These days there are many ways for a business to reach a potential or existing customer in comparison to the traditional ways. Technology has completely changed the way people interact with businesses. This change in the way people interact with businesses has been one of the biggest changes in marketing.
With the increase in the use ofdigital marketing, businesses are turning to data analytics to help them with more powerful and personalized marketing strategies. Today, marketers are leveraging data science to optimize customer experiences across their entire customer journey. But there are still A LOT of misconceptions about data science and what it can do for marketing and customer experience.
Data is an important part of helping you make better decisions with your customers. But how do marketers use data analytics to reach new and existing customers? Read on to find out!
What Is Data Analytics?
Data analytics is a catch-all term. It refers to many different ways that businesses and organizations collect, view, share and utilize data. Data analytics can include anything from a quick glance at sales numbers to creating predictive models based on historical data.
Data analytics helps businesses make sense of their data and use it to their advantage, whether it’s identifying trends, building a predictive model or developing a better understanding of customers.
Data analytics is the process of transforming raw data into digestible information or in the form of charts or graphs (line chart, bar chart,pareto chart, slope chart etc.) that can be used to inform business decisions. Data analytics helps businesses make sense of their data and use it to their advantage, whether it’s identifying trends, building a predictive model or developing a better understanding of customers.
Businesses use a variety of tools to conduct data analysis. Some companies use large, enterprise data management software like SAP or Oracle. Others use Excel spreadsheets or basic business intelligence software that doesn’t require a high level of technical knowledge to use.
Data analysis has become an essential part of running a modern business. The ability to turn large amounts of information into actionable insights is critical in today’s fast-moving, competitive landscape.
What is data-driven marketing?
In a data-driven marketing world, businesses can make use of the data they gather from their customers to create more personalized experiences and predict what their customers want in order to target them more effectively.
Data-driven marketing is marketing that uses data from customer interactions (e.g., purchases, email opens, etc.) to drive decisions. It’s a holistic approach to marketing that uses data about customers and prospects to inform various aspects of the buyer’s journey.
It includes understanding who the customer is and what they need, creating a message that resonates with them, determining which channel or channels are best for connecting with them and measuring the effectiveness of those activities.
The benefits of using Data Analytics.
There are many benefits of using data analytics for marketing. Some of the benefits include:
- Increased understanding of customers and prospects
- Improved targeting of customers and prospects
- More personalized customer experiences
- Increased ROI on marketing campaigns
- A better understanding of customer behaviour
- Improved decision-making
- Increased sales
- More effective risk management
- Greater competitiveness
- Better strategic planning
How Marketers Are Using Data Analytics.
Now that we understand what data analytics is and the benefits of using it, let’s take a look at how marketers are using it to reach new and existing customers.
Marketers are using data analytics to:
Analyzing website traffic
Website traffic is often the first place marketers look when analyzing their online presence. Traffic helps you determine which campaigns are most successful and which need more work. You should also be looking at how long people stay on your site, what pages they visit and what resources they download. This will help you understand their needs so you can create a better customer journey.
Learn about your customers
Use analytical tools, like Google Analytics and Facebook Insights, to learn about your target audience, where they go online, what they talk about, what their interests are and what their preferences are. You can also learn from online scraping tools or from your own database as well as other sources like surveys or polls.
Defining your audience
Audience definition is the process of understanding who your customers are and what they need. This starts with creating customer personas, which are fictional representations of your target customers. Personas are based on data you’ve gathered about your customers, so they’re as accurate as possible.
Offer personalized content
Using the information you learned above, you can personalize the content on your website so that it speaks to the particular needs of each visitor. For example, if most of your visitors land on the homepage because they are looking for information about a new product you’ve just introduced, make sure there is a link for them to go directly to that page instead of having them search for it themselves. You can also offer customized landing pages based on their previous visits, demographics or any other information you have about the visitor.
Gain intelligence from competitors
The Internet is a vast source of data. Use it to your advantage by gathering information about your competitors.
- What keywords do they rank for?
- What are their most popular pages?
- What social media platforms do they use?
- What is the tone of their advertising?
All of this information will help you understand what strategies are working for them and how you can improve upon them.
Measure the effectiveness of marketing campaigns
One of the most important aspects of data-driven marketing is being able to measure the success of your campaigns. This includes setting goals before you launch the campaign, tracking the results and then analyzing that data to see what worked and what didn’t. You can use a variety of tools for this, such as Google Analytics, Salesforce or Hootsuite.
Analyzing which channel performs best at each customer stage
Most customers don’t go from being complete strangers to making a purchase in a single step. They go through different stages, and each stage requires a different marketing strategy.
For example, you might use social media to attract new customers, email marketing to build a relationship with them and then paid advertising to get them to make a purchase.
Data analytics can help you determine which channels are most effective at each stage of the customer journey. This will help you focus your resources on the channels that are most likely to result in a sale.
Marketers are always looking for new and innovative ways to reach their target audience. Data analytics is proving to be a valuable tool in helping them do just that. By understanding their customers and prospects better, they are able to create more personalized experiences that result in increased sales and a competitive edge.
Author Bo: Lori Gillen is a Blogger/Content Creator who is specialized in the field of Digital Marketing & Data Analysis with 5 years of experience. Currently working atChartExpo as a Senior Content Creator.