The Data-Driven Marketing Advantage: Leveraging Data to Gain Market Intelligence
by Tim Weinheimer
Data-Driven Content Creation Drives Customer Value
At White Lion, we believe the key difference between data-driven marketing and the traditional approach is that the data-driven method focuses on generating value for customers. Instead of relying on assumptions or intuitions about customer preferences and behaviors, brands can look at reliable, accurate information about their real-life actions.
This enables brands to develop marketing strategies based on actionable insights. Data-driven digital marketing services reduce waste and inefficiency by targeting audiences that are most likely to convert.
This enables organizations to manage and maximize profitability of their marketing investments. Actionable insights and visuals support strategic business decisions, drive cost reduction, and improve contract pricing. 93% of Deloitte survey respondents are committed to improving cost data with visual analytics.
There are many ways brands can put data-driven content creation into practice. These approaches range from simple customer messaging efforts to elaborate segmentation and data cataloging systems that come close to the ideal of personalized, one-to-one marketing.
For example, Vineyard Vines uses predictive analytics and cross-channel communication to communicate with customers on their preferred platforms, generating a 182% return on their marketing spend compared with their previous “batch-and-blast” approach. The ability to quickly generate personalized content is central to their success.
Vineyard Vines successfully predicts the products that customers want by gathering customer data and identifying customers with affinities for certain product groups. This goes far beyond what a generalized marketing campaign can achieve.
Customers reward this approach by increasing purchase frequency and basket size. A 2019 BCG report found that, on average, retail customers bought 110% more times, spending 40% more per order when exposed to a highly personalized shopping experience. Importantly, these customers also provided 20% higher net promoter scores compared to customers shopping without personalization.
It should come as no surprise that retail leaders in that report said they would increase their investment in data-driven personalization by an average of 10% per year. Most people are already desensitized to generic ads that don’t accurately reflect their current needs. But they are highly receptive to promotional content that actually delivers value.
Originally published at https://www.wlion.com.
