Data driven marketing, also known as DDMA (Data Driven Marketing Automation), is a broad concept that encompasses various processes—from data collection, analysis, and interpretation to utilizing this data in a company’s future activities.
The popularity of this marketing form has surged in recent years alongside the growth of the Internet, particularly online shopping. According to a report by Santander Consumer Bank, 88% of Poles now shop online, and 60% of respondents admitted to shopping more frequently in the last year than in previous years (data from February 2024). Brands are competing to reach customers in the most optimal, personalized way.
Data driven marketing is currently regarded as one of the most effective marketing strategies. This is not without reason—properly collected and utilized data allows companies to target potential customers more accurately while simultaneously improving processes for existing customers to retain them longer.
Data Driven Marketing Step by Step
Setting Goals
A clear understanding of what you want to achieve will help you get the best results in the shortest possible time. This way, you can avoid sifting through irrelevant data and focus only on what is essential. Do you want to analyze the layout of your website and its impact on customers? Optimize your mailing list? Change your advertising strategy on social media? These are the questions worth answering before diving into the world of data.
Data Acquisition
If you want to implement a data-driven marketing strategy, you obviously need to have data. As users browse the Internet, they leave behind a digital trail of their preferences, which can be observed and utilized in marketing. This data can be collected from your own sources, such as your brand’s website, or by using third-party data.
One of the most popular sources is Google—Google Analytics, Google Ads, and Google Search Console. Here, you can find most of the crucial data, such as information on clicks, time spent on specific pages, and even demographic data, which will help segment users into target groups in subsequent steps.
However, data acquisition is becoming increasingly challenging each year, especially within the European Union. When collecting data, you must ensure that the entire process complies with GDPR regulations.
Data Analysis and Interpretation
The process of data analysis is now automated; there is simply too much information to sort manually, especially in large companies. Mentioning tools like Google Analytics was a bit of a preview—they are among the tools that analyze collected data, providing valuable insights about customers.
Data interpretation, however, is entirely in our hands and is the most crucial step in the data driven marketing process. The conclusions drawn from the presented data will determine the steps we take in our further marketing strategy. Therefore, it’s worth investing extra time and effort in conducting a proper data evaluation. According to a 2022 Statista report, the most frequently conducted analysis was customer journey mapping. When correctly interpreted, such data provides valuable insights into our website and how its layout affects customer behavior.
At this stage, it’s essential to refer back to the goals set earlier and ensure that we draw the conclusions needed to achieve our objectives.
Data Implementation
By data implementation, we mean all actions taken as a result of data analysis and interpretation. Most often, this involves creating data-driven advertising campaigns tailored to the individual needs of the customer. With the collected information and its precise analysis, we know what changes are needed and where to introduce them to reach our customer base. Once again, referring to our goals is crucial.
Benefits of Data Driven Marketing
More and more brands are opting for data driven marketing. The ratio of results to costs is simply incomparably better than when advertising “blindly.” It guarantees maximum return on the work invested in advertising and allows us to understand customer preferences better than ever before through the analysis of their individual behaviors. This strategy not only enables better targeting of new customers but also positively impacts their experience with the brand, increasing the likelihood of them returning to our company in the future.
FAQ
- What are the key elements of an effective data driven marketing strategy?
Answer: The key elements of a data driven marketing strategy include precise goal setting, effective data acquisition, thorough analysis and interpretation of gathered information, and implementing the analysis results in marketing campaigns. Each of these steps is essential to achieving success and maximizing marketing efforts. - What data analysis tools are most commonly used in data driven marketing?
Answer: The most commonly used tools in data driven marketing are Google Analytics, Google Ads, and Google Search Console. These tools allow for the collection, analysis, and interpretation of user data, enabling better customization of marketing campaigns to meet customer needs. - How does data driven marketing impact conversions and ROI?
Answer: Data driven marketing significantly increases conversions and return on investment (ROI). Through precise data analysis, brands can create more personalized campaigns, leading to higher effectiveness and better returns on marketing expenses. - What are the most common challenges in data driven marketing?
Answer: The most common challenges in data driven marketing are acquiring high-quality data, ensuring GDPR compliance, and accurately interpreting the data. To overcome these challenges, companies must invest in the right tools and training. - Why is personalization in data driven marketing so important?
Answer: Personalization in data driven marketing is crucial because it allows for the creation of more engaging and effective campaigns. By analyzing data on customer behaviors and preferences, brands can tailor their marketing messages, leading to better results and increased customer loyalty.
