With the widespread of marketing platforms and social media apps, it is no secret that the e-commerce world has gone through a major paradigm shift in recent years.
Today, businesses have become more customer-focused and are constantly aiming to improve consumer experience as well as increase customer engagement. In light of this, data has become the ‘Holy Grail’ when it comes to marketing strategy.
Online marketing is taking the e-commerce world by storm and one of the major advantages is the ability to track things. Thanks to the wide array of online tools, businesses can now gather, measure, and analyse every single data point to optimise their campaigns and maximise results. An IDC report reveals that Australian business is investing largely in data-driven marketing, with the forecast showing that businesses spent as much as $2.7 billion on building analytics capabilities in 2018.
With this in mind, it’s important for marketers to have a strong data-driven marketing strategy in place in order to enhance and personalise the customer experience. Far from being a fad, data-driven marketing has become a must-have for marketing success. Here are three key strategies to help marketers leverage data-driven marketing and maximise revenue.
- Build a great conversion optimisation strategy
One of the important metrics for any marketing strategy is the conversion rate. While data impacts most of the business decision, a fragmented approach will highly influence the effectiveness of the marketing strategy. With an enormous amount of data available when accompanied by an underlying strategy, it becomes a business superpower and provides clarity on mining relevant information.
A conversion optimisation strategy allows marketers to systematically consider consumers’ experience friction points along the purchase journey and ensure the data is considered holistically. In doing so, businesses have better visibility on which data and metrics are necessary to focus on, ultimately maximising their returns on investment (ROI) by gaining in-depth insights.
- Collect, analyse and interpret data
Customer behaviour and engagement tracking are crucial and businesses need to ensure that the conversion optimisation strategy is effective by validating assumptions with real data. Comprehensive, unified analytics are ideal to keep track of performances and, with this, businesses can leverage multivariate testing to develop and strengthen their approaches.
Integrating effective tools and solutions that help analyse consumer behaviour and engagement provide an ideal platform to improve the data-driven journey. Identifying and differentiating consumers on their purchasing behaviour will help business segment and develop real-life personas. This would support in constructing relevant campaigns for a specific consumer base instead of spraying consumers with irrelevant content.
- Personalise, personalise, personalise
While data-driven marketing is great for lead-generation campaigns, businesses should also consider the opportunity to use data to improve the experience for existing customers. Much like the warmth of great customer experience at a physical store, businesses can personalise their marketing for a more individualistic journey. More basic information such as their name, age, and location can be embedded into interactions to provide a special touch to ensure customers feel valued.
Utilising historical data collected from customers’ purchase history will aid in eliminating some guesswork to address an individual customer’s needs. Did they purchase a product recently? Consider showing products or accessories they can use in conjunction with the purchase. Have they been missing for six months? Discounts and win-back offers can be effective in restoring a relationship. Customers need to feel listened to and excess choice has often prevented consumers from being decisive in their purchasing decisions.
According to a recent Econsultancy survey, marketers think that data-driven marketing is the ‘single most’ exciting opportunity in 2019. Data-driven marketing makes it easier for customers to choose and, as a result, not only do customers become more confident in their shopping habits, but also compelled to believe the business complements their behaviour and indulges their interests. Data-driven marketing can make a vital difference in how consumers may view and interact with the brand.