Data-driven marketing is the most effective ecommerce marketing strategy for collecting, analyzing and executing on insights from unstructured and multi-structured data that’s integrated from across the enterprise. “Data-driven marketing refers to the marketing insights and decisions that arise from the analysis of data about or from consumers.”
Those who deal with ecommerce know how important performance is when it comes to the success in the user experience. Often times, it can be quite difficult to pinpoint how to improve this area. Millions of companies both small and large are realizing that being data-driven is absolutely crucial in the success of their business. While more and more programs are being created as ecommerce is becoming hotter, technology will inevitably come to the rescue when it comes to benefiting from data driven results.
Data-Driven Marketing Strategies:
There are many factors that influence buying descisions from users on websites. More often than not, people leave ecommerce sites disappointed because they couldn’t find exactly what they wanted, product/service price was too high, shipping was too high, site was not user friendly and other reasons for shopping cart abandonment.
Examples of Data Driven Marketing Metrics
Key segments of data-driven marketing strategies include:
- Brand Analysis: This strategy is used to analyze the performance of the brand. It includes overall customer perceptions like what they are saying and thinking about the brand. This helps to measure the effectiveness of social media, analyze response, and leverage social data as part of a data-driven marketing strategy. After brand analysis, you can revise your marketing strategy if it was not done properly and can provide vital information and services to your potential customers. Eventually, drawing insights from social data results is more important because businesses don’t need to keep on debating what their customer demands – instead, they just need to campaign around what they actually gain from social insights.
- Industry Analysis: This helps to analyze how the brand holds up to its competition in entirety. This encourage brands to seek different paths to success. The main objective of industry analysis is to review the performance from the perspective of an industry as a whole. In industry analysis, you can get insights about what, when, where, who and how conversation is taking place in the industry over a particular course of time. You can get insights into what helps drive people to convert, specifically what main components encourage or deter continued conversion and provide understanding around what people enjoy (or hate) about the industry in order to find ways to reach them.
- Competitor Analysis: Last but not least, competitor analysis is the key to success. Being almost similar to industry analysis, competitor analysis allows the brand to see how they measure up against top competitors within the industry including the passion behind their brand and customers. The more you know about your competitors, better are the chances to be one step ahead of them. In competitor analysis, you need to know where your biggest competitors are advertising online. What offers and deals are they running? Which of their campaigns/ads are performing best? Which traffic sources are they using? These are some of the important questions that you should consider when developing your own advertising and marketing strategies. Collection social data and search engine data of your competitors and then following same strategies in a more sophisticated manner can surely help you to lead in the market.
- Data-Driven Insights:
- User behavior analysis : User behavior/tracking tools like Hotjar, Woopra, Google Analytics, Adobe Analytics (Omniture), and Crazyegg analyze user data and give marketers insights into what can be improved on the website to make the user buy the product/service and get to their desired outcome faster and easier.
- A/B or Multivariate testing : Software tools like Optimizely help ecommerce businesses conduct A/B testing, in which different versions of webpages can be compared for conversion rate or performance. Similarly, multivariate testing can also be done. Optimizely also enables personalization that can be used for data-driven making decisions.
- Competitive Intelligence Analysis : Other data-driven marketing tools like comScore, Hitwise, SimpleGraph, MindFire Studio and more provide real time insights to get a deeper understanding of online markets, engage with customers, and lead the social business world. This real time data will allow you to view transactions, value of orders, customers, page views and many more all within one tool.
How Data-Driven Marketing is Useful?
By monitoring these insights, marketers and ecommerce businesses will be able to see insights at real time. You’ll be able to monitor the most activity within certain time frames and active customers. If you see that a particular customer typically comes back every month, and they miss a few months, you might have missed your window of opportunity to reel them back in. If you will reactivate customers through email marketing and bring them back in, then you’re able to use this timing effectively.
From small companies to large organizations, data-driven marketing has become crucial as it targets their audience and helps to yield better ROI results than ever before.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.