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Data-driven marketing - what is it and why does it generate results?

Data-driven marketing makes use of relevant data – obtained through various interactions and third-party sources, to gain better insight into the behaviors, preferences, and motivations of end customers. Data-driven marketing optimizes overall marketing performance.

Importance of Data-driven Marketing

Data is immensely valuable for marketers. Data holds the potential to become one of the most valuable resources in the field of marketing. Moreover, Big Data is derived directly out of customer interactions. This insight is capable of refining, enhancing, and improving any type of marketing strategy.

It is important to manage, store, and organize this type of information. Moreover, it is equally important to use the right tools as well as strategies to make the most of the available data.

Some reasons why data-driven marketing is important in today’s marketing scenario are:

#Reaching the Right People

There is an abundance of data that marketers can make use of, to build insights about every visitor to their e-commerce store or website. Reliable online marketing analytics tools are helpful in providing access to valuable firmographic and demographic information about the interactions and preferences of visitors to the website.

Data can help you in targeting and converting the ‘ideal’ customer.

#Seeing What Works and What Doesn’t

Data-driven marketing provides an unbiased and accurate assessment of the overall performance of your marketing campaigns, tactics, and strategies.

When you are aware of the specific areas of marketing that require improvement, you can save time as well as money. You will no longer end up wasting resources on marketing strategies yielding poor results. Conversely, you will become aware of specific areas of marketing with higher conversion rates.

#Focusing Where Your Customers Are

With advanced marketing analytics and automation tools, you can identify customer engagement and acquisition sources.

#Communicating the Value of Your Team

Data helps in communicating valuable information in a clear, powerful, and concise way.

Benefits of Data-driven Marketing for Generating Revenues

Here are some benefits of data-driven marketing, with respect to generating revenues:

#Consistent Messaging

Data can be utilized across multiple communication channels. When you make use of data, you can extend the overall reach through different communication channels. The delivery of customer insights helps in ensuring that the overall message remains aligned and consistent throughout.

#Highly Targeted and Personalized Campaigns

With data-driven marketing, you can create campaigns that are highly targeted. The campaigns also deliver unique and personalized messaging for every customer. Data offers you insight into every customer –including the respective online activities, interests, preferences, and lifestyle.

With the availability of this information, you can come up with relevant marketing content resonating with the customers while attracting their business. Data can also help in guiding the content marketing strategy while allowing you to know where and when to post marketing material and ads.

#Audience Segmentation

As a marketer, you should know that you should not send the same message or not make use of the same marketing strategies to every potential customer. They all tend to be at different stages of the shopping journey. Therefore, each one of them requires specific marketing messages as well as collateral for moving them forward. When you segment the behaviors, demographics, and habits of the prospects, you can easily organize them. This will help in personalizing your marketing efforts.

#Knowing the Customers Beforehand

With data-driven marketing, you can know the customers beforehand. Data can help in sending alerts beforehand about the respective preferences and interests of the end consumers. This allows you to target the customers with personalized messaging to get their ample attention while persuading them to continue business with your brand.

#Knowing What is Working and What is Not

Data-driven marketing can help you to come across specific content for leading prospects through the sales funnel. As such, you can easily determine exactly where your overall budget and time should be focused on.

#Improved Product Development

Data enables identifying and validating specific needs, desires, and challenges of your potential audience before you even launch the product. When you customize the features and value of the product solution to align with what customers are searching for, you can ensure improved product success.


Data-driven marketing is critical to the success of any marketing strategy.


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