What Is Data-Driven Marketing?

what is data driven marketing

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Data data data… you would probably have heard of that 90% of the world’s data has been generated in the last two years alone. This number would have gone up exponentially by now…

So, what does data have to do with marketing? And, why do we always hear “data” in the press these days?

The buzzword “big data” seems to be getting a fair bit of attention from different industries around the world, particularly in Marketing.

And, these terms are also becoming more and more popular everywhere – analytics, data science, algorithm, machine learning, open data, smart data in recent years.

CEO Jack Ma recently predicted that data would become one of the world’s most valuable commodities, “like water, electricity and oil.” sourced from Bloomberg.

Obviously, the world has changed to be more data-driven.

How has it changed? The digital transformation has allowed us to become more data-driven than ever before…

Marketers are no longer using their gut feeling to make decisions. Savvy marketers are using actionable insights extracted from mountains of data to make well-informed decisions.

So, how leading businesses are actually using data now?

Here are a few examples…

Facebook is using data to create an advertising platform allowing brands to promote to billions of users. Have you noticed a decline in your Facebook organic reach? Start collecting emails from your followers now. That is just our two cents.

Other social media platforms are following suit. You would have probably seen sponsored ads on Instagram and Twitter. Watch this space! There are more to come…

Amazon has built a product recommendation system which displays relevant items based on your transactional and behavioural data. It is a no-brainer that all online stores should have had this by now.

It is clearly not a coincidence to see related items on their website. Some even claim that Amazon’s predictive model is capable of sending stuff before you order it. That is incredible!

The controversy Uber’s God View is able to identify where the customers and the drivers are with location data in real-time. Can you imagine how powerful it could be if your business had this view?

Fitbit is helping users to track their health and fitness data allowing users to monitor all these valuable data in their app and online dashboard. Insurance, health and fitness industries are very keen on these data.

Coffee meets Bagel is probably one of the most innovative online dating apps which uses a unique algorithm with social media data to find a quality match. The founders famously rejected the $30 million offer on Shark Tank. We think we know why…

A few years ago, Harvard Business Review claimed that data scientist is the sexiest job of the century.

So, what is Data-driven Marketing?

In short, data-driven marketing is about collecting data, analysing data and using these data in providing actionable insights from internal and external data which can then effectively empower marketing in many ways.

And, you are already part of the big data revolution!

How do you use your data to fuel growth? Tell us in the comment below.

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