Companies that leverage data-driven insights can achieve as much as a 41% increase in marketing ROI.
Source: McKinsey
In today’s digital landscape, capturing and leveraging the right data can be a powerful tool for any marketer.
By understanding the types of data that are most valuable and can be used to inform marketing decisions, marketers can create more effective campaigns and better target their audience.
Best practice 1: Start with WHY
A challenge we often hear is:
”We’re capturing so much data but we’re not making good use of it.’’
That’s why you must have a specific objective in mind if you want to measure what success means for your customer data.
💡Or in other words, ask yourself these questions:
1. What data do we need to start making a meaningful improvement on X?
2. What are the moments that matter in our customer journey and what data are we going to need to enhance our customer experience?
Best practice 2: Use progressive profiling
Progressive profiling is a marketing strategy that focuses on collecting data from customers over time in order to better understand their needs and interests.
And most modern marketing technology tools offer this option.
This data can then be used to create more targeted campaigns and offers that are tailored to the customer’s preferences.
An example of progressive profiling would be asking a customer to provide additional information about themselves, such as their age, location, favorite hobbies, or spending habits, when they first make a purchase or each time they visit your website.
💡By collecting this data over time, marketers can build a more detailed profile of their customers and create more personalized campaigns and offers that are tailored to their interests.
Best practice 3: Avoid data hoarding
Data-hoarding is like an enthusiastic squirrel collecting and storing nuts.
Companies and organizations frantically collect data like a squirrel gathering nuts for their winter stash.
And the more data they collect, the more they can use and analyze it in the future.
No but seriously…
Data-hoarding is the practice of collecting and storing large amounts of data with no clear purpose.
Marketers should avoid data-hoarding because it can be a huge waste of time and resources. Not only that, but data-hoarding can lead to data privacy issues and compliance risks.
💡It’s best for marketers to ensure that their data collection is purposeful and focused on specific goals.
Keep this in mind to avoid overaccumulating data:
- Determine the purpose of data collection, who the data is being collected from, and what the data will be used for.
- Ensure that any data collected is handled in accordance with applicable laws and regulations.
- Regularly review data collection practices to weed out unnecessary data.
6 types of data marketers should capture first:
1. Demographics and psychographics
Demographics provide basic information about a target audience, such as age, gender, income level, and location.
Meanwhile, psychographics include information such as interests, values, beliefs, and lifestyle. By understanding both demographics and psychographics, marketers can create more effective campaigns and better target their audience.
Psychographics is the most important piece of information you can have on a customer because it will help guide your nurturing strategy.
💡How do they view the world? What does the world look like from their perspective?
2. Customer behavior
Customer behavior data can provide valuable insights into how customers interact with a brand, from what products they’re most interested in, to what type of content resonates with them.
By understanding customer behavior, marketers can create campaigns that are more likely to succeed.
3. Social media data
Social media data can be used to better understand audience interests, engagement, and sentiment.
By leveraging social media data, marketers can create content that resonates with their audiences and tailor their campaigns accordingly.
4. Search engine data
Search engine data can provide valuable insights into what customers are searching for, including the keywords and phrases they’re using to find content.
By understanding search engine data, marketers can create campaigns that are more likely to be seen by their target audience.
5. Industry trends
Industry trends data can provide valuable insights into where the market is headed, who the key players are, and what’s likely to come next.
This helps marketers create though-leadership content.
6. Competitor data
By understanding competitor data, marketers can get a better understanding of their competition, including what’s working for them and what’s not.
PS. If you wish to turn your data into revenue, contact our data experts today.
Our promise: you’ll become the marketing hero in your company!