Extra! Extra! Read all about it! Data-driven marketing, or the process of making decisions that arise from the analysis of data, is in the news (again). Let’s review the topic’s latest headlines from the likes of Forbes and Aberdeen. Data-driven organizations are:
- Three times more likely to have increased revenues
- Six times more likely to achieve competitive advantage and improve profitability
- Five times more likely to retain customers
In essence, the success of data-driven marketing comes from systematically extracting inferences from data sets to uncover trends and create opportunities that expand marketing effectiveness. True, it’s a buzzword, but it works (i.e. stronger campaigns and better insight into performance — results that matter!).
This buzzworthy strategy, however, comes with what many see as a major challenge: data (duh!). Why? Because data’s ever-changing, hard to manage and could result in critical errors. Just consider this stat: 40 percent of business objectives fail due to inaccurate data. Not good.
At the same time, we can’t do without data, so let’s not get so down on it. Think of it this way: data is the electricity that runs your house; it makes the TV work, keeps your food cold, lights up your rooms … it’s necessary.
The same goes for the data that’s a part of your marketing strategy. Although there are thousands of tools that can assist your strategy throughout the funnel, it all starts with data. People recognize this, so much so that 79 percent of marketers actually partner with a B2B vendor.
So, now that we’ve discussed the single most important part of data-driven marketing, let’s dive into its three key components and look into how each can work to electrify your marketing strategies.
1. Sales and marketing alignment for data-driven cooperation
According to a recent study by SiriusDecisions, B2B organizations with tightly aligned sales and marketing operations achieve 24% faster three-year revenue growth, and 27% faster three-year profit growth.