The importance of utilizing data in marketing
We at Marketing Clinic believe that data should be the foundation for all marketing efforts today. Despite data-driven marketing being a hot topic for fairly a long time already, we still see a lot of companies that haven’t yet started gathering and utilizing data in marketing to the extent they could and should do. That is why we have suggested some basic marketing data use cases that all the companies should be aware of, in this blog post, including:
One of the most important and first use cases for data in marketing is to know your customer. Customer profiling or customer segmentation will provide a good way to use the available customer data to gain results and better customer understanding. Customer profiling or segmentation can be, for example, value based RFM segmentation or need or interest based segmentation, depending on the purpose of the segmentation and the data available. You can also do segmentation on different levels, on strategic and on very tactical level, using different data and they can be also done simultaneously. While successfully done customer profiling or segmentation can lead to both increased sales and brand image through improved targeting and content efforts.
Another important marketing or sales challenge that a company can solve with data is how the different customers are behaving with pricing. Some may be more prone to buy an item discounted price and some may be willing to always pay a premium. With customer purchase and behaviour data modeling with regression analysis, for example, pricing can be optimized for each customer individually. While done successfully, it leads to not only increased sales and conversion rates but also better profit margins.
One of the very important use cases in marketing to utilize data, as well, is recommendation engines to predict what kind of products your customers might be interested in. You can use, for example, a clustering algorithm to group people that have similar interests together and propose those products that similar people to your customer have bought. Good recommendation engines will add your sales but will also add customer satisfaction as customers are happy to have been proposed with products and content they like.
Predictive churn modeling is also a very useful marketing data use case to mention. It helps to identify clients that might be leaving the company’s clientship or changing the service provider. From the customer behaviour data, you can find the type of actions taken or other similarities in behaviour among those people who then later left the clientship, and this allows you to use those similarities to predict the behaviour of the current customers. Businesswise, the benefits are clear: you can have increased sales while not losing customers and increased customer loyalty from getting the customers to stay on the moment of hesitation.
Social media strategy is also something that can and should very much be planned around data. You can take all the different elements from social media to analyze for the best possible ROI with regression analysis, such as channel, time of posting, day of posting, content type, ad type etc. The benefits of this use case are self-explanatory: maximizing the return on your social media marketing investments.
Last but not least, one more useful and interesting data use case in marketing is sentiment analysis. With this type of text analytics you can analyze the tone that the customers are using while discussing in your channels (or other channels) about you. This will help you to understand and manage your company’s brand image better.
To conclude this post, these were only some examples of how a company can utilize data in their marketing efforts, but there are countless other ways to go for. The important thing is to get started and to understand what kind of development you could do with the data you have now, and with the data you can acquire in the future, to reach your business goals.
Don’t hesitate to reach out to us to find out more, and we will help you to get the maximum impact out of your data here at Marketing Clinic!