The field of marketing has become one of the most rapidly evolving sectors in recent times, and a new term has emerged known as Data-driven marketing. This type of marketing heavily relies on collecting comprehensive data about customers. This data provides large companies with a broad range of options to understand the needs of their target audience. Consequently, it becomes easier to meet these needs and directly reach the intended audience. This approach differs from traditional marketing in several ways:

The Main Concept of Marketing

When comparing traditional marketing with Data-driven marketing, we can observe the main difference between them in terms of definitions and assumptions.

Traditional marketing focuses on understanding customer desires and then converting those desires into something customers want to buy. However, practically, this type of marketing relies on:

• A deep understanding of the target audience.
• Anticipating the needs and desires of the target audience.

The next step involves creating and designing marketing strategies for products or services. However, determining the best customer-oriented marketing strategy can be challenging, as assumptions may lead to errors multiple times when trying to reach the target audience.

In the case of Data-driven marketing, the foundations are different. It enables marketers to reach and communicate directly with customers. Moreover, marketers use customer insights and expectations to:

• Target the audience more precisely.
• Attract new customers.
• Continuously and promptly improve marketing strategies with customers.
• Make decisions faster and more efficiently.

Benefits of Data-Driven Marketing

After outlining the significant differences between traditional and Data-driven marketing, let’s explore its benefits for marketers. According to two-thirds of marketing pioneers, Data-driven marketing decisions surpass traditional and instinctive methods in building strategies.

1. Provides a Clearer Picture of the Target Audience

With the accurate analysis of the collected data by marketers, it becomes easier to predict the behaviors and preferences of the target audience, making it easier to direct specific marketing messages at the right time.

2. Builds Stronger Relationships with Customers

Once data is collected, it becomes easier for the marketing team to establish strong relationships with both the target and potential audiences. Studies indicate that “the large data sets collected from all platforms about customers make it easier to provide personalized experiences.” Additionally, this data helps marketers make adjustments to better suit customers.

3. Identifies the Best Marketing Channels

Data gives companies the advantage of discovering the ideal channels to promote their brand, allowing them to reach their current and future audience effectively.

4. Personalizes the Message

A study has shown that around 74% of audiences feel disappointed when they receive marketing messages that do not address their needs or desires. Therefore, data provides marketers with suggestions regarding the most suitable strategies, leading to a significant increase in the company’s sales and profits.

Steps for Data-Driven Marketing

There are several steps that should be followed when creating a data-driven marketing plan:

Identify Important Data

This step involves determining the priority data based on the goal of the strategy. For example:

• If the goal is to create individual user profiles, the focus should be on collecting customer data.
• If the goal is to analyze purchase behavior and customer pathways, the focus should be on attribution data.

1. Work with data collection and analysis teams to ensure all gaps in customer data structures are filled.
2. Ensure the accuracy of the collected data to guarantee positive changes in the marketing plan.
3. Establish clear policies and models across all departments involved in data analysis and collection to ensure consistency and accuracy.

Examples of Data-Driven Marketing

Here, we’ll spotlight a practical example of a company’s traditional marketing campaign and how it transitioned smoothly to one of the most powerful promotional campaigns after analyzing and collecting user data.

For instance, the LEGO company discovered that its users were mostly adults and teenagers, not children, by analyzing reports on the primary users of its brand. As a result, the company shifted its advertising campaign focus toward adults and teenagers.

LEGO spent over $900,000 on advertising campaigns in 2023, specifically targeting adults in the United States with slogans such as “Hello, Adults.” The company also prominently features messages aimed at adults and teenagers in all of its promotional content on its website. This shift was a direct result of thorough data collection about the brand’s users.

Data Collection Tools

One data collection tool is One 2 Target. By entering a set of domains, around 100 competitors, the tool provides a demographic analysis of customer data, including:

• Demographic composition.
• Age.
• Social and economic levels.
• Behaviors on social media platforms.
• Geographic location of customers.
• Gender of customers.

With this detailed report, it becomes easy to create a complete profile of target and potential customers.

In conclusion, we have explored Data-driven marketing, its benefits, and examples of Data-driven marketing.