Running a startup can be an intensive practice, especially for first-time executives. It can be challenging to keep the firm afloat while reaching out to as many people as possible. Nonetheless, focusing on data-driven marketing practices can increase reach while lowering your costs.
In a little while, you will pick up on what data-driven marketing is about and the best practices in the field. Learning them will put your startup on a pedestal for success. So, let’s explore them in more detail.
What Data-driven Marketing Entails
Making decisions for your marketing team can feel like trying your luck at live dealer games and facing more experienced businesses. Yet, data-driven decisions can help you narrow your marketing strategies to the most effective ones, removing uncertainty out of your business operations.
You may have heard of email outreach campaigns, social media ad targeting, and search engine ranking. All these aspects sum up e-marketing, which refers to the digital version of traditional marketing methods. The ability to generate data effortlessly gives e-marketing significant edge over traditional marketing, which still relies on outdated modes of data processing.
Data-driven marketing begins with collecting and analyzing consumer data using different analytics tools. Some statistics tools are easy to learn, while others require more expertise – either way, they help make sense of consumer behavior.
Once you understand the consumer behavior of your target customer, you can channel your resources toward the most effective advertisements. That also involves creating more personalized and creative awareness about your startup. Without data, it would be impossible to get accurate feedback on what the consumer behavior your audience entails.
The 5 Top Data-driven Marketing Practices for Startups
Here are the best data-driven practices for your marketing team:
Create Personalized Ads
Personalized advertising is only possible by knowing your customers’ behaviors. Once you have data on their preferences, you can create a more targeted ad that resonates with theirs. Yet, while this may sound simple, it involves heavy analytics.
Big data is a massive industry, with projections to reach $655 billion in 2029. Companies gather as much customer data as possible to personalize the marketing experience. You, too, can do that for your startup by gathering what your customers opt for.
Startups can do that by tracking how customers use their platform, their preferred searches, and their reactions. By incorporating this functionality into your platform, you can get enough data to push out personalized ads. You can also leverage data from technology giants like Google for this endeavor.
Target Marketing Through Ideal Customer Profiles
With reliable and in-depth data, you can generate an accurate picture of your ideal customer. It will be counterintuitive to market your products to random people when you can channel them to the best prospects. However, doing this involves slicing through large chunks of digital customer data.
Predictive analytics identifies patterns in a data set. Of course, you must have a way of collecting this data from your customers and prospects. Once received, you can sieve out those most likely to be receptive to your advertisements.
An ideal customer profile helps in creating a sales funnel. You can focus on converting the few that match this profile instead of spreading them too thin.
Maintaining coordination between different channels was challenging until the advent of big data. A multi-channel marketing approach allows you to streamline your ads across various channels. It could be social media- or web-based.
This coordination considers each customer’s characteristics, technology impressions, and interests. For example, the target audience of your marketing efforts might binge-search for email marketing and then receive offers on their Instagram and Facebook accounts. They can also get recommendations from the Binge news feed.
Multi-channel marketing is one way to drive your advertising efforts with data. It can be persuasive yet subtle enough for engagement.
Data allows us to see how much we spend on marketing campaigns and how many leads we get. By tracking the conversion rates, we can channel more money to the ads that convert the most. Hence, tracking expenses is one of the best marketing practices for startups.
You must collect your data in real-time to track spending and return on investment (ROI). Some solutions, like affiliate software or custom marketing apps allow tracking these on the fly. Getting real-time updates gives you the best insights into your expenses, and only then, you can identify the ads that yield the most on your investment and cut spending on the less-converting ones.
Email Campaigns through Data Onboarding
Data onboarding entails transferring all data collected offline to your digital platform. That includes telephone numbers, addresses, in-store purchases, and, most importantly, emails. With this information, you can reach those who do not use your digital channels.
Email campaigns can be the most effective for your offline customers. Since you cannot track their behavior on your digital platform, reaching them through email works seamlessly. It is one of the oldest forms of advertising, but it remains one of the most effective.
Data-driven marketing can help your startup focus on what works and disregard what doesn’t. It involves gathering customer data, including their emails, purchase behavior, technology footprint, etc. Once obtained, you can analyze them and understand your customers better.
Adopting this strategy has many benefits. First, you will focus on what works. Next, you can cut spending on marketing campaigns that are not converting as effectively.