Data-Driven Marketing – Your Way Towards Higher Conversions

One of the biggest benefits of digital marketing is its incredible focus on data.

Unlike billboards and print, digital marketing allows you to get a deep understanding of how your messages are working and how your audience behaves. You can then use this to make better decisions and stop wasting resources on users and campaigns that don’t convert.

In many ways, data marketing is the pinnacle of the trade – it allows you to get a complete image of all your marketing efforts and reach the right users with the right message.

However, to make the most out of data-driven marketing, you need to understand its origin, rules, and the best tools to execute it. In this article, we will cover all of this and give you some useful tips to make your marketing strategy more data-centered.

What is data-driven marketing?

Data-driven marketing is a specific subset of digital marketing that leverages user data to increase the effectiveness of campaigns.

In most cases, when we speak about data in this context, we mean user data. The way your audience behaves and interacts with your content can tell you a lot about your marketing campaign, social media channels, website, or even your product. You can also use other data like social media analytics to see which channels work best.

Once you know how and where to find this data, the data marketing approach requires you to engage your users with personalized messages that convert. To do this, businesses create sales funnels that define where each user is in their customer journey and which messages should be used to address those users.

From all of this, you can probably tell why data-driven advertising is so popular. It allows you to make all of your decisions based on smart insights and get better results. It’s perfect for digital marketing, you can use it throughout the whole cycle: from the first time a user hears about your brand to the moment they become a loyal customer.

How is this different from traditional marketing?

Analyzing user behavior to make smart decisions has always been the focal point of good marketing strategies. Focus groups and market research still have an important place in marketing and are often used to identify trends.

However, data analysis in digital marketing has several advantages compared to the traditional approach. For example, it’s more accurate. While surveys and focus groups rely on customers’ statements (which aren’t always 100% honest), data never lies. The data you get from your digital channels is accurate and tells you exactly how your users interact with your brand.

It’s also more affordable and updated in real-time, so you can access it whenever you want and track changes. This is useful when you make a small modification to your marketing strategy and you want to instantly see how it’s affected your results.

The benefits of data-driven marketing

Why should you embrace a data-driven marketing approach?

Here are some reasons to consider focusing more of your attention on marketing data.

Here is how you can make your way towards better results through marketing data and personalization.

Step 1: Collect user data

As you might have expected, our first step is collecting user data.

If you’ve set up your digital marketing strategy properly, your customers should have lots of contact points with your brand online. Your social media, email, various touchpoints on your website (live chat, contact forms, product pages) – all of those are potential sources of valuable data.

The most obvious path to take here is Google Analytics. You can use it to see which demographics are visiting your website, as well as how they interact with the content. For example, you can see which pages are getting the most visitors and how much time those visitors are spending on each page:

However, there are some less obvious (but equally useful) ways to get user data from your website.

You can use heatmaps to see an exact overview of user behavior – where they scroll, where they click, and where they move their cursor. It’s the perfect visual story of your website interaction that can allow you to provide the best experience.

Investing in a CRM system is also a great way to track user data. Most such systems have elaborate analytics dashboards that show you all you need to know about your audience: demographics, purchase habits, previous interactions with your brand – their whole customer journey, essentially.

You can also find user data in your social media (Facebook is more detailed than Instagram or LinkedIn) and mail client analytics.

Whatever you do, make sure you’re up to date with the latest GDPR rules. You need to know when and how you can use customer data to avoid potential issues with users and regulatory agencies.

Step 2: Turn data into smart data

Raw data is useless unless you take it and put it into context. You need to analyze the data and make some conclusions that will give you a good base going forward.

The best way to do this is to use audience segmentation. So, once you’ve identified how you’re going to get user data and started extracting it, you need to start segmenting your audience. That will get you one step closer to understanding your users and, more importantly, engaging them with tailored messages.

You can segment your audience based on various factors you extracted from your data. Here are some popular techniques.

Step 3: Create funnels

A good way to precisely track user data and engage each user with personalized messages is to implement a sales funnel.

This funnel is often used as a framework to help you track conversions and give some structure to your marketing communication.

It’s generally accepted that sales funnels have these four stages:

You’ll find various examples of sales funnels online. They might have different names for stages or even introduce a few more but they all promote the same idea: identify where your users are in the purchase process and engage them with the right message to get them to the next stage.

Step 4: Surprise users with personalization

When you start creating messages to reach out to those users, you might want to check out some personalization techniques.

The fact that their offer is slightly personalized based on their interests, previous purchases, and demographics is bound to help. But, some advanced personalization might be just what you need to achieve that “wow” effect and impress your potential customers.

At Hyperise, we call this hyper-personalization, and we use it with images to achieve awesome results.

How does this work in practice?

Well, for example, you can personalize your website so that each visitor gets a tailored experience. Personalized CTAs can increase your conversion rates by up to 202% and users will certainly be impressed when they see their name.

You can also personalize your outreach efforts if you’re selling products more directly. With the use of name tags, thanks to our collaboration with TexAu, you can easily create personalized messages on LinkedIn that could end up looking like this:

This highly personalized approach uses customer data to deliver a customized message that includes your prospect’s name, the thing that connects you, and a personalized image.

Register for a free trial of Hyperise to try it out!

Step 5: Measure your success

Lastly, you want to use campaign data to see if your approaches are working.

You should be looking at your analytics regularly and use the information to change things around.

Here are some metrics you should pay special attention to.

Data-driven marketing: the final word

Missing out on the wonderful world of digital marketing data is one of the worst mistakes you can make.

It would be a shame to waste such an opportunity to learn more about your audience and all the ways you can improve your marketing efforts. So, keep a close eye on your metrics and get as much user data as possible. Then use it to deliver tailored messages to different audience segments and watch how everything works!

If you want to see how advanced personalization works, try out Hyperise.

Register for a free trial and see how customized messages can do wonders for your campaigns!