There is no denying that data-driven marketing is on track to become the next big thing in B2B. Well, that’s good, because it is incredibly efficient.
Don’t just take our word for it, though- listen to the data! The underlying principle of data-driven marketing is that your data should speak for itself – as long as you have tools and systems in place to listen to it.
Of course, deciding which tools and systems need to be in place takes a bit of work.
Therefore, before you start the process, you should familiarize yourself with some background information regarding the workings of AI data marketing techniques and understand why it generates the best results.
Why Is Data-Driven Marketing Important?
Preferences and needs drive human behavior. A company that understands and caters to these preferences has a much better chance of converting prospects into paying customers.
For example, a lawn-mowing company sends postcards seeking new customers to the entire metro region but receives less than 1% response.
Fewer than 5% will become new customers. Deciding that data could improve these results, the company studies the demographics and discovers a regional area where household income falls between 10% and 30% below the median income for the total metro area.
Using this data, they initiate another postcard campaign in that region that emphasizes low prices for lawn services and produces six times the number of new customers.
The second campaign used data-driven marketing to focus on what homeowners in the region found to be the most important and, thus, revealed better results.
Using such an approach can give companies a snapshot of the buying habits of their customers.
With this understanding, companies can tailor their sales and marketing strategies to their customers.
Data-driven marketing sources provide necessary personal information such as age, income level, marital status, number and age of children, birthdays, and other demographics that can be useful for marketing.
New Data Flowing into a not-so-new Theoretical Framework
Most decision-makers prefer to stick to what has been proved to work in the past when it comes to large-scale marketing or business theories. Or they’ve got time and resources to wait around for a new method to play out in the future. You probably won’t fall into that category!
Today, one of these well-respected marketing theories involves customer-centricity, in which organizations design their strategies to identify and create value for their best customers.
The basic idea has been around since the 1970s when marketers realized that their customers would not always buy a product or service only because it existed.
But customer-centricity isn’t new to us. What is different is that the volume of available consumer data has increased in the past few years.
The increase in data can be used to supercharge customer-centric marketing efforts- this is where the data marketing process comes in. Essentially, it is the combination of time-tested theory and newly available data, which is precisely what makes it so effective.
Now let’s take a closer look at each of the elements that make up data-driven marketing: data, driven, and marketing.
The data: consumer intent
A few years ago, B2B customers had to explore potential purchases with a salesperson hanging around, breathing down their backs. Today, they do it all online.
They read reviews, browse blog posts, attend webinars, and download whitepapers as they wind their digital way to eventual sales. All of this online activity generates intention data that signals a future purchase.
The existence of such intention data is, of course, what makes data-driven marketing possible. This degree of knowledge of prospective actions did not exist at any previous point in the marketing cycle.
Imagine, for example, what a huge benefit it would have for the 1990’s marketer to realize – every time – how much and how long a prospect has talked to the salesperson hired by the competitors.
Now you can draw on previously unknown advantages like this every day because instead of calling some salesperson to obtain information, prospects use a computer to find that information on the Internet (and leave a trail of data in the process).
The driving: making the data actionable
To capitalize on these advantages, however, all this intention data must be identified, curated, and made usable.
Marketers who get this process right will thrive as this powerful new form of Big Data continues to grow- these are the marketers that rush to open the doors when opportunity knocks!
The marketing: continuously improved customer-centricity
Once you have the right data, you can adjust your customer-centric strategies and structure your campaigns around it. The data offers insight into what works (and what doesn’t) for a specific client or customer base, enabling you to respond accordingly.
For example, if intention data indicates that one of your prospective companies is interested in a particular product of yours, you can prepare and deliver the mid-funnel differentiating content that you know will be most effective for that prospect.
The online activity around that content will signal whether it was valuable to the customer on the way to an eventual sale.
You can then change your marketing strategies based on the feedback, even after the initial purchase, as you aim to deepen the customer relationship.
Big Data is a global megatrend that is quickly taking over, making intent data the most useful new event for B2B marketers.
How you combine the two concepts for your business will play a crucial part in your success in the 21st century. Drive right!
How can you supercharge your analytics system to increase your acquisition?
Thirty-two percent of salespersons will spend more on data and research when given additional budget.
For so many reasons, modern marketers love data. Why?
- Data helps to transform businesses through customer acquisition and reintegration.
- It helps them achieve high ROI campaigns on Facebook and Google Ads.
- It helps them to compete with other marketing teams increasingly driven by data.
- It gives them a seat at the table of management.
The amount of data currently out there is more than it has ever been before. Startups and owners of shops in Silicon Valley have now developed tools that help them monitor data visualization. How can you leverage the data to boost your procurement? Let’s look at it more closely.
Understand your funnel knowledge to boost marketing efficiency campaigns
Is my ad creative? It’s my website, huh? Maybe it’s because of my sales team? You may never be able to uncover what is working unless you look at your business like a funnel.
So, what’s the funnel? It’s the process that your customer comes into contact with your business, and it looks like this:
That being said, every business is different, and every company has its own unique marketing enclosure that contributes to the success of its transformations.
CRMs like HubSpot let you visualize the funnels, which is incredibly helpful. They built this into their capabilities because marketers love funnels. Funnels help us understand where we need to optimize, double, and reduce our efforts.
Even if you don’t have HubSpot, it’s worth thinking about where your customers are coming from a funnel perspective.
- Where do they get involved with your product first?
- How does your business get back to them?
- And how does the first touchpoint conversion lead optimization to a sale in the end?
Consider, for example, a startup that sells food kits. They advertise in a variety of ways: they put out billboards, run podcast ads, do direct mail marketing, and they do more traditional digital marketing.
To understand where their customers are coming from, you need to start at the top of the funnel-the the first initial touchpoints. From there, you need to look at how that customer got involved with the business-did they go to the website? Call the salespeople? Did they get an email offer that convinced them to try a meal kit? Or has a particular Facebook Ad led directly to a conversion?
This path is what your funnel is supposed to show you. Just to be clear, your customer’s path can take multiple routes, but the funnel itself should capture and distill big ideas so that you can get a bigger picture of the customer’s journey.
Understanding the LTV customer to inform your channel mix
The best marketers know that not all channels and customers are equal. Clearly, customers who spend $1,000 are better off than those who spend $100.
Using analysis and data cuts, you should be able to start segmenting your customers by third parties. Sharing commonality among the highest value customers can help inform your channel mix.
Are your best users on the search?
Is it male or female?
How old are they now?
The list might go on.
Some keywords may even drive better customers in search companies. Just take a tax business like PicnicTax. My work with the client was very successful because we were able to dissect that more complex tax returns were more valuable quickly. In other words, someone searching for “K1 taxes” or “Investment property tax returns” yielded higher lifetime values than someone merely searching for “Online Accountant.” It allowed us to shift our acquisition mix more profitably to the customer.
Understanding all of this will allow you to choose marketing channels that work for people who offer the highest LTV for your business. It will make it easier for you to allocate your budget more efficiently and ultimately optimize the return on advertising spending.
Use data from one channel to inform the other
Your data is valuable, not just on one channel, but across channels.
For example, some digital marketing agencies use email marketing creative learning to understand the value proposition that drives the highest click-through rate. This data is translated, and agencies can use it to optimize Facebook and Google advertising.
Another great example is SEO: understanding your keyword conversion from Search Engine Marketing (SEM) can help improve your SEO strategy because your conversion to paid keywords is likely to translate into your organic keyword strategy.
These are some of the examples of the usefulness of cross-channel data comparison. However, when it comes down to it, the absolute best way to perform this channel comparison is by using data analytics software that puts all your marketing campaigns on the dashboard. A marketing dashboard will allow you to see all your data in one place to make cross-channel marketing decisions that much easier.
Use your data to drive PR
Precisely packing your company’s data can be a boon to PR. You can use sales data, customer surveys, and customer demographic data to create infographics and other fun, shareable assets for the press. Companies like Zumper have done an incredible job of using data to raise awareness and press awareness.
For example, say you had 1,000 new customers to buy your product last month. This is a huge feat, especially if you are launching a new consumer product or selling a larger investment product. Putting out a press release is a great way to harness that achievement and drive your acquisitions even further. Announcing how well your company is already doing is a sure-fire way to make others want to.
Marketing-based Predictive Account
Account-based marketing (ABM) means to know your market. Do you fully understand the accounts that you already have? Who are these guys? Why have they chosen your business? How old are they now? What are your most successful accounts? Use your data to paint a complete picture of your customers, so you know who you’ve already won.
Knowing information like this will allow you to strategize the next steps, whether it’s expanding to new types of accounts by experimenting with new messaging, or gaining a more significant market share for people who already seem to love you.
If you’re going with the latter option, you can use your customer information to create a few customer profiles that can outline the three or four original patterns that fit your customers. You can use this to identify other companies that do not use your service but that * do * fit the profile. This will improve your conversion and acquisition rates.
Tools that you should use
Great. Great. So, what tools can you use to do all this? Here are a few effective ones:
- Google Analytics: for the analysis of local data. Google Analytics is going to tell you the basics of what you need to know.
Where your traffic comes from, which ads are most active, that good stuff can be done with this tool. It’s a tremendous top-level way to understand which messages are appealing to your consumers.
- Heap Analytics, Mixpanel, or Amplitude: these tools are ideal for your customer’s more complex view.
Heap, Mixpanel, and Amplitude will allow you to perform enclosure analyzes and data slices, giving you a complete picture of your customers.
- The native data of your CRM or email platform: this is essential for understanding your customers. A CRM should aggregate all the data you need to understand your customers.
It is also worth considering the Customer Data Platform, which can help you further analyze your CRM data and create customer profiles.
The native data of your email platform also holds vital customer information. It is how they interact with you online, which is beneficial information to overload your acquisitions.
If you’re looking to improve your acquisitions, data is the only way forward. Understanding your customers, your successes, and your failures is an essential part of your company ‘s growth.
Let’s hope this article gives you a road map to move forward.
Mountainise Inc. is here to support you in these tough times. We are an innovative digital marketing agency that incorporates the new AI data-driven marketing techniques to achieve the most successful results from all aspects of your marketing strategy.
If you have any more questions or need assistance, feel free to contact us!