August 9, 2017
For decades, long before data driven marketing became a concept, marketing relied on such technical concepts as educated guesses and gut instinct when it came to decision-making. Spreadsheets came along with Excel and similar software helping to improve decision-making and optimize spending. However, in recent years, analytical tools have improved.
Marketing personnel has been provided tools and concepts that have significantly improved forecasting and decision making. One of the most significant of these is data driven marketing.
What is Data Driven Marketing?
Insight and data are important aspects of business marketing. Data driven marketing relates to the use of the analysis of data about consumers – or data obtained from consumers. Such consumer data provides insights that can be used to make marketing decisions. There are fundamentally two types of such data:
• Primary Data: Obtained directly from consumers by asking questions or carrying out surveys, and
• Secondary Data: Obtained by analyzing consumer behavior, such as web browsing behavior, use of social media, internet search behavior and so on.
Surveys are easily set up using tools such as SurveyMonkey, Typeform and Google Forms. It is easy to collect data from large numbers of consumers in a short time. Apart from Google Forms, which is completely free, many of these tools offer a free version with a limited number of questions, and also offer an unlimited paid version.
Amazon Mechanical Turk can also be used to carry out surveys. For example, you can survey 1,000 people for anything from $100 to $1,000. You pay each responder to your survey – 10 cents or $1 or whatever you state. You can set up a survey on a hypothetical product presented with a number of different options: color options, stick shift, paddle shift or automatic, click or swipe, dimensions and other potential variants. The survey result can significantly assist you in designing and marketing your products.
Online Search Behavior Analysis in Marketing
Online search behavior is a useful parameter in data driven marketing. Analyzing what people are searching for in your niche can provide useful information. Google Trends can be used to find how many people use specific search terms or keywords over time. The data can be analyzed by country or region, and also by related topics or queries.
In Google Trends, the search term ‘big data’ is sub-sectioned in ‘data analytics,’ ‘big data analytics,’ Hadoop and so on. By applying Google Trends to your service or product, you can establish what data is important to you and what is not.
Their use of social media can also provide marketers with information about potential customer browsing habits. Is it worthwhile advertising on Facebook? Is Twitter worth the bother if you can get past Donald Trump? Would a YouTube video work? How about LinkedIn or social bookmarking sites such as Reddit, StumbleUpon and Delicious. Pinterest is another that many use. What data can you get from such social sites?
Function of Hadoop
Hadoop is analytical software that operates in the cloud. It is used by data scientists to carry out certain operations on ‘big data.’ Without becoming too technical, it is a complex method of analyzing big data in a parallelized way. If you have big data — a lot of data to process — you can parallelize that data by splitting it up between multiple processors. This speeds up the data processing task.
Apache Hadoop assists you in this. To put it very simply, it can help you speed up data-driven marketing by speeding up the processing of that data.
What is Big Data
A major issue with big data is that not many people know how to use it effectively. In fact, many have no idea what the term means. So what is ‘big data?’ Simply put, it is no more than large amounts of different types of data obtained from multiple sources. Such data can reveal patterns and trends that can be used in marketing. It can be structured and unstructured data: ordered such as in databases, or unordered such as in social media pages, videos, forum comments and e-mails.
It should be understood that no data is of use if it is not used correctly and profitably. Big data can be an amazing marketing resource if used correctly. If you have enough of the correct data, then you can use that to generate marketing processes that are both repeatable and scalable when applied to your business. This should involve less human intervention, leaving managers to focus on testing and improving their product.
Benefits of Data Collection and Analysis
For your data to be worthwhile collecting, it must be useful in meeting one or both of two different objectives. First, proactive information you can use to assess marketing opportunities:
• Provide information on how people access your niche.
• Give data on which social media sites are visited by your prospective customer base.
• What forums do they use (you can use this data to register and help solve problems.)
• Popular blogging sites in your niche.
• Keywords or search terms use by people to seek information about your niche.
You can use this data to:
• Make potential customers or clients aware of your business .
• Connect people to your product or service.
• Make people aware of your business and you personally.
• Generate brand equity.
• Generate revenue.
• Connect to any other critical objective.
These are just a few of the more important objectives of data collection. You can achieve a lot if you understand the concept of big data and data driven marketing. Insight and data relating to your market is extremely valuable — if you know how to use them. The second objective is to use big data effectively.
Effective Use of Big Data
It is one thing to know what it is, but quite another to know how to make effective use of big data. Marketing specialists Econsultancy carried out a survey on how marketers used data effectively. It found that 64 percent of those surveyed made business and marketing decisions based upon data driven marketing insight. However, while 77 percent of the marketers involved in the survey believe that digital analytics are important, fewer than 20 percent considered that digital reporting has a ‘very influential role’ in businesses decision-making.
It has been accepted by many companies that data driven marketing will be increasingly used this year, and will be the norm in 2018 onwards. Consumer behavior is critical in understanding the best marketing techniques. It will enable you to make decisions on the best content to deliver to them, and the best means of doing that: blogging, website, e-mail or mobile techniques.
Data Driven Marketing: Conclusion
For decades, long before data driven marketing became a concept, marketing organizations relied on educated guesses and gut instincts to make decisions, along with spreadsheets to determine performance and optimize spend. But in the last 10 years, the rise of advanced analytical tools has provided marketers with far better decision-making and forecasting capabilities: Data driven marketing! It allows you to be alert with the insight and data needed for success.
Sonal Patil is a research analyst at Market.Biz. She is keen to handle and use market data for developing marketing strategies. Apart from this she loves to travel and explore distinct places. Besides all this you will find me all time reading, Youtubing and learning new things.