saw an 8% increase in profit and a 10% decrease in cost.
Despite this rising interest in data-led approaches to marketing, and the proven opportunity that data offers to increase conversion and profits, 87% of marketers say that data is their company’s most under-utilised asset.
Chris Skinner, Co-founder and Director of Acquirz, a leading B2B data and email marketing solutions provider, explains why this reluctance to invest may exist, and how joining the data revolution can propel your creative marketing strategy to new heights, and help convert more customers.
The proof is in the pudding
Why are individuals hesitant to invest in data for marketing and creative strategies? One major obstacle is the challenge to prove its impact; of those who have invested in and implemented data-driven marketing, 26% find it hard to demonstrate ROI, while 12% haven’t succeeded in their testing efforts.
What’s more, marketers are finding budgets now tighter than ever, with 60% saying their budget spending is being scrutinised more than it was in the past. With all eyes watching carefully and a difficulty proving that a strategy is delivering what it should, it is no wonder that many are reluctant to dedicate an already limited allowance to something they don’t understand fully and can’t effectively implement.
A key challenge for many also lies in the quality of data they have access to – a crucial step in any successful data-driven campaign. Over half (54%) of companies who have tried to implement data-driven tactics cite a lack of data quality and completeness as the biggest obstacle to success. High quality data really is key to getting the results you’re looking for; if your data is telling you that your audience are most engaged by little text and lots of imagery, that is naturally the strategy you’ll go for. But if that data is incorrect, you might be looking at skewed results that counter your initial hypothesis, leading to disappointing results and a slashed budget. Not ideal.
Why join the data revolution?
Using data for any strategy has its pros and cons, but when used well it can be the difference between a good result and a great one.
- Personalisation – Data has the ability to reveal what a target audience – and even segmented groups within that target audience – want and need, what is going to engage them the most and convert them into an invested customer. By using data to inform your creative marketing strategy, you can expertly personalise content based on data insights to give yourself the best chance of success from the start.
- Optimising spend – With budgets tight and often marketing one of the first to be cut, marketers are regularly looking for innovative ways to optimise the budget they have with the assurance that the ROI will justify their strategy. Data analysis is a great way to inform decision-making and therefore reduce wasted time and money on uninformed testing, whilst increasing profit and success.
- Leveraging testing – Testing is crucial when it comes to implementing any strategy, but it is especially key to inform and evolve the content and creative that performs the best for your desired outcome. By using data to inform your approach in the first place then analysing performance data, you set a cycle of refined content and constant adaptability in motion, improving both your output and results.
- Predict and be proactive – Data is a great tool to analyse how past output and decisions performed, but it can also help you predict trends before they happen, meaning you can adapt your strategy accordingly. In doing so, you’re able to keep your audience engaged with fresh content and can even be part of the trend (an even bigger result if that trend goes viral).
- Understanding the customer journey – Using data to identify and analyse your customer journey can help reveal insights into the performance of your marketing content, such as the language that does and doesn’t work, when customer engagement drops, and the approach that results in the most conversions, etc. With that information, you can fill in the gaps and ensure your customers are as engaged as can be at any given time.
But how do you go about it?
Securing additional budget or investment for a data-driven campaign or strategy is one thing, but proving your hypothesis was right and worth the additional spend is another and can very quickly go wrong if that strategy isn’t planned properly from the offset:
- Gather and Analyse Data – The foundation of any data-driven strategy is accurate, clean data. Tools like CRM systems, social media analytics, and website tracking are a great way to compile data on your target audience to effectively inform content and creative. Once collected, data-analysis will help to identify key insights about your audience, such as their interests, needs, engagement and purchasing behaviours.
- Segment Your Audience – Once you have gathered your data, segmenting your audience into distinct groups based on shared characteristics or behaviours allows you to tailor your marketing efforts directly. For instance, one group might respond better to visual content, while another might prefer in-depth articles. By understanding these nuances, you can personalise your messaging and creative assets for each group, increasing the relevance and effectiveness of your campaigns.
- Develop and Test – Now you have an idea of what will work best for each group of your target audience, you can effectively use the data to develop an informed strategy, but you don’t want to jump straight into a full-scale campaign. Use your segmented audience to test different versions of your strategy and gather and analyse further data on performance (A/B testing). In doing so, you’re able to paint a clear picture of what variation of your approach achieves the desired outcome and can adapt the rest accordingly.
Once you’ve completed these steps, all you need to do is rinse and repeat. What works one month might not achieve the same results another, so it is important to keep gathering data, and testing your theories to ensure you can adapt and evolve your content and strategy as needed. This could involve tweaking your messaging, exploring new channels, or introducing innovative content formats. By staying flexible and responsive to data insights, you ensure that your content keeps your audience engaged and that your marketing efforts remain effective, relevant, and aligned with your business goals.