Data-driven marketing uses customer data to build marketing that increases engagement and conversions
Brands are taking a new approach in pairing content with an e-commerce component to continue to grow. In this strategy, you will start by using a cohort analysis, which includes the brand’s advertising data to study customer behaviors and trends over a period of time.
What is cohort analysis?
Cohort analysis is a powerful method of behavioral analytics that segments data from a broader data set, such as that of an e-commerce platform or online game. Instead of examining all users as a single entity, cohort analysis groups users into related clusters based on shared characteristics or experiences within a specific timeframe. This approach allows for a more granular and insightful examination of user behaviors, enabling businesses to understand patterns and trends that would otherwise be hidden in the aggregate data.
Building a data-driven marketing approach
Start with planning and documentation. Without it, marketers often rely on guesswork and assumptions. This leads to poor ROI, underperformance, and wasted resources.
Technology has made data collection and visualization easier. Now, decisions can be based on real customer insights. Businesses can craft marketing strategies that boost conversion rates and personalize experiences using actual data.
A data-driven mindset is essential. It requires a willingness to experiment and break free from the “this is how we do things” mentality. This shift is key to growth and seizing new opportunities.
Insights-driven organizations
Organizations prioritizing insights, such as e-commerce retailers like weBoost, have demonstrated the effectiveness of data-driven strategies. For example, weBoost achieved a 100% year-over-year increase in conversion rates by optimizing their site through continuous experimentation. This success underscores the importance of data-backed decision-making in driving business growth.
Key elements of a data-driven marketing campaign strategy
A successful data-driven marketing strategy incorporates several key elements:
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Zen Marketing Mindset: Establishing a clear order of operations is essential to making customer data actionable. Experimentation is vital, allowing marketers to test hypotheses and validate ideas based on real data.
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Infinity Optimization Process: This approach brings logic and structure to testing efforts, ensuring accurate experiment outcomes and validated marketing messages. It integrates the qualitative and quantitative aspects of marketing, providing a comprehensive view that balances intuition and data-driven insights.
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Exploration to Power Experimentation: Effective exploration involves gathering qualitative and quantitative data around frameworks like the LIFT Model. This model helps businesses understand customer needs and barriers to conversion, enabling them to build stronger emotional connections with their audience.
How to make data marketing work for you
Success stories like SpearmintLOVE highlight the impact of data-centric decision-making and customer obsession. By focusing on what its customers want and need, SpearmintLOVE doubled its revenue in just one year.
By depending on data to give customers what they want or need, SpearmintLOVE grew its revenue by 100% in just one year.
This story can be read in full detail with charts and graphs at the WiderFunnel blog by clicking this link: Leveraging data-driven marketing to gain a competitive advantage like retailer SpearmintLOVE
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