Brands are taking this approach in pairing content with an e-commerce component in order to continue to grow. In this strategy you will start by using a cohort analysis which includes the brand’s advertising data in order to study customer behaviors and trends over a period of time.
What is a cohort analysis?
Cohort analysis is a set of behavioral analytics that takes the data from a given data set e.g. an e-commerce platform or online game, rather than looking at all users as one. It breaks them into related groups that usually share common characteristics or experiences within a specified time for the purpose of analysis.
Building a data driven marketing approach
The first step should be planning and documentation although, many marketers tend to skip this step. As a result of this, marketers end up making decisions based on guesswork, estimations and assumptions rather than real data which leads to poor ROI, underperformance and waste of resources.
Technology that made it easier to collect and visualize data because you can make decisions and create a data driven marketing approach based on real customer data. You can also generate customer insights that lead to increased conversion rates.
It takes a willingness to experiment new things and a break from the ‘this is how we do things’ mentality that often prevents growth and limits opportunities.
Insights-driven organizations such as e-commerce retailer known as weBoost, for example, who saw a 100% rise in year-over-year conversion rate by optimizing their site through experimentation.
Key elements of a data driven marketing Campaign Strategy
- A strategy that promotes the Zen Marketing Mindset
Order of operations can be difficult when you need to make your customer data actionable. However, with experimentation, you can easily feed the data into hypotheses and validate whether or not your ideas will work.
A recommended approach is the Infinity Optimization process which helps add logic to testing efforts which means accurate experiment outcomes and validated marketing messages.
This approach is highly effective because it covers the main parts of marketing which include the qualitative, intuitive, exploratory, potential insights, quantitative, data-driven, logical and the validating side.
- Exploration to power experimentation
Exploration in this context is the information gathering and data collection. For this to be effective, it’s important to consider both qualitative and quantitative data.
In this process, all information collected is centered around the LIFT Model, which is a framework for understanding your customers’ needs and barriers to conversion.
NOTE: Illustrative data and a structured approach helps businesses to get a deeper understanding of what customers want or need and build stronger emotional connections with customers.
How to make data marketing work for you
When we look at brands like SpearmintLOVE, who are seeing successful, we see customer obsession and data-centric decision-making as the common themes of what is happening behind the scenes.
By depending on data to give customers what they want or need, SpearmintLOVE was able to grow 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 click this link: Leveraging data driven marketing to gain a competitive advantage like retailer SpearmintLOVE