Marketers haven’t always relied on the data for making decisions. And even to date, very few marketers are confident about the quantity and quality of the data for effective decision-making. Considering this, it may be a surprise that marketers are now considering shifting to data-driven decision-making. According to the information given by Econsultancy’s Future of Marketing Report, it will be one of their top agendas in the future for at least two coming years.
A survey included 76 clients, agency-side marketers, and vendors. According to the report, 37% said that data-driven decision-making would be one of their top 3 priorities in the future. The other 35% suggested improving the customer experience and engagement as one of the top 3 priorities.
Another 30% stated that the top 3 areas on which they will focus in the future for the coming years are maximizing marketing effectiveness and optimizing budgets. It was followed by the other 24% who said that they would prioritize improving the understanding of the customers to make their buying experience pleasant. 23% pointed towards focusing on the brand identity and enhancing the brand’s loyalty. The other areas that only 14% of marketers agreed to focus on include improving personalization and targeting capabilities and integrating and benefiting from automation, Al, and machine learning.
Why Is There A Need for Empathy?
The customer experience is at the top of the list of areas on which marketers will focus in the next two years. According to the survey, every 6 in 10 respondents have agreed that the ability of marketers to navigate the changing customer behavior and improve the customer experience will play a vital role in the success of their businesses.
While meeting the customer’s expectations to give them the best user experience, marketers believe it is crucial to develop empathy for customers and deeply understand their needs and preferences. 6 in 10 respondents reported that it is a critical factor that no one can ignore. An additional 32% also said that this would be very important.
Understanding the customers in a better way has become a well-established priority for marketers. According to other research, marketers believe that the best way to have a long-term relationship with customers is by developing an emotional connection, humanizing their needs, and understanding the emotional drives that help them make a purchasing decision.
In addition to empathy, marketers also think they must have a combined approach to the customer experience across different internal teams. 49% of them claimed it to be ‘Critically important. The other 47% acknowledge the importance of having customer-centric digital skills to make things work. By comparison, very few marketers, i.e., only 37%, believe that having a single customer view is critically important.
What Are the Benefits of Using Data-Driven Decision-Making In Marketing?
There are various ways data-driven decision-making can help marketers do their job more effectively. This way, they can convert the data assets into sales.
Here are a few benefits mentioned that marketers could enjoy by taking advantage of the data they extract internally or externally from multiple sources.
Precise and Better User Personas
With the help of data analytics, you can have detailed knowledge about user personas. For instance, you can know about your consumers’ purchasing history, demographics, online activities, and more. You can then use this data to tailor consumers’ content on their screens. For instance, if your target audience is those who have recently moved to a new place, you can target them with personalized content based on the information or data you have regarding their location.
Moreover, you can also keep updating the data to understand customers’ current needs and preferences. It helps marketers create personalized content for the target audience. This way, they can get more return on investment at the end of the day. Since the digital world has reached another level of technology and advancement, artificial intelligence also helps make the data analytics process more precise over time.
You can also minimize the marketing expenses once you start making data-driven marketing decisions. This way, you will get to know which tactic is going to work to help you achieve your business goals and objectives. You can also analyze and compare the relevant KPIs (Key Performance Indicators). You won’t have to rely on your gut feelings anymore, but the adequate statistics and numbers.
It is pretty challenging to find correlations in data. However, when you start applying data-driven strategies, you can see which factor affects the other. It will further help you see how your marketing efforts will pay you off by providing a complete picture of different elements and their relationship.
When you implement the right data-driven marketing strategy, you can predict future behavior and pattern of your marketing campaign and customers. It is crucial for you as a marketer to predict the campaign’s success using predictive analytics tools. For instance, with the help of predictive analytics, you can identify the potential customer’s lifetime value in addition to its purchase history, age, employment, location, etc. With this informative knowledge, you can also attract specific consumers with the content or ads you publish on the site.