By Jessica Hawthorne-Castro (YPO Los Angeles)
Original Publication: YPO.Org
How companies are leveraging data to develop complete, multi-channel pictures of exactly what their customers think and want — and then fulfilling those needs.
There isn’t a corner of the advertising world that hasn’t been touched by data-driven marketing, or the use of data to make good decisions and improve engagement with both existing and future customers. And much like the proliferation of data is impacting the business world as a whole, effective data integration and assessment continue to play a key role in helping companies enhance their value across numerous channels.
The flow of data throughout the data-driven marketing economy is forcing traditional producer-centric firms to become increasingly customer-centric, according to the DMA Data-Driven Marketing Institute in “The Value of Data: Consequences for Insight, Innovation, and Efficiency in the U.S. Economy.”
In today’s organizations, customers are used to getting exactly what they want, and they expect companies to fulfill those needs. Through the use of both internal and external data, companies are learning how to “crown” their customer — truly understand what makes them tick — and then develop campaigns that engage those buyers in the most effective manner possible.
The rise of the data-driven marketer and consumer
More than 40 percent of brands plan to expand their data-driven marketing budgets in the near future, according to eMarketer. Data enables companies to make better decisions and map out a clearer customer journey. It also enables brands to personalize content more effectively and at scale.
Data-driven marketing has advanced significantly in the programmatic buying sector, but it also impacts campaign creative. In the past, creative was produced once, with one version for everyone — an ad was one, final, self-contained file that could run anywhere. That is no longer the case. Intrusive rich media ads are losing ground to more consumer-friendly formats that use personalization, rather than interruption, to get the message across. Creative, media and data are all converging as marketers strive to tailor messages based on who is seeing it and where.
The use of customer information for optimal and targeted media buying and creative messaging, data-driven marketing has been key to taking any guess work out of questions like who, when, where, or what message, and making those answers actionable. Consumers are becoming increasingly picky about the messages they read and the products they buy. In this landscape, marketers have to create personalized messages in order to attract and retain customers. This requires collecting and analyzing data.
No more hit-or-miss media testing
Data-driven marketing has effectively replaced the traditional “hit-or-miss” test component of the typical marketing campaigns. For example, at Hawthorne we typically ask new clients for one to two years’ worth of data in order to identify statistically relevant response curves for past campaigns and marketing efforts. We then use a statistical approach to web attribution analytics to measure the response curve of media airings and extrapolate the hidden signal from the visible signal through a proven methodology. With this information in hand, marketers can set baselines for current and future campaign effectiveness.