Consumer data or “Big Data” as it’s sometimes called has been a popular phrase in business for quite some time. Then, the coronavirus pandemic hit, and the demand for data to enhance customer experiences skyrocketed. As nationwide lockdowns prompted more consumers to turn to digital solutions like eCommerce sites, mobile applications, and social media platforms, many companies turned to data-driven marketing strategies to acquire and retain customers.
What Is Data-Driven Marketing?
For those that are new to the game, data-driving marketing is a concept where brands use data collected from customer interactions and third parties to make more accurate predictions on consumer motivation, behavior, and preferences. These predictions or insights are then applied to marketing campaigns to improve customer experiences and sales.
Preventing Marketing Mishaps
The concept of data-driven marketing, when carried out efficiently, is ideal; particularly in this tech-dependent society. Be that as it may, not all businesses get the process straight. They make mistakes along the way that end up costing them big time. Below is a look at some of the most common data-driven marketing mishaps and ways to prevent them in your campaign.
Data Overload
Consumers are throwing data at companies from several touchpoints and platforms. Novice business owners and marketers make the mistake of trying to collect and analyze all the data. The problem with that is, not all the information is useful. So, they end up spending a lot of time sorting through and reviewing unnecessary facts or they create inaccurate insights that ruin their marketing campaigns.
The best way to prevent this problem is to set clear goals. When you have goals in place, you can sort out the data that’s necessary to accomplish them. For example, let’s say you were trying to increase sales for a new product. So, you create a social media post. In trying to reach this goal, metrics like how many people started following your page are irrelevant. Ideally, you’d want to focus on the number of clicks the post received and how many people purchased the product after reading the post.
Disorganized Data
Another mistake that businesses make when developing a data marketing strategy is the utilization of too many data platforms. These are databases, software, or applications that aren’t efficient in communicating with one another. Ultimately, you have web developers using web analytic tools, the sales team is using data from a CRM tool, and marketers are using metrics from social media platforms. Such methods create confusion and missed opportunities in marketing, customer experiences, and sales.
The most efficient way to resolve this issue is to develop a master data management structure that enables all customer data to be stored and accessed across all departments.
Security Issues
Some business owners get so wrapped up in the collection, storing, analyzing, and applying data that they forget a very important aspect - security. This information could end up lost or stolen through human error, a disgruntled employee, competitors, or hackers. If this happens, it means more than a ruined marketing campaign. It also means backlash and complaints from customers, a ruined reputation, and hundreds of thousands of dollars to repair the damage.
A data security breach is likely one of the most costly mistakes that could happen to a company. While some things may be beyond your control, you should take preventative measures to reduce the likelihood of essential information being compromised. Some suggestions might include strong password policies and efficient employee training.
Though things are starting to return to “business as usual” since the pandemic, the use of eCommerce sites, mobile applications, and social media platforms to interact with brands is here to stay. If entrepreneurs are going to continue acquiring and retaining loyal customers, they need to capitalize on data-driven marketing strategies. In an effort to make a more engaging and positive experience for target audiences, it is essential to avoid costly mistakes like those listed above.
