Modern companies use not only programming to keep up with the times. It is hard to imagine, but in fact, marketing and its foundations also play an important role in the development of information technology. A striking example of this is BigData.
But there is another area that has received a lot of attention lately. We are talking about the so-called Data Driven Marketing. This direction will be discussed in the article. The information will be equally useful for both beginners and experienced analysts.
Definition of the term
Data driven in English means “driven by data”. So it is customary to call a certain approach to management, based on the information collected. It is actively used in modern companies and firms to ensure successful business.
Data-centric enterprises stand out from the crowd with the following features:
- experienced analysts work there;
- the main decisions in the company on the conduct of business are made, based mainly on the collected materials;
- employees are able to analyze “dates” in a market context.
At the heart of Data Driven is the analysis of information, which is always objective. If the materials received are correct and presented in sufficient quantity, the company will be able to make the most profitable and profitable decision.
The considered trend of management based on data obtained in one way or another provides for certain principles. The data-driven approach implies from the company:
- Full willingness to spend resources. The received information needs to be stored somewhere and processed with something. Next – to make diagrams, graphs and diagrams. All this requires certain resources, including funds and human resources.
- Competent analysis and interpretation. Materials should not remain “bare figures”. They need to be correctly interpreted, defined and searched for areas of application. For the implementation of the task, experienced employees are required, as well as rich experience.
- Willingness to trust the information, as well as rely on it in the formation of further strategies of behavior in the market. Data-driven is just a data-driven approach and interpretation. It does not give 100% guarantees of success. But having high-precision data allows the company to beat the competition.
Organizations that have taken this option as a basis often achieve very impressive results in the course of their activities in the shortest possible time.
It is worth paying attention to the fact that the management of the type in question performs important functions. Namely:
- allows you to maximize the efficiency of investments made in business;
- reduces existing costs several times;
- uses full customer/consumer focus;
- allows you to quickly respond to any adjustments and changes in the markets;
- leads to profit maximization for the organization.
Given the trends in the development of IT and Bid Data, the chosen direction is quite promising. Business analysts who have mastered it achieve not only good results, but also a decent salary.
Difference from data-informed
There are different decision making models. If you give them clear definitions, you can quickly figure out which option to choose for a particular company. This is how Data-driven and Data-Informed are distinguished.
The first option provides:
- work with requests;
- data collection through all existing channels;
- checking for harm to activities;
- complex implementation process;
- certain skills of the company’s employees in the field of statistics;
- “disposability” of information – in order to answer new questions, it is necessary to conduct new studies every time.
The Data-Informed model does not provide specific answers. This is just a way of looking for confirmation of the chosen strategy of behavior. Used to form hypotheses for further development. It mainly helps in situations in which the analyst needs to justify / provide evidence of the chosen “action plan” or demonstrate a report.
Large and small companies are slowly mastering the mentioned direction. Driven Marketing is used in various fields of activity of companies:
- management – business management based on objective factual materials;
- design – the creation of products based on information obtained through testing, testing hypotheses, as well as all kinds of research;
- marketing – the implementation of marketing, built using the analysis of data collected as a result of surveys of the target audience and contact with consumers.
It is worth considering the features of each direction. For an organization planning to take a leading position in the market, all this is the basis of doing business.
Experts will be able to pursue a more flexible policy when making certain decisions. Objective information helps to understand the preferences of the target audience, as well as reduce the cost of attracting it. Analysts will be able to find new sources of consumers, develop concepts for communicating with them, and increase the loyalty of potential customers.
Materials are tracked in real time. Due to this, it is possible to quickly respond to ongoing adjustments – both positive and negative. The approach is mainly used by large companies:
- Burger King;
Medium business also uses driven marketing, but not on such a large scale. For small businesses, this approach is quite costly.
When using end-to-end analytics and marketing, the direction in question plays an important role. Up-to-date information about users contributes to:
- creating profitable personalized offers;
- predict the possible behavior of the company’s customers;
- develop and implement effective advertising campaigns.
Marketers have to figure out where the traffic comes from, which channels are considered the most effective. If you do not give a general idea of \u200b\u200bthe relevant areas, business development will take an extremely long time.
Driven Marketing helps collect information about user behavior across various web portals and applications. Analysts get data on how satisfied the public is with the quality of service and specific products.
The result is the ability to correct errors, as well as improve business processes. It is also possible to form ideas about future (potential) customers as accurately as possible.
In the case of design, the situation is different. It is not enough just to get some data. They must be used wisely.
The information obtained is important for creating products that meet the needs of the target audience, as well as bring profit to corporations. Previously, designers had to rely on their own experience and intuition. With the development of IT, the corresponding tasks are solved differently.
The designer has to:
- keep track of what is trending right now;
- analyze consumer reactions to products;
- make adjustments to the design quickly.
Due to Driven Marketing, there is a significant time saving for all participants in the process: both designers and customers. Decisions are made faster and better, they have a logical rationale. The number of necessary edits before the release of products is significantly reduced. This is beneficial to the company in every sense.
The effectiveness of the operations carried out and the results of working with data are evaluated using so-called metrics. There are several types of them:
- CPA – cost per targeted user action;
- CR – the number of portal visitors who perform targeted actions in relation to all who visited the project;
- “Abandoned Cart” – the percentage of abandonment of purchases when placing orders (this tool helps to better understand what prevents the consumer from completing the initially formed purchase);
- LTV – buyer’s lifetime value (reflects the net profit that a particular buyer of the relevant company gives in total for all time);
- CRR is a customer retention metric that gives a report on how long a business is able to maintain relationships with the “public”;
- Churn Rate – the outflow of visitors, indicating how many people have stopped interacting with the enterprise for one reason or another.
Based on these metrics, the specialist is able to make decisions that favorably affect the enterprise. The principles of analytics can be continued further, but the examples given are fundamental for all existing services. Due to them, the analyst understands how to make the activity bring the maximum return with minimal costs.
Tools for analysis and visualization
In order to start doing business competently, it is not enough just to get information from various sources. It needs to be made useful. To do this, it is important to be able to put into practice certain analytics and visualization tools.
In the case of Driven Marketing, these include:
- Analytical tools provided by web services. They include Google Analytics, Tag Manager, Yandex.Metrika. They collect and store data about user behavior on pages on the Web. It remains for the marketer to start analyzing them in order to produce the most effective result.
- End-to-end analytics tools. These include Roistat, Alytics, CoMagic, Mixpanel. Reflect the effectiveness of the advertising campaign. Help track user journeys, from viewing web ads to product sales.
- Big data technologies. They are becoming more and more common. They allow collecting, sorting, and storing a large amount of materials in electronic form. Appropriate tools can contribute to faster analysis in a rapidly changing market situation.
- CRM system. Helps bring sales to automation. It provides for the possibility of evaluating the results obtained as a result of the implementation of marketing activities.
- visualization services. These include Chart.is, TimeLine, ZingChart, Data Studio, Power BI. Such a system tells about the state of the business at the moment. It also reflects information about the success of advertising campaigns organized using dashboards (special “dashboards”).
Although the listed software is not exhaustive, it is in extreme demand from companies and enterprises. With them, you do not have to spend extra time to achieve your goal. Analytics and related routine processes will be automated to the limit. The main forces can be sent to make informed decisions.
How to get started
It is not enough to know Data Driven approaches, they need to be correctly implemented. There are rules that have become the “basis” for bringing ideas to life.
To work with analytics by the considered method, you need to do the following:
- Identify sources of data that will help to understand the identified problems. An example is the study of information from applications.
- Conduct the formation of a team that is needed for further analytics. Sometimes only one specialist is hired and trained. Specialized courses help with this.
- For correct conclusions, gather together information on one platform. This will help not only avoid mistakes, but also save time / resources.
- To form an infrastructure for storing and working with electronic materials. Without this key point, no company will be able to cope with the tasks. It is necessary not only to correctly collect data, but also to “organize” them. Structuring in this area is far from the last thing.
Now it remains to collect information, conduct an analysis, build hypotheses, the points of justification of which are “dates”, and also inform the heads of enterprises about the conclusions.
How to become a specialist
When a person is interested in a particular area of activity, he begins to think about how to become a specialist in the relevant field. In the case of Driven Marketing, specialized training is ideal.
A person can graduate from a university in the direction of “marketing” – they give basic knowledge there. But there is another solution. This is to attend a special course in the chosen direction. Training can be both remote and face-to-face. Organized by educational centers. The term of study varies from several months to a year. Upon graduation, a person will receive a certificate of the established form.
Attention: the distance course on Driven Marketing can be taken from anywhere in the world. You may also be interested in the following courses: