Shifting The Way We Think About Data-Driven Marketing

There are a variety of ways that data-driven insights can benefit a business' growth and evolution. One of the trickier areas is when it comes to data-driven marketing. It's tricky because there is SO MUCH marketing and behavioral data available that sometimes we overcomplicate the process. In our quest to develop agile, targeted, and personalized marketing content, it's easy to lose sight of the fact that it's not about having more data - it's having the right data.

THE SITUATION:

87% of marketers say data is their company’s most under-utilized asset.

AND

81% of marketers consider implementing data-driven marketing strategies somewhat to extremely complicated.

THE OPPORTUNITY:

There’s little-to-no debate about the value of making data-driven marketing decisions. From increased leads and conversions to stronger engagement and favorability, a quick Google search will show countless success stories. But, as seen in The Situation, being a data-driven marketer is easier said than done.

For businesses not yet realizing their data’s full potential, I’ve seen two common barriers standing in the way: complexity and cost.?

You’ve likely read articles on data-driven marketing that talk about algorithms, predictive analytics, attribution modeling, and other advanced methodologies. These terms are enough to make any marketing professional’s head spin, let alone convince a key stakeholder who is already satisfied with taking a gut-instinct approach. On top of that, there are the recommended tech stacks, analytical tools, and business intelligence platforms – which can get very expensive, very quickly. With the current economic uncertainty, it can be tough to justify those investments.?

All things considered, it makes sense why a company’s data is an under-utilized asset. It can be expensive and complicated, so I understand the appeal of a “keep doing what we’re doing” approach.

Before going that route, however, it’s worth taking a moment to look at things from a different angle. The essence of data-driven marketing is simply leveraging data to guide marketing decisions, right? So, while tech stacks and predictive analytics are certainly valuable pieces to the puzzle, they aren’t the only pieces. If you make one decision based on one data set… boom. You’re a data-driven marketer.?

With that, The Opportunity I see here is leaning into identifying the right data rather than leaning away from data as a whole. It’s about slowing down and simplifying the approach for a gradually building and sustainable data-driven marketing strategy. By trimming away the clutter and remembering that sometimes less is more, you can maximize the efficiency and impact of your data-driven efforts.?

THE CHALLENGE:

Having pointed to *simplifying your data-driven approach* as part of The Opportunity, it’s only fair to start this section by acknowledging that simple does not mean easy. As Steve Jobs said, “Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple.” This highlights a big part of The Challenge; shifting the way we think about data-driven marketing.

When you hear “data-driven marketing,” what comes to mind? For me, it’s marketing metrics and KPIs. My mind jumps to spreadsheets and dashboards filled with data from social media, websites, digital campaigns, sales tracking, and a number of other sources. It’s likely that many of you are in the same boat because these are standard components of data-driven marketing.?

These common thoughts lead to what I believe is one of the biggest challenges of data-driven marketing; there’s too much data available. Don’t get me wrong – access to information is a good thing and we are fortunate to live in a time when we have basically unlimited access. But as a result, it seems our understanding of data-driven marketing is more complex and daunting than it needs to be. With so much interesting information around us, it can be hard to simplify our approach without feeling like we’re leaving valuable insights on the table.

The thing is, it’s not always about high-volumes, multiple sources, and groundbreaking methodologies. Most times, it’s identifying the right types of data that matter most based on our specific goals and objectives. Then, it's knowing where to look and having a plan for what to do when we find it.?

THE SOLUTION:

A common approach to data-driven marketing is gathering mass amounts of data from different sources, and then trying to synthesize, analyze, and uncover actionable insights from there.?

But this is making things a lot more complicated than they need to be. Rather than searching for the needle in a haystack of high-volume data, try taking the reverse approach. Start with your desired outcomes and work backwards through the steps needed to get there. You’ll still be tapping into the vast array of data available; you're just doing so with more strategic and tactful methods.?

Here’s a data-driven process that has proven successful for us and our clients:

1) Clarify your objectives.

The true power of data-driven insights is how they guide decision making and action. So, clarify your marketing goals and objectives; both short and long-term. Get as detailed as possible with the desired outcomes, the steps needed to achieve each goal, and the types of data?needed to guide decisions along the way. This is the first step to maximizing the impact of data because it ensures that data has a clear purpose.

You also might be surprised to find that there’s misalignment internally or disjointed understandings of the broader marketing goals. This step helps address those matters before moving forward.

2) Data inventory assessment and identify data gaps.

Having clarified your goals and objectives, you can address each of them to identify the specific types of data that will apply to each specific goal. Chances are, you already have a lot of actionable data at your fingertips. They’re just buried within high-volume data that isn’t relevant to what you’re looking to accomplish – which helps explain why 87% of marketers feel data is their most under-utilized asset.

So, itemize the types of data you currently have and match them up against your goals and objectives. If certain data types aren’t applicable to your goals, set them aside for the time being so you can focus on what is applicable. This process will not only highlight the most valuable data you’re currently gathering, but it will also uncover data gaps and missing pieces of information. Now you'll have a framework to guide data collection that matches your marketing strategy development needs.

3) Fill the insights gaps.

Having established the specific types of data you need based on your specific goals, launch targeted initiatives to capture that information. This is a great time to develop a holistic Insights Strategy to ensure the new data you collect has a specific purpose and actionable intent. The last thing we want at this point is to revert to the overload of data that causes more clutter and confusion.

This process is ideal for anyone feeling overwhelmed by the data they currently have because it cuts through the noise without losing the value of past investments. It also benefits those who are ready to expand their data-driven marketing strategies by providing a consistent framework for ongoing growth.??

MY ADVICE:

In the world of data-driven marketing, it’s easy to overlook the importance and value of customer feedback. There’s so much emphasis placed on performance metrics and passive data tracking that we can lose sight of the unique individuals creating that data.?

If lead acquisition or conversion rates are down, it could be due to misalignment with the tone and verbiage used in marketing content. If customer retention or defection numbers suddenly change, it could have more to do with lifestyle changes or social trends than product or service features.?

These underlying behavioral drivers are missing from standard marketing metrics and can only be captured by connecting directly with your customers. Incorporating feedback into your data-driven marketing strategies will add much needed layers of context and depth when analyzing and interpreting what the numbers mean. On top of that, as you look to fill data gaps, gathering customer feedback allows you to target specific audiences and ask specific questions related to your data needs. Rather than complex analytics, customers will simply be telling you what you want to know.??

YOUR TURN

I’d love to see your comments and thoughts about data-driven marketing. Do you have any tips or suggestions for someone just getting started? Are there any memorable success stories or lessons learned? How have your perceptions of “big data” and its use in marketing changed over the years???

By sharing your thoughts, ideas, and suggestions, we’ll foster a collaborative community where actionable insights are the foundation and collective success is the outcome.

Do you have a stat, fact, or trend you’d like me to write about? Send me a message or share it in the comments. I’ll add it to my list of future newsletter topics!

DATA SOURCES:

(Source1: Invespcro, 2020)?

(Source2: Campaign Monitor, 2021)