Home Digital Marketing Your Marketing Must Be Data-Driven – Here Are the Reasons Why

Your Marketing Must Be Data-Driven – Here Are the Reasons Why

The entrepreneurs, top management, and sales and marketing team have an obligation to know the needs of their customers. It is the first step to delivering a high-quality product that will meet and exceed the expectation of your targeted market segment.

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Fortunately, this is possible through the availability of data. Marketers usually use data management tools to collect or access data, analyze it, and make sensible conclusions. There are many reasons why data-driven marketing is the best today. If you are a marketer or entrepreneur, here are the top reasons for this.

Appropriate Segmentation

Data is the basis of doing market segmentation. This is a crucial approach when segmenting a market with age, gender, buying habits, or any other factor. First, the department has to collect all crucial data, analyze it, and study the reports. From here, they can decide on how to segment it.

This, in return, helps them to make better sales and marketing strategies. Any data-driven company has clear market segments for which they will market effectively and provide the right product. Being sure of the market you are dealing with is what all businesses need.

Focused Marketing Strategies

The biggest reason for using data is to set sales and marketing strategies that are functional. Once the data shows the current needs of each customer segment, then the teams can devise the best strategies to pass information to them.

It could be customized emails and text messages, social media campaigns, or any other. Data provides an accurate guide that eliminates speculations and guesswork when laying down marketing strategies.

Enhanced Customer Experience

Customers always prefer to buy their products from sellers who enhance their experience. For sellers, customer relations means understanding the needs of every one of them and striving to personalize the product and experience to meet this. Companies that use data driven marketing use reliable sales and marketing data management tools to collect customer data and analyze it before making any strategies.

Better Prospecting

Sales and marketing teams are responsible for prospecting and turning these into sales. Therefore, they must increase the profit margins of the company. The prospecting process is not as simple as many people think since it has stages that must be planned well. Even if it starts with many prospects, they must be prioritized well to avoid wasting a lot of time on those with a small chance of converting. All of this is guided by data that is collected and analyzed using reliable tools.

Explore Other Marketing Channels

Data-driven marketing makes it possible for companies to explore other marketing channels. Accessing databases with competitor marketing data is highly recommended since it shows the channels and approaches that work and channels that are trending so that you can use them as well. Apart from this, you can also test marketing channels by yourself and keep the data to know which ones are doing well and why. Such channels include social media, pay-per-click, and stream media channels, among others. With data, you will be surprised that traditional marketing channels are still effective.

Product Development

Whether a business is in the service industry or manufacturing of goods, having the right product is paramount. They rely on data from the sales and marketing department to know what the customers are looking for at the moment and get an idea of what future products should look like.

For instance, auto companies improve their vehicles as guided by the data collected by sales and marketing, competitors’ improvements, and many others. Even small companies should use this approach to differentiate their products for an opportunity to grow.

Get to Know More About Your Loyal Customers

Unfortunately, many companies spend a lot of resources to look for new customers but forget about their loyal customers. It is easier to maintain a customer than source for a new one. Data enables you to keep understanding them, maintain an excellent relationship, and accommodate their views in your product. This is how easy it is to maintain these loyal customers.

Increased Profit Base

The bottom line of any business is to make a profit. That is why every business adopts all possible strategies of sales and marketing, operations, and sales to increase the profit base. Luckily, data-driven marketing has always yielded positive results in adding the number of new customers and maintaining loyal customers.

According to studies, companies that rely on data to lay down marketing strategies are always growing their profit base and hence growing their business. They can open new branches and expand the existing ones as profit grows.

Challenges to Expect

Data-driven marketing strategies are often faced by various challenges, especially if the business is new or does not have the right resources. According to experts in marketing, here are the main challenges:

  •       Collecting the right data – Sometimes, it can be challenging to collect the right data for businesses. Lack of the right skills and resources for the work is the main challenge in this case. However, this can be overcome by buying software and apps for data management or improving the existing ones.
  •       Real-time data collection – With the increase of data, sales and marketing departments without the right tools might find it hard to cope with real-time data. There is a need for advanced marketing data collection and analytics tools to accommodate such a huge amount of data.
  •       Relating data – Finally, there is a challenge of relating data to make logical conclusions. When there is no internal expertise and skills to interpret data, it is highly recommended to consult professionals. It is worth noting that this is the most crucial step before any decision is made or a benefit can be experienced. Hence, any company should give it the much focus and expertise that it deserves.


See, a data-driven marketing approach is important for any company. Sales and marketing teams are in a position to push the business or organization forward, but they must be careful to ensure that only the right thing is done and all hurdles are cleared. This eventually promotes growth in the company.