What is Data-Driven Marketing and How Can it Impact Your Small Business?

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As consumer insight data continues to advance, small businesses and large corporations alike are depending on data driven marketing strategies. But what exactly is data-driven marketing and how can you utilize it to help grow your business?

A data-driven marketer puts more weight on established fact and collected data than on guesswork. Data-driven marketing is a strategy, a decision to make use of customer data to help determine where you put your marketing dollars and what marketing messages you send out. Digital marketing and advertising have made data-driven marketing possible on an unsurpassed scale.

Online marketing generates buyer data

Marketing off-line does not automatically feed-back to the marketer. When you run a “conventional” off-line marketing campaign, you have to make separate feedback tools like surveys or external questionnaires to reach out to samples of consumers to determine how they reacted to advertising, marketing campaigns, and to the products themselves.

On-line marketing however, means that data can be continuously collected to answer nearly all of a company’s marketing questions. The quality and applicability of consumer data that comes out of search engines, and potentially out of landing page websites themselves, are getting better every year, as are the techniques for making use of data that is available and the ability to manage it. Marketing technology and advertising technology (now called, mar-tech and ad-tech) now enable personalization of every aspect of the marketing experience.

Data-driven marketers avail themselves of automated consumer measurement

A marketer becomes a data-driven marketer by latching onto the data available either in an automated or semi-automated form online and looking for answers to questions such as who clicks, when do they click, where do they click, and what messages are the clickers getting. Then turning that data into marketing action. Data-driven marketing makes possible, for the first time in marketing history, a personalized approach to advertising. This approach, dubbed “people-first marketing” is the creation of advertising and promotions specifically designed for particular buyer profiles, where the match between buyer and advertising is determined by marketing data.

Creating messages stratified by data

Buyers who show specific buying habits and profiles are thus given unique, more relevant marketing and advertising presentations. No longer do advertisers and marketers just send out generic one-size-fits-all messages. Marketing has become a source of information. People are sent the information they ask for or information tailored to their preferences, which is objectively shown in their responses online. With the growing domination of inbound marketing, consumers are now empowered to control what marketing information they receive. Data-driven marketing involves the use of online technology to read what consumers want.

Marketers must produce the kind of content that consumers want and be able to present the right messages to the right people at the right time. Understanding who your specific audiences are and what their needs, wants, preferences, and pain points are, enables you to answer their individual buying questions at just the right time to generate a sale.

Stratifying your customers

  1. Google Analytics is a free system for website analytics, which tells you about how your website is working. If you add some standard tracking codes to each page of your website you can find out,
  • How users are finding your website.
  • Once they find it, how are they using it.
  • How effective is your website in attracting visitors?
  • How do users move about your website–what do they look at?

Google analytics will also attach cookies to the user’s media so you can recognize users who have been to your website more than once. Using special UTM codes, Google Analytics allows you to expand your understanding of your clients, what location they come from, and information about their links to you.

  1. Demographics surveys. Your website can include questionnaires to provide more detailed personal information like age, gender, education, employment, and the like. There are many software applications that include automatic tabulations to help you classify website visitors and find the ones who most contribute to your success

By learning how to attain this consumer information and subsequently modify your marketing strategies, you can enhance your small business’s marketing efforts to ensure you are reaching your target consumers effectively.

Swiftpage recommends Act! as the proven, trusted choice of entrepreneurs, sales teams, and small and mid-sized businesses, because it can be tailored to fit unique business and industry needs. Please contact us to learn more.


The SmallBizRising Blog is designed to be an educational content hub pulling information, best practices and practical advice for the small business owner and features topics including accountingmarketingtechnology and more.  Be sure to subscribe to stay up to date with new content as it is posted.  The blog was created by The Neat Company and receives contributed content from a group of contributing companies that provide technology, services and solutions to small businesses.

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