How Data Driven Marketing Improves Your ROI
Imagine taking a road trip somewhere you’ve never been without GPS. You may make it to the interstate, or even a few cities beyond your hometown, but the further you wander away from home, the more likely it is you will make mistakes. You may miss your turn or travel down a one-way street in a small town without clear directions. Effectually, your road trip can quickly become an exercise in futility when you have no sense of direction.
Much like your road trip, your marketing efforts require directions. Effective marketing departments get their marketing directions from data.
What Is Data Driven Marketing?
Data driven marketing is strategic. Data driven marketing is the use of data to align or realign your marketing efforts based on results. However, data driven marketing goes well beyond results; it also improves your ROI.
The following are ways data driven marketing can improve your profits.
Do More with Less Money
When you rely on data to shine a light on what’s working for your organization, you can reduce your marketing budget. With more data, you can identify who your target market is and avoid wasteful spending. With the right data, you can target potential customers based on their age, where they live, or how much money they make.
Additionally, knowing your audience reduces your cost per click (CPC). Since Google bases your CPC on factors associated with both you and your competitors, a thorough understanding of your target market will help you determine your competitors. With more knowledge of your competitors, you won’t have to cast a wide net when it comes to your advertising budget. You can focus on your closest competitor (the one Google looks at) and your quality score. Doing this will reduce your budget and improve your ROI overall.
Eliminate Ineffective Marketing
Without data, how will you know what’s working? You can’t. Data driven marketing allows you to measure the effectiveness of your marketing campaigns, promotions, and your customer engagement. By using digital analytics, another form of data driven marketing, you can determine what campaigns are holding you back and invest more in the campaigns that are successful.
Maximize Your Returns with Market Segmentation
Your customers aren’t homogeneous. As such, engaging them may require you to use different marketing techniques. Fortunately, by relying on data, you can easily determine what marketing efforts work for any of your marketing segments. Armed with this knowledge, you can create more effective campaigns that increase your ROI.
If your internal marketing department isn’t aligned with your organization’s strategic direction, we encourage you to give us a call today. Our team at Padron Marketing can help you get your marketing back on track by unleashing the power of data driven marketing in your business.Tags: big data, business intelligence, data driven marketing, ROI