Many studies have already proven that companies who base their decisions on figures and analyses are more successful. Systematic evaluations help them to better understand their customers and answer their needs more quickly.
Data analysis has become increasingly important in marketing, but it also poses one of the greatest challenges. Why is it so profitable for marketers to collect and evaluate data and how can these figures be translated into valuable insights for marketing strategies?
THIS IS WHY COLLECTING DATA IN MARKETING IS IMPORTANT
Marketing has changed dramatically in recent years: It no longer uses mass communication to address wider segments of buyers, but focuses on the individual customer. To understand them and their needs is the basis for advertisers to decide on their channels and paths to communicate with consumers. The more precise the evaluation of customers and their behaviors is, the more positive are the returns, i.e. answer rates, sales or revenue.
Exact segmentation of customers and their needs only works if there is respective data that can be evaluated. Targeted address is only possible with sufficient information because advertisers can see which advertising measures are effective and which ones aren’t. If this is successful, they can plan better long-term marketing campaigns and improve the ROI.
DATA MUST BE EASY TO UNDERSTAND
Never before did we have such a vast range of valuable information about customers and markets. While it’s a chance for marketers, they also face the challenge of having to pick out high-quality data from masses of useless information.
In order to do so, it’s not enough to know the key figures and what they measure – figures and data also need to be put into the right context: How does data change over the course of a week, a month or a year? Are there correlations between certain marketing measures and campaigns? Do current trends influence website visits? Did the website experience technical issues? These are only some of the questions that need to be answered when evaluating customer data.
By looking at the bigger picture, advertisers get a clearer perspective of which measures can influence factors such as conversions or company growth. These insights from Big Data analysis also help to make better decisions, allocate purchase decisions to the right channels (in the context of marketing attribution), and optimize future campaigns.
USING INSIGHTS TO DEVELOPING A MARKETING STRATEGY
Many companies use their existing data potential only to support already made decisions instead of trying out new measures. This may be good to justify decisions, but it sure doesn’t help to fully benefit from the potential of data analysis.
The insights of an analysis should be the foundation of any marketing strategy. The decision-making and planning process need to be based on the data and insights that can be drawn from it. Otherwise, it is impossible to optimize marketing activities in the long run.
In marketing, data has become an extremely valuable resource. It provides advertisers with important information about customers and their behavioral patterns, so they can target their marketing strategy in the best possible way. The trend toward a more customer-oriented marketing approach is proof.
Raw data alone, however, is not enough: Building a targeted marketing strategy is only possible with informative data and the ability to interpret it correctly. Effectively collecting and analyzing data takes time, tests and suitable tools to get the right insights.