Understand the Value in Data-Driven Marketing

In the past, marketing involved a lot of guesswork and a reliance on gut instincts about what customers want. With the new wave of digital, we have been given the gift of knowledge, facts and statistics. Now all we need to do is gather, understand, and apply.
Published on Aug 27 2015 by Laura White

Have terms without the ‘digital’ affixation become obsolete? The digital wave indeed pulls with a strong force. When I first started my degree I knew I wanted to go into business, but had no idea into which area specifically. I now find myself taking a hop, skip and a jump across traditional marketing, and straight into digital marketing.

 They are of course one in the same, only modernised. The growth of the marketing and business scape has called for an increased advancement in technology. Just like almost every other industry has in recent times. This has resulted in new and improved ways of customer communication, increased reach and ultimately a more targeted way of doing business.

 As we all know (no matter our age), what we learn during our education courses (whatever they may be) can become swiftly outdated. Some topics and subjects are only able to scratch the surface simply due to the speed of innovation. A lot of what we learn and know comes from reading thousands of articles online, and attending seminars.

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 I recently attended a Masterclass held by Google Partners in Melbourne. Google Partners is a Google program designed for agencies, digital marketing professionals and other online consultants. The seminar covered topics such as Google Analytics, Analytics for Data-Driven Marketing, Pricing, Negotiation and a reflection from the presenter David Booth regarding his own agency’s journey.

 There were a few topics that really resonated with me, that I think are vital for business owners, marketers and digital professionals like yourself should be aware of.

 Today I want to go into more detail about:

 Analytics for Data-Driven Marketing

 We all know that data and analytics can be a bit of a dry subject area, but never the less a powerful tool for business success. Just like the days back in high school math class we asked ‘when and how are we ever going to use this?’ By getting a response to this question, it instinctively became easier to understand once we could apply the knowledge to real life situations. The same goes for data and analytics when used in marketing. 

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Why do we need it?

 We use data and analytics to provide us value. We are able to define the real goals and KPI’s of the business, track these KPI’s and conversation, and then analyse the data to create value.

 Measuring business goals is essential, as you know already, to your businesses success. We ultimately want to be able to track customer value, profit margins, revenue, costs, number of customers and customer satisfaction. We can do this through data and analytics; now you’re thinking ‘hmm, maybe I should have a deeper understanding of this analytics stuff’.

Screen Shot 2015 08 20 at 5.00.07 PM Seen this? Of course you have, and if you haven’t, it makes intuitive sense. So how do we give value and track these aspects of the customer lifecycle with data and analytics you ask? 

 Data and analytics enable us to eliminate a lot of the guesswork previously done by marketers and business owners.

mouse cursor hand pointer icon templates for designersWhat does it look like? 

 Perhaps the simplest form of analytics is counting clicks, shares, plays, or anything that lets us know the reach and frequency of our efforts. Unique page visitors is a great one, along with the average time spent on the page so we can determine whether or not our content is being read by the visitor. Simply attracting a customer is not enough, click through rates are nothing without successful conversions. And I can’t say this strongly enough – make your call-to-action clear and obvious – what do you want the customer to do on this page? What is the desired outcome? Once you answer this, you can model what ever it is you have built – whether it be a blog post, webpage, social media post, video – to attract the most customers.

 …And now?

 Once you start collecting all this data, you will be able to see what you are doing well, and the areas in which you could improve upon. There are plenty of applications that track this data and make sense of it for you. Many companies have their own tools. Google has ‘Google Analytics’ just as Facebook has ‘Insights’. Wordpress, Magento, Silverstripe and other content management systems (CMS) also have analytics pages included, so you can track everything.

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 We all know that the retention of existing customers is imperative to cash flow and revenue, but we also need to nurture leads in anticipation that they could convert to customers. EDMs are a great way to keep in contact with your existing client base – as well as attracting new customers. You can do this by offering free content in exchange for personal details, containing that valuable email address.

 Social media is a beautiful thing. It has provided an outlet for satisfied customers to boast about our product or service. This type of business advocacy is the best thing to happen to business owners and marketers since online stores. Essentially, you have free advertising. Yes, FREE ADVERTISING, so make the most of it. See how you can do this here with our 'Social Media Guide'.

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 ***Remember, although data and analytics may seem daunting, this tool is a necessity in todays digital business climate. We've been given the gift of knowledge, let's use it.