Data-driven refers to making business decisions using data as the main criterion. It has been adopted in all kinds of situations in
the marketing
field, and the need for it has increased more and more in recent years.
In this article, we will explain the overview of data-driven marketing, the characteristics of data-driven marketing, and why data-driven marketing is necessary. We will also introduce tools to assist you in becoming data-driven, so please refer to them.
What is data-driven?
First, let’s explain the meaning of data-driven.
Data-driven refers to making business decisions using data as the main criterion. Rather than relying on human experience or intuition, decisions are made based on numerical data, making it possible to make objective and calm judgments.
Data-driven marketing is currently being adopted in various fields, and in the marketing field it is being implemented as “data-driven marketing.”
What is data-driven marketing?
One of the things that uses data-driven is “data-driven marketing.” Data-driven marketing refers to marketing activities that are developed based on data. The purpose is to utilize data on customer behavior and preferences to formulate strategies and implement marketing effectively.
Data-driven marketing tends to produce better results than traditional general advertising and
marketing strategies
. In this day and age where
digital marketing
technology is advancing, data-driven marketing is one of the most popular marketing methods.
Why you need to be data-driven
So far, we have provided an overview of data-driven. From here, I will explain why data-driven is necessary.
Let’s look at each in turn.
Consumer purchasing behavior is diversifying
In recent years, consumer purchasing behavior has diversified, and the expectations of products and services vary from consumer to consumer. A data-driven approach allows you to quantify this diversity and then develop appropriate measures. Develop effective marketing strategies that meet the unique and complex
needs
of each consumer.
Digital marketing is developing
With the spread of digital marketing, companies have more opportunities to place listing ads and SNS ads, and user behavior has become easier to quantify and track. In order to make effective use of the accumulated data and develop productive strategies, data-driven considerations are essential.
Need to choose cost-effective marketing
As mentioned above, in recent years many companies have been implementing marketing using digital advertising. It can be said that marketing competition is more intense than ever before.
Because of this situation, companies need to manage their advertising budgets effectively and must choose the most cost-effective option. In order to make objective decisions about which ads to spend and how much to spend based on past placement data, data-driven choices are necessary.
Data-driven benefits
Now let’s take a look at the benefits of being data-driven.
I will explain each in turn.
Can identify bottlenecks
Being data-driven gives you a clearer picture of bottlenecks and challenges in your business and marketing. Identifying the causes of issues that were previously invisible will lead to reductions in human resources and running costs, as well as permanently increasing sales and profits for the company.
You will be able to take highly reproducible measures
Another advantage of being data-driven is the ability to come up with highly reproducible measures. With a data-driven approach, analysis is based on numerical data rather than heuristics or intuition, allowing for grounded and consistent measures to be taken. Because the measures are established based on objective standards, they are highly reproducible and easy to apply and develop.
Enables personalized marketing
Data-driven marketing also enables marketing that is tailored to individual customers, or in other words, personalized marketing. By implementing advertising and
content marketing
based on customer preference and behavior data, you can expect to reach your target targets more easily and significantly increase your contract rate.
How to be data-driven
If you are actually going to be data-driven, it would be a good idea to follow the flow below.
I will explain each in turn.
Collect the data you need
Start by collecting the data you need to become data-driven. For example, we collect various data such as customer purchase history, website traffic data, and customer activity on social media. The more information you can gather at this stage, the higher the probability of data-driven success.
Visualize the collected data
Next, we organize the collected data into an analyzable format and visualize it. Visualizing data, such as
dashboards
and graphs, makes it easier to understand patterns and trends.
Consider an action plan
Next, we will consider a specific action plan based on the information obtained through data analysis. At this stage, consider what kind of marketing strategy you will develop and which segments you will focus on.
For example, we will discuss how to create an action plan that will produce more results, such as changing the marketing that used to be based on advertising to one that uses SNS such as YouTube and Instagram.
Execute the action plan you have considered
Once you have considered your action plan, it’s time to move on to the implementation stage. Specifically, this includes advertising and website optimization, content production, and SNS operation.
It is important to run the PDCA cycle while executing the action plan and consciously repeat the third step (Check) and the fourth step (Action).
The marketing tools you need to be data-driven
Finally, we will introduce some useful data-driven marketing tools.
Let’s look at each in turn.
DMP (Data Management Platform)
DMP is a tool for efficiently collecting, managing, and utilizing data. It integrates customer data, online behavior data, advertising data, and more to become a useful tool for segmentation and personalization. Utilizing DMP makes it possible to centrally manage data, which also reduces the burden on those in charge.
MA (Marketing Automation)
MA
is a tool that allows you to automate your marketing processes. Since you can automate various marketing activities such as SNS posting and website targeting, you will be able to implement marketing strategies that do not rely on human resources.
CRM (Customer Relationship Management)
CRM
is a tool for collecting and managing customer information. By leveraging CRM, you can strengthen relationships with your customers and use data to provide personalized customer interactions.
Web analysis tools
Web analysis tools are tools for collecting and analyzing website traffic data, etc. Track data such as visitor behavior, page views, and conversion rates to help you understand improvements to your website. It can also be linked with advertising, so be sure to implement it when implementing marketing measures based on your website.
SFA (Sales Force Automation)
SFA is a tool to support sales activities and streamline the sales process. Collecting data about customers and tracking customer communications is critical to sales activities. If you can improve your sales process, you can reduce labor costs and increase your closing rate.
summary
In this article, we have explained about data-driven.
Data-driven means making business decisions using data as the main criterion. By taking a data-driven approach, you will be able to implement marketing measures that were previously impossible, and you will be able to run personalized ads.
If you feel that traditional marketing is a challenge, why not consider data-driven measures?