Digital marketing is now a staple within industries. Many brands use these agencies to boost their online presence and overall revenue.
But what happens when even digital marketing transforms with today’s ever-changing speed? Should your company remain within the reigns of traditional practices or try looking at things through a new lens?
Stay with us as we tour the data-driven marketing agencies world and learn what they are, their benefits, and what you can do to take your company to the data-driven world.
What’s a Data-Driving Agency?
Data-driven is a term used to describe agencies that focus on taking their marketing strategies to the next level through data and analytics.
This data comes from measurable aspects of campaigns, such as customer demographics, behavior, and other metrics.
Nowadays, more marketing agencies and brands seek to get data-driven results. For example, the streaming platform Netflix, which has around 230 million subscribers, works with algorithms to frequently give customers the content they enjoy. Other media platforms, like TikTok, Twitter, and Facebook, have data-driven operations.
Of course, just saying that making marketing decisions and strategies based on data is reliable is not enough. Understanding the differences between traditional marketing and data-driven marketing efforts is crucial.
Differences Between Traditional and Data-Driven Agencies
Today’s world keeps walking the automation road. More digital strategies appear often in every industry, and marketing is no exception.
The traditional marketing approach is through intuition and knowledge. The new tendencies are powered by data, providing a more reliable source of information.
Needless to say, traditional marketers possess an extensive amount of expertise and knowledge in their fields. But taking that knowledge to the next step can help them become a force to be reckoned with in their area.
Picture this: a traditional marketer thinks the entire process starts with a worthy product, and they construct their campaign based on how they believe the product or service will perform. A data-driven marketer has the same belief but creates data projections based on the product or service’s demand, market, and more.
Logically, most brands will find the data-driven approach is safer, even if both are basing their campaign on the same idea because the data-driven marketer provided real numbers based on research. That’s not to say traditional marketing strategies are not good, but they showcase the importance of staying up-to-date with today’s tactics.
The Analytics You’ll Need to Be a Data-Driven Marketing Agency
When you want to be a data-driven marketing agency, you must consider which metrics are essential for your company.
It’s not a matter of having tons of data but having the right information in the correct amounts. For example, customer demographics like age, gender, geographic location, income level, and other relevant information can be a game-changer when launching a new product or offering a service.
Using reliable data is essential to become this type of marketing agency. Ensure you work with high-quality data that can provide insights into social media, eCommerce, and any other business you’re working with.
Data-Driven Marketing — The Main Activities
Once you know the data you need, you must understand the vital data-driven marketing activities. When doing data research, go through these checkpoints to ensure you are delivering the best results possible:
- Campaign tracking: When providing information to clients about marketing campaigns, you want to put out performance data. More importantly, when you go through this information, you gain insights into what needs further optimization and what’s working how you want it to. You want to deliver data analysis on your Google Ads or any other platform you use to set ads. Consider adding information such as website metrics.
- Customer segmentation: Understanding the target audience is a must for an excellent campaign performance. Using analytics like customer demographics and behavior (understanding their needs, what drives them to purchase the product or service, etc.) can help you deliver an effective marketing campaign.
- Personalized data: When you use data for targeted marketing, you must do a personalized data collection. Understanding a customer’s wants and needs can be the differentiating factor between other agencies and yours. Use tools like surveys to make your digital campaigns as personalized as possible.
- A/B testing: A marketing that uses one campaign with no changes, even if it isn’t providing the results they were expecting, is not utilizing all its resources. Ensure you have campaign alternatives and use the one that provides the desired outcomes.
Want to Know How to Implement It? We Got You
Data-driven marketing is a chain of actions. You must know the analytics and the activities you must complete, and then know how to implement this information.
Work With the Best Tools
For starters, you need an excellent reporting tool. If the goal of this marketing strategy is to work through data, then you must have an effective way of collecting this information.
Analyze Your Data
Next, and perhaps one of the most crucial steps within this chain, is data analysis. Collecting the data but not analyzing it might not make a difference. Instead, ensure your data goes through the people with strong analytical skills in your team.
Jump Into Action
You have analyzed data, so it’s time to take action. If the analysis throws some valuable information on what could be improved or provides insights into what is working but could be polished to even shinier reflections, then don’t hesitate to take the step.
Don’t Be Afraid to Experiment
Don’t be shy, experiment. The beauty of data-driven marketing is that it gives room for experimentation. Don’t be afraid to try new techniques and see what could give your customers a new service.
You Know How To, Now Know Your Tools
As you saw, you must work with the best tools to ensure you provide the best possible results. But how do you know which instruments you need? What should you take into consideration? Look below to understand everything about what will help you gain and organize the marketing data you collect.
- Data analytics: Tools like Google Analytics can help you collect and explore data. With a data analytic tool, you’ll make decisions and create data-driven marketing strategies.
- CRM systems: When you want to understand your target market, you must include customer relationship manager systems. Collect, analyze, and manage this data with tools like HubSpot and understand your target market from an insider point of view.
- Data visualization: You must work with tools that make visualizing and understanding your collected data an easy task. Using a data visualization tool like Google Charts will help you make the right decision based on the collected information.
- A/B testing: Tools like Google Optimize allow you to see which one of your websites or product strategies aims to reach your goals.
Data-Driven Marketing: Best Practices
Regarding best practices in this type of marketing agency, there is no prototypical approach to it. However, there are some things you can take into consideration to make the most of your marketing campaigns.
- Define your objectives: To create a valuable campaign, you must know your goals and objectives. Once you know what results you want from the campaign, it is easier to create strategies and determine which data you’ll need.
- Ensure you’re working with valuable data: You must ensure you’re handling your project through the best data available. Use tools like surveys or interviews to understand the market you’ll be working with, and rely on high-quality platforms like Google Analytics for more complex information. Taking these measures will help you deliver the best results for your clients.
- Be thorough with your analysis: If you’re working with analyzed data, you must verify the process was thorough. What you want is customer data that is easy to understand and read to help create marketing tactics more easily.
- Ensure you’re staying within the law: While the new calling is to work with data, data privacy is a notorious concern in the online world. Make sure your track record and data use complies with the law. The US has seven states (California, Virginia, Connecticut, Montana, Utah, Tennessee, and Colorado) with established laws regarding data privacy. Other states are currently going through legislative processes.
- Make data delivery effective: If you go through the efforts of creating readable reports, you must ensure the data you share with your teams and clients is just as easy to understand. Especially when sharing results with customers, try not to provide clustered, marketing-specific information. Give them reports that won’t need the help of search engines to read through.
The Benefits of Data-Driven Marketing
By using data-driven strategies, you open a world of possibilities for your company and clients.
Learning data such as bounce rate (how quickly a visitor leaves a webpage), or using the correct data to understand who you should be targeting is crucial to set yourself apart from your competitors.
When you understand the customers’ touchpoints, you can create better digital marketing strategies. Learning about where the visitors are coming from, how many go through the purchase process, and how many leave the page without completing it can be valuable information for your clients (and for your campaigns, too!)
Frequently Asked Questions
- What Are 3 Types of Data Marketing?
Most marketers focus their efforts on these three types of data:
- Financial: This type of data helps you organize your campaign costs and margins. Include pricing information of your competitors to understand who has the best offers.
- Customer: You must understand your client’s target audience. Names, purchase history, contact information, and any other details that help you understand what their needs are.
- Operational: Ensure you have an optimized process. From campaign performance to client reports, collect crucial information about your company’s performance.
- Why Is Data-Driven Marketing More Important Than Ever?
Data-driven marketing is now more crucial than ever due to the rise of digital marketing. Digital marketing services have increased in demand due to today’s digitalization. To provide a top-notch digital marketing campaign, consider making data-driven decisions.
- Does Amazon Use Database Marketing?
Yes, it does. Amazon uses data science to optimize its prices and understand the market and customer behavior. Furthermore, Amazon has an algorithm that collects information and analyzes clients’ product viewing and purchase history.
Data-driven marketing agencies are on the rise. Learning to make the most of this digital marketing strategy can be a game-changer for your company. We hope this article gave you all the information you need to begin your data-driven decision journey. Thank you for staying with us until now!