Unlocking the power of data for better marketing strategies
Take a look at some of these statistics:
- 74% of online consumers admit that they get frustrated with websites when content appears that has nothing to do with their interests.
- 78% of marketers say that data-driven marketing is embedded or strategic in the overall success of their marketing campaign
Consumer 360, integrated consumer insights, data driven marketing etc. have been buzzwords for quite some time now. Every company today across industry groups is looking at how data can be transformed into insights that can drive its marketing strategies across channels and assets. The journey to reach the zenith of data-driven marketing starts with a strong vision on what the company desires to achieve in terms of consumer engagement and delivering individualized experiences. This sets the stage to draw out consumer journeys and at which points in the consumer journey individualized experiences are to be delivered and how.
While the core of a data-driven marketing platform is the consumer data hub, it is important to start off with detailing the consumption use cases. Listing some of them below –
- Personalized targeting
- Cross Selling / Up Selling
- Cross Brand Data Sharing
Companies are trying to make every penny they spend on their marketing campaigns worth it. Be it email marketing, display ads, social media marketing or search engine marketing. To ensure that every marketing message is read, understood and acted upon by the consumer, it is important that the right content is sent to the right consumer at the right time and at the right location. It is impossible to achieve these without understanding the consumer genome. Data from every sphere and every touch point, ranging from Websites, Stores, Loyalty Programs, Campaign Interactions, Customer Care, Mobile App, Digital Ad Tech etc. has to be analyzed coherently to make the right interpretations that aid in making the right marketing decisions for personalized targeting. Therefore, consumer data is like raw diamond. It needs a lot of refinement, churning and analysis for it to shine and show its value to the business.
Let’s take for instance, Cadbury’s ran a personalized video campaign in Australia that matched a dairy milk flavor to the consumer’s interests and preferences and then generated a video using consumer generated content. This campaign recorded a 65% click-through rate and 34% conversion rate which proves that personalization works wonders.
For more examples on how data is being used by retailers for personalization you can read this.
Cross Selling / Up Selling
This involves encouraging consumers to spend more either by recommending products that satisfy additional or complimentary needs of the consumer or higher end products than the one currently being used. There is a huge scope for large organizations with multiple brands to generate additional revenue from cross sell / up sell. This is because of the wide spectrum of products they offer across brands across various consumer personas. The key here is to understand consumer purchase and engagement behavior across brands and map this to the consumer’s journey across touch points.
The airlines industry does a very good job at cross selling & up selling products to consumers. From up selling baggage limits and more leg room, to cross selling car hire and hotel rooms, airlines have earned a fortune by selling ancillary products. In 2018 alone, total ancillary revenue in the airline industry worldwide has hit $93 billion.
Cross Brand Data Sharing
Today brands are spending a lot of money in acquiring prospect data such names and other details from third party data vendors. In many large organizations that have multiple brands operating in silo, brands tend to pay for the same data set individually, which doubles the expenditure at the organization level multi-fold. To avoid this, a central consumer data hub which can identify a consumer as one individual across brands and divisions, with all his / her profile details and interactions mastered at the organization level is needed. This also sets the stage for cross brand consumer journey mapping which would make way for personalized targeting, cross selling & up selling
For a data driven marketing strategy to succeed, a strong vision backed by organizational alignment across all the stakeholders – Business, IT, External Partners and a robust implementation strategy are the stepping stones. Having a clear focus and clarity on the consumption use cases and the business problems / pain points that the company wants to address through the data driven marketing strategy is the key.
Mindtree has developed a platform called "Decision Moments" which enables all of this right from integrating with multiple data sources, configuring rules for data quality checks, data normalization as well as statistical models to derive insights from data. These insights are rendered through very interactive and powerful visualizations for business users to consume and formulate better marketing strategies.