May 27, 2020
According to Forbes, over 90 percent of all the world’s consumer data has been created in the past two years alone. With the immense amount of data available, it sometimes feels impossible for marketers to wade through and understand how to use it. However, being able to read and understand data analytics could provide valuable insight and help you draw informative conclusions about your customers.
Consumer data can be used to optimize the customer experience by giving businesses the knowledge they need to establish more effective marketing strategies. It enables brands to identify consumer behaviors, understand their ideal consumer segments, and produce personalized campaigns to improve brand reputation and experience.
By utilizing this data, businesses are proven to achieve higher return on investment (ROI), stronger customer loyalty, increased frequency and engagement, and larger ticket sizes. Also, by targeting specific consumer segments with tailored messages, marketing dollars can be saved. When you’re not sending general campaigns to any unknown audience, you’re helping to avoid spending on people who may not care to engage with your brand.
In order to reap the benefits of data analytics, businesses should follow The Three A’s Process of collecting data – accessibility, accuracy and action. This process ensures the success of their marketing strategies through properly cleansing, organizing, collecting, and implementing refined campaigns.
Data can come from third-party databases, IP targeting campaigns, first-party opt-ins, and preference centers. However, once the data is collected, it should be cleansed and organized in a way that makes sense for your business. You’ll want to be sure to understand what data you have, as well as how to use its insights. Once the gleaning process is set up, businesses can pull the data the need without the stresses of sorting through data waste, leading to quicker and more effective decisions for all marketing initiatives.
People don’t want to be just another consumer; they expect a personalized experience and connection with the brands they are purchasing from, leaving the age of generalized advertisements in the dust. It’s a proven fact that most general campaigns delivered to unfiltered audiences result in wasted ad spend, lower ROI, and lower or even negative response rates.
Fear not! These consequences can ultimately be prevented by creating personalized campaigns using the accurate data you’ve acquired. In order for data to be considered accurate, it must be consistent and correct. It’s important to consistently use rigorous quality checks to ensure the accuracy of data, analytics models, and outputs.
When there are inconsistencies, consumer data cannot be properly grouped or summarized. In that case, consumer behavior data could cause businesses to target the wrong audience with the wrong message. By also implementing waste management strategies, you can remove ineffective records from your databases for more accurate targeting efforts. And as a result, you just might find yourself saving even more marketing dollars, increasing ROI, and improving response rates.
The final step toward using data and analytics for campaign success is to ensure the proper action is taken with it. Actionable data refers to the process of analyzing the data you’re collecting, and implementing those insights into strategic designs. This means that the actions you take during the campaign will drive action in your customers’ behavior.
So, how do you know if your data is actionable?
Marketing tools like AI and machine learning algorithms can be used to gain further insights and optimize the customer experience. Once these smart tools are in place, actionable data strategies can influence everything: campaign design, messaging, distribution channels, and tracking the results.
The way we obtain data is shifting. As restrictions on third-party data start to take effect, marketers are utilizing different methods, like zero-party data, to supplement this loss of accessible data. But, by implementing the insights we learn from data analytics into our marketing strategies, we are putting consumer data and marketing dollars under a microscope, leaving no room for error, wasted efforts, or unnecessary spend.