How Data-Driven Marketing Strategies actually help you enhance your Marketing ROI
There is an old business saying, “You can’t manage what you can’t measure.” This stands relevant back in the day as well as now. Think about it: It’s pretty hard to determine if a strategy is successful or not if there are no defined metrics or Key Performance Indicators (KPIs). With today’s modern customer demanding personalized and relevant experiences, the so-called “spray and pray” tactic is no longer applicable. This article will highlight 5 retargeting strategies that will help your business increase its marketing return-on-investment (ROI) and thus lay a foundation for your data-driven marketing strategy.
What is Data-Driven Marketing
Data-Driven Marketing is a marketing method that implements data from customers’ interactions and third parties to gain more insight into the behaviors and preferences of the customer. This marketing tactic aims at enhancing the customer experience. It can also create automated campaigns that allow marketers to focus their time on the business’s creative side. Data-driven marketing is one of the most transformational and beneficial marketing occurrences in a while. Ultimately, data-driven marketing aims to optimize companies’ marketing efforts and increase revenue.
Why does it matter to you?
There are lots of benefits to taking advantage of a data-driven marketing strategy. For one, ad spending and marketing messages are optimized to be shown only to the marketing campaign’s appropriate targets. While a one-size-fits-all marketing approach might work for some big brands, those are outliers. It is more beneficial for your business to make your marketing efforts more granular to resonate better with your different clientele bases. The younger generation especially appreciates personalized marketing content. More than half of millennial consumers (age 18 to 34) are less interested in a brand’s products and services if its content isn’t relevant.
Your customers have preferences that guide their thinking and behavior. Marketers like you can guide these. Having content and marketing tailored to your specific customer segments will build a lasting bond between your clients and your brand. As a business, you must generate data and use it to your advantage by applying it to your future marketing campaigns.
Collection & Segmentation of Data
While collecting data might seem like the main contributor to getting to know your audience, that data also needs to be representative of your customers. You need to know your clientele base inside out. Once that’s established, you can then trust your gathered data and proceed to manage said data. The data will be ever-changing, meaning you need to keep an eye on it throughout and develop a short term plan, as well as a long-term strategy.
Not every member of your target audience holds equal value to you. Different customer groups exist within your wider target audience, and it’s up to you to define those segments. There are lots of different ways to divide your audience. The most common practice is to divide your customers by demographic, but you can also divide them by other factors such as age or location.
It can also be useful to prioritize which segments are more important to you than others.
Segmentation will allow you to target each customer segment of yours at a specific time with their specifically preferred content. Segmenting your audience is particularly important with email marketing, social media marketing, and of course, retargeting, which we’ll dive into next.
You may already be using effective online marketing forms such as content marketing, paid search, or social media ads. However, retargeting is an important complementary strategy to add to these. Retargeting, also known as remarketing, is a form of online advertising that helps you keep your brand in front of potential customers after leaving your website. The majority of websites only convert 2% of web traffic on their first visit. Using retargeting, you can nurture your previously bounced traffic into conversions. Here’s a stat that will help drive the point home: retargeting ads are 76% more likely to be clicked on than a regular old display ad.
So how do we go ahead and retarget potential customers then? A good initial step is to use a copy that combats their initial sales objections. The implementation of cookies allows businesses to gain an insight into their traffic’s behavior and preferences. Remember, these people already were on your website; they just did not convert. Now you can use a retargeting ad to convince them of your brand and get rid of their final hesitations. If you’re not completely certain about what objections your potential clients might have, you can always get in touch with your sales colleagues. Since they are “on the frontlines,” so to speak, they will probably have invaluable insights into the concerns and no-go’s that prospective customer’s voice. Another way to determine pain points that your customers believe in your product or service is to scour through reviews about your business.
While retargeting campaigns have huge upside, setting them up can be a challenge, which is why it makes sense to get in touch with an expert.
One tactic that you can use to grasp prospective clients’ valuable attention is to use discounts and limited-time offers. Comparison shopping has been drastically changed since the advent of the internet. Now shoppers can compare prices in rapid succession to find the best deal. This risk can be mitigated by sweetening the deal with a limited time offer or a discount. Using these subtle techniques, the prospect’s fear of missing out (FOMO) is triggered, and interest in you and your services will be reignited.
Data-driven marketing is proven to increase clicks as well as increase conversions, compared to traditional marketing. Ranging from the initial collection of data via cookies to the retargeting phase, be sure to follow through with this transformational marketing strategy as it will be hugely beneficial for your business.