Data-driven marketing is marketing today. Pure and simple.
A concerted data-driven marketing strategy built around first-party data collection and utilization is how leading businesses deliver personalized experiences to target audiences.
But such a strategy is only possible with the right technology in your company’s stack.
Specifically, a solution that helps your streamline and scale your digital marketing efforts, analyze customer and user behavior, and deliver high-quality customer experiences.
Data-driven marketing strategies: What modern, successful approaches look like
When you hear most CMOs talk about growing their organizations’ respective data-driven marketing strategies today, they typically refer to more intricate, customer-centric use cases:
- Utilize individual-level customer data to bolster their individualized and personalized marketing across channels (e.g., social media ads, email marketing campaigns).
- Enhance the on-site customer experience for known and anonymous visitors through conversion rate optimization tactics like on-site landing page dialogues.
- Merge customer journey analytics tools data into a central database to more capably track the typical path buyers take when purchasing products or services.
- Orchestrate custom-tailored lifecycle marketing geared toward individual customers by tracking their micro touchpoints and interactions at a granular level.
What do all of these data-oriented techniques have in common?
They all entail data liberation. That is, they involve the real-time activation of relevant, accurate first-party data to better engage and convert contacts at various lifecycle stages.
The problem is some of these CMOs and their teams still rely on a mix of first- and third-party data to execute core tactics (e.g., retargeting campaigns, lookalike modeling).
It’s data-driven marketing leaders, however, who solely utilize first-party data to accelerate their programs.
In fact, these executives solve another longstanding marketing problem by employing first-party data, per Gartner Distinguished VP Analyst Andrew Frank. His recommendation?:
“Tame the titans by increasing dependency on your first-party data and maximize consent to combat the walled gardens.”
And these execs (and their growth-focused teams) have reaped the rewards for this shift.
Data-driven decision-making enhanced with real-time, single customer view
A Boston Consulting Group study found brands with advanced first-party data activation processes earn 1.5 to 3 times more revenue than companies that fail to utilize the data.
The same consulting firm, however, also discovered the single customer view was vital to data-driven marketing success. But few brands have achieved such a view:
“Only about 30% of companies, almost all in the connected or multi-moment maturity phases, practice such advanced uses as single customer view or lifecycle marketing.”
The concept of a single customer view isn’t new.
A leading bricks-and-clicks retailer, for instance, prioritizes the single customer view in its ecommerce marketing. It merged all online and offline customer data.
This view enables its marketers to better understand shoppers. Ultimately, this helps them deliver personalized messages and experiences to those individuals and boost loyalty.
What is new to many marketers (and other teams), though, is their collective realization they sorely need this view to build and sustain thriving data-driven marketing strategies.
Econsultancy’s 2019 Digital Trends report found 42% of brands indicated “improving customer intelligence and insights for a holistic customer view” remains a top priority.
Some companies use campaign monitoring and management tools, marketing automation platforms, cloud suites, or a mix of tools to attempt to create a single customer view.
But these businesses have come up short.
The simple reason? None of those tools or setups offers the ‘complete’ customer view. One required to deliver relevant, timely messaging to individuals across customer journeys.
Even if they have gotten close to creating this view, the time and resources needed to set up and maintain it hinder marketing’s speed, efficiency, agility, and flexibility in their day-to-day.
Creating a data-driven culture requires understanding of goals — and data
The primary purposes of implementing a data-driven approach are twofold:
- 1) Properly leverage first-party data to amplify marketing ROI and revenue.
- 2) Build better customer relationships through a collaborative focus on CX.
But this data is no good to marketers without a centralized database.
As Goodway Group VP of Enterprise Partnerships Amanda Martin told Econsultancy:
“There are still a lot of siloed data sources … needed to map the customer experience. If you can unite them internally, the value of your first-party data is even greater.”
Simply put, a data-driven approach won’t prove worthwhile if everyday marketers (and other growth-focused teams) don’t understand how they can properly utilize their data.
Five in six business leaders at enterprise brands cited data literacy as an essential skill they want their staffs to gain by 2025, per an Experian Global Data Management survey.
It’s clear companies can take advantage of ‘owned’ data points with the right technologies in their stack. Including and especially, a marketer-friendly customer data platform.
Mastering data-driven marketing and unlocking new opportunities with a CDP
Consent management capabilities. Multi-dimensional segmentation. Predictive modeling.
Pure-play CDPs like BlueConic offer these capabilities (and others) to ensure companies can streamline their data-driven approaches and leverage their wealth of first-party data.
Another lesser-known pro of the platform for marketers, though, is the (many) new opportunities it affords them regarding the growth of their team and long-term goals.
The data-driven marketing teams with truly prosperous and profitable programs — and a user-friendly CDP to guide their efforts — routinely open up now avenues, so to speak, to advance their promotional efforts via strategic experimentation.
That is, they assess and employ new creative approaches to test. Ones that are informed and backed by unified, democratized customer insights in their database.
For example, BlueConic’s segment comparison feature enables marketers who use our platform to glean insights for all contacts. In turn, they can use overlapping interest data to determine the ideal content to deliver to segments with shared interests:
That means they can leverage messaging that was perhaps originally intended for just one segment (e.g., Open-Time Email Recommendations) for multiple segments instead.
With a CDP driving your data-driven marketing, you also free up time focus on the art of marketing, not just the science (e.g., predictive analysis/modeling). For instance, you could:
- Test out new advertising and marketing channels and approaches (e.g., behavioral ads).
- Create new interest- and location-centric content marketing assets for various segments.
- Build an on-site messaging strategy to convert more visitors (e.g., personalized deals).
- Construct a framework for a new or modified customer loyalty or subscription program.
- Develop second-party data partnerships to better monetize your first-party data sets.
Which CDP to get as your data-driven marketing hub depends on your use cases.
Suffice to say, investing in a pure-play CDP is your best bet to develop a scalable, streamlined data-driven strategy. And one that helps your business transform for the better.
Get insights into 10 popular CDP use cases and how each helps brands develop and refine their data-driven marketing strategies in our on-demand webinar.