In the current times, CMOs have multiple responsibilities to drive the growth of the organization in the right direction. With the arrival of the new technologies, the task is becoming easier for chief marketing officers, however they still need to see whether the combination of marketing and technology is generating the right business results. A data-driven approach helps them accurately have the macro-level and micro-level view for maximizing the company’s performance.
What is data-driven marketing?
The marketing approach that goes on the path shown by the data, is called data-driven marketing approach. It implements the insights from the data acquired from numerous customer interactions, with the customer representative team, sales team, marketing team and others. As seen in the above pictorial representation, it also helps re-evaluate and revisit the decisions that did not yield positive results in the past, and rework on that to reach the target.
The entire process thus enhances the customer experience resulting in the growth of the organization. It has proven to acquire new customers and retain existing customers.
With so many advantages of data-driven marketing, there are some interesting challenges:
81% of the marketers consider implementing data-driven marketing strategies a complex process.
That’s because, one needs to invest ample time and attention to understand the data insights, but that has not stopped 78% of organizations stating that data-driven marketing increases the conversion.
Check the below graph, where you see how competitive advantage can be gained through data-driven marketing strategy:
The amazing result from the process, as seen in the graph, is customer loyalty, an enormous challenge in today’s competitive world.
Some of the other challenges that a data-driven approach could resolve are having insights to implement the marketing strategy, integrating best personalization techniques, creating the right Martech stack, and promoting the storytelling marketing process. CMOs are expected to go the extra mile to derive the right insights from data, and implement the data-driven approach in the marketing campaign so that they can have an advantageous position in the market.
Let’s understand in detail, how CMOs with the help of data could drive better performance:
- In the better understanding of the customer: Data helps in the analysis of the consumer behavior, their preferences, likes, dislikes, so that the brand can develop the product suitable for the current market. Acknowledge this fact, the product is of high-quality, but if it does not meet the needs of the customer, then the customer would be least bothered to purchase the product. CMOs understand all these scenarios and analyze the relevant data that could extract more information about the customer to launch the right product into the market.
- Making the marketing approach the precise one: Every marketing practice has some shortcomings that need to be optimized. Data helps understand the shortcomings in the email campaign, branding strategy, and other promotional services. The 4th generation technologies such as AI could help focus on the precise data from the amassed collection of data, and make it easier for chief marketing officers.
- Improving the agility of the process: Organizations have to adapt faster to the changing marketing trends, practices, etc. otherwise, it would be challenging to sustain in the market.Data helps understand what trends are popular in the current market, which would be popular in the future, so that it can be used in the marketing plan. The chief marketing officers in leading organizations are realizing quick adaption to the latest trends, practices, and technology is the key to success, and are using data-driven insights to help them get absorbed into the current relevant process and achieve phenomenal success.
- Avoiding seeing through the prism: When you see through the prism, your decisions are affected as it is already predefined. You subconsciously tend to remove the crucial data that would have proven to make the right and un-tilted decision. A data-driven approach unblocks the crucial data needed to make unbiased decisions for the benefit of all.
- Evolved decision-making: The chief marketing officer of an organization has to get into the minute details for making the optimized decisions. They have to find the right answer to the unresolved complex questions that lead to any disastrous marketing campaign. They are accountable for anything that goes wrong in such cases. In this scenario, a data-driven decision helps in the continual evolvement of the process. The marketing officers could make the best decisions in the interest of the organization as a whole.
- Having the measurable goal: We all know that there should be a measurable goal for the effective decision making. This is to maintain the sanity of the process and align the decisions with the long-term requirements of the organization. Extracting the maximum benefit from the data is one of the crucial steps to help CMOs have a streamlined approach for maximizing the performance.
- Developing the high-level content marketing strategy: Every CMO is aware that one needs to have the right content marketing strategy at the place to achieve satisfactory business results. Insights from the data also help develop the right strategy for crafting the suitable content for any marketing campaign. A professional and relevant content marketing strategy can be developed with the assistance of CMO; in the later stages, they can pass on this knowledge to other marketing team members.
- Measuring what actually matters: With a huge collection of data, anybody can get lost in the sea of data. CMOs could scrutinize the best data that really matters for the organization. They know which data to dispose of and which to be used in the further process for the campaign. As CMOs need to project the best picture of the organization to the outside world, data could help in this process and drive them on the right path.
The CMOs have the rich experience and knowledge to understand each group of customers, but there are chances as a human being they could miss out on looking at other aspects and angles to a scenario that otherwise would have helped in a better decision-making process.
A data-driven marketing approach dissolves these boundaries, so that they can have a clear and 360-degree view of the entire process for making an effective and optimized decision. The above blog lists out how they can leverage the data-driven approach to maximize the performance.