Marketing can be a complex area. It can be overwhelming deciding who to target and where to target them as well as allocating a budget. This is especially true when you don't even know if your chosen marketing strategy is actually effective or worth the budget spend.
Untargeted may be cheaper than targeted marketing, and it may bring you an upswing in new customers. Nevertheless, you then must identify how much that is a coincidence, other factors or the campaign. This can be timely and a waste of resources, although targeted marketing may cost more, it is effective, trackable and the individuals targeted share similar needs and characteristics to your current customers allowing you to have data-driven decision making. Meaning they are more likely to purchase your product.
Data-driven marketing strategies are formed from insights gained from analysing data either from the activities of your own business or wider market data to identify trends, patterns and details. From the data, you can create a baseline of information which allows you to establish actionable campaigns for your business. Essentially you are taking the information which is available and using it to create focused campaigns to reduce your spend and improve your ROI.
Customer Source (Traffic Source)
Understanding where traffic to your website is coming from is a key piece of the puzzle. We can dissect the sources in great detail, if there is a lot of referral traffic from certain websites, it may be a good idea to contact the owners and nurture and develop that relationship. If your paid ad campaign brings in a lot of new customers, this knowledge will allow you to increase the campaign spend since you already know it works and allow you make data-driven decisions in the future.
Following on from the traffic is the essential conversion rate.
Getting increased traffic is great but not if no one buys anything. Think of your visitors as window shoppers, these additional one hundred people browsing who in the end don't become customers aren’t beneficial. Combining your traffic sources with your conversion rates for each source, allows you to easily see what channels are working and are worth the investment. You can stop using those that are not productive and reinvest in those that are. This makes your marketing budget go further and ultimately improves your bottom line.
Customer Lifetime Value
One of the most important metrics for understanding customers is their Lifetime Value (LTV), it’s the most powerful way to understand the worth of a customer to a service provider now, and how their value will change over time.
When it comes to marketing budgets, depending on your business model, it's important to note that you don't necessarily make a profit from the first transaction with your newly acquired customer. LTV can help you make future marketing decisions, this will allow you to decide whether to increase marketing spend, what product to target at which customer and how you can retain customers through services and marketing. One significant benefit of LTV is that if improved it will increase average order value and repeat purchase rate.
These elements combined provide a powerful data driven marketing toolbox for you to leverage as needed. LTV can help you decide on a maximum cost per acquisition (CPA) on a pay-per-click (PPC) campaign.
All of this sounds great and should in theory help grow your business and improve bottom line performance.
However, what about setting it up, monitoring and managing the process across multiple platforms, markets and divisions?
Marketing Automation is a must for managing the process at scale. Excel can be used as its dependable and easy, although as data grows there is a greater risk of error or data being lost. You need a system which monitors the performance of your marketing across the spectrum and delivers real time information and reports that you can act on.
Due to automation software systems being dependable and providing accurate data, you will be able to make faster decisions and eliminate the uncertainty of guesswork. Automation brings marketers multiple benefit as you’ll be able to gain insights into marketers and competitors performance, giving you a more in-depth understanding of customer behaviour. So you’ll be able to get ahead in the industry and retain your customers for longer.
Other internal benefits are that it will also allow everyone within the organisation to access the data relevant to them, without training. Moreover, you’ll be saving capital due to no training being required or having to purchase costly hardware and infrastructure.
If you are considering putting together a marketing strategy and want an automated system that will deliver results consider talking to us a Ddaas. Put simply our mission is to bring tangible value to your business by monetising your data and helping you make data-driven decisions.