Being this far in the pandemic stage, we can assure you that precision is key. Marketers are rethinking their data and tech strategies, and that’s where data-driven marketing will play a big part!
Precision marketing following Covid-19
With all the shifts that companies experienced during the beginning of the pandemic, they could achieve something that never happened before. The retail sector experienced years of growth in digital penetration in a matter of months.
The problem?! Marketers weren’t able to capture all these sudden shifts because of outdated data modeling.
In Digital Affair, we want to value the importance of better understanding of customers using data, instead of opting for mass communications and promotions.
By collecting different data we can conclude that precision marketing can make a difference. It can drive significant customer acquisition during periods of convulsive change.
However, for a company to compete at the highest level, it requires algorithms that can keep up with the most varied types of data, to both keep pace with changing needs and expectations as well as anticipate shifts in customer behavior.
How precise should it be?
From users’ behavior, marketers must be able to interpret and analyze the way they navigate and take advantage of it.
An algorithm might learn, for instance, that customers who make more than two visits to a store’s website within a two-week period are 30 percent more likely to make a purchase. Such indicators can trigger tailored offers to convert browsers into buyers, allowing marketers to direct their acquisition efforts and spend toward the most profitable segments.The big reset: Data-driven marketing in the next normal
What is also crucial to understand, is the role of covid-19 in all this! User behavior has changed.
Externalities that once seemed incidental, such as customer mobility, are now of paramount importance.
What’s the issue?
Marketers need continually refreshed data from a variety of sources, they need detail and attention to detail!
Many companies still tend to rely on their intern customer data, when their modeling tools are not optimized to deal with large volumes of data.
Budget cuts are not healthy for marketers you know? There’s a large portion of people complaining about it, and sometimes they are right!
Also, the large-scale shift to remote working doesn’t help.
A Chief Marketing Officer from Fortune100 reports that while working from home, his team can’t react as quickly as it happened previously.
Let’s fix this!
Precision marketing can be good if it has good data supporting it.
To improve it, you should bring together not only behavioral trends and location-based insights, but also third-party analytics about your business, customers, and competitors to supplement your insights.
Companies that extend their data collection in this way can identify demand increases and where new customers are coming from.
Solid data can also allow companies to generate better insights into competitors.
By comparing third-party assortment, sales, and promotional data with their own numbers, for example, marketers can assess the strength of different value propositions and see which elements resonate with different customer groups.
They can provide these groups with personalized messages, content, and offers.
We hope we have aroused your curiosity and answered any existing questions about data-driven marketing!
Read more: The big reset: Data-driven marketing in the next normal