As a company grows, it becomes increasingly challenging for senior management to answer key questions about the business’s health, progress and customers. Paradoxically, much of the data required to answer these questions will already be held by the business. However, this data is usually stored in multiple locations, making it challenging to ‘knit together’ and draw insights fast.
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.