Discover where your data-driven marketing strategy is today — and where it can go tomorrow.
Data-driven marketing is the art and science of using all the data from your engagements with prospects and customers to build better marketing strategies that will personalize the customer experience and drive sales. You see it in action whenever you open your web browser to find products and services you've shown interest in magically appearing in the form of pop-up ads.
But data-driven marketing is more than just retargeting or remarketing. It’s designing an integrated experience that drives conversions and makes your customers happy. It's operating across channels and making sure your marketing and sales teams are connected.
But data-driven marketing is more than just retargeting or remarketing. It’s designing an integrated experience that drives conversions and makes your customers happy. It's operating across channels and making sure your marketing and sales teams are connected.
The marketing process no longer stops when leads are passed to sales. Instead, marketing teams are using sales data to validate their lead-scoring methods. And more marketers are looking at quantitative data than ever before. They're capturing data that indicates where prospects are on the buyer’s journey, and using that data to create more personalized communications. CMOs are even starting to hire data scientists.
This eBook can help you assess the maturity of your data-driven marketing strategy, including where you are today and where you can go tomorrow.
Data-driven marketing is gaining traction. Over 40 percent of brands plan to expand their data-driven marketing budgets,according to eMarketer. And companies use marketing analytics in their decision- making process 43.5 percent of the time, which represents a 13.1 percent increase since 2013.
However, most companies have not reached “peak” data-driven marketing. Most marketers have a database, but either it’s polluted with inaccurate data, it doesn’t capture enough data, or the data it does capture doesn’t answer key questions like these:
Essentially, companies are not using all of the analytics at their disposal.
>40% of brands plan to expand their data- driven marketing budgets.
Data-driven marketing can help your business in different ways. Here are four benefits that will help you estimate your program's maturity level:
Data-driven strategies are proven to help you build and refine ultra-personalized campaigns. In a recent survey of 200 marketing executives, 40 percent reported that customer personalization efforts had a direct impact on maximizing sales, basket size, and profits in direct-to-customer channels. Another 37 percent pointed to increased sales and customer lifetime value through product or content recommendations.
Data-driven marketing is also incredibly effective for B2B companies. Most business buyers (73 percent) say they want a personalized, consumer-like experience. And B2B marketers see an average revenue bump of 760 percent when they switch from email blasts to customized, segmented email campaigns.
In addition to increased sales, data- driven analysis can also help you understand which strategies and tactics are most effective. Without this information, you may end up making decisions based on gut feeling or anecdotal feedback.
760% increase in revenue when B2B marketers switch from email blasts to segmented email campaigns.
Connecting your marketing database to your CRM system can help you determine what customers do before they buy — and before they make repeat purchases.
40% Believe that customer personalization maximizes sales, basket size, and profits.
37% Say product or content recommendations help increase sales and customer lifetime value.
Marketing outcomes are typically difficult to quantify. In fact, 68 percent of CMOs say their biggest challenge is trying to demonstrate the impact of marketing actions on financial outcomes. Data-driven marketing that incorporates marketing attribution can help CMOs communicate the value of marketing to decision makers who are focused on numbers.
Data-driven marketing has been proven to increase revenue, especially for businesses that sell online. The larger the company (in terms of sales revenue) and the greater its Internet sales, the stronger the contribution of marketing analytics to company performance.
Personalized content and experiences made possible by data analysis are often more effective than traditional campaigns. And closer integration with sales means you can keep marketing, even after an opportunity is opened or a lead is handed off.
68% of CMOs say their biggest challenge is demonstrating the impact of marketing on financial outcomes.
Based on our experience with Marketo Engage users, we’re finding that businesses are all over the spectrum on their data- driven marketing expertise. One thing common to almost all of them, however, is that they have room to improve.
Where does your business fall on this spectrum? And what should you do next? Our data-driven marketing maturity model can help you gauge your company’s level of maturity and determine next steps.
You are at level 0 if you:
Overview
Of course, a prerequisite to data-driven marketing is to have a database. And the good news is that a whopping 92.3 percent of organizations maintain databases to host information on customers or prospects — to at least some extent.
Moreover, 90.7 percent of US advertising and marketing professionals said they segment data addressable customer or B2B audiences. With basic segmentation, marketers can run simple email and direct mail campaigns with very light personalization.
What you’re doing with your data
At level 0, marketers aren’t performing much analysis beyond these simple metrics:
You’re at level 1 if you:
Overview
At level 1, you have some experience with a variety of single-channel marketing campaigns, including email, events, paid advertising, and webinars. You probably use marketing data to personalize campaigns. And you have performed some analysis to improve email deliverability, perhaps by removing invalid addresses and unsubscribers from your database.
You have also begun to optimize your channels — such as emails, events, and social media — for performance. And you may be using CRM data to pinpoint or to score individual leads.
What you’re doing with your data
At level 1, marketers are optimizing individual channels and taking a closer look at user behavior, which may include looking at:
You’re at level 2 if you:
More than half (54 percent) of companies say their biggest challenge to success with data-driven marketing is their data’s lack of quality and completeness. At level 2, you’re very concerned about optimizing data quality. You are also using integrated, multi-channel marketing to more quickly move prospects through the sales cycle.
54% of companies say their biggest challenge to success with data- driven marketing is their data’s lack of quality and completeness.
Rather than analyzing individual channels, you are looking at multi- channel campaigns and multi-campaign programs. That's because you have the bandwidth to do so. Marketing data and analytics users are 57% more effective at increasing their productivity with integrated marketing technologies.
You are building ever-more- personalized campaigns and nurturing leads over time. Plus, you’re using marketing attribution to explain the value of marketing to the C-suite and other leadership. In addition to lead scoring, you may have also adopted account scoring.
At level 2, marketers are optimizing multi-channel performance and advancing and refining personalization strategies, which may include:
57% Marketing data and analytics users are 57% more effective at increasing their productivity with integrated marketing technologies.
You’re at level 3 if you:
Overview
According to research by Google and BCG, just 2 percent of brands are best-in-class at data-driven marketing. Yet best-in-class brands drive up to 20 percent more revenue and 30 percent more cost savings as a result.
At level 3, you take a holistic approach to data-driven marketing and look at marketing results from companywide, regional, local, and product-centric POVs. You have probably defined both prospect and customer lifecycles and are providing leads to your customer account management and sales development teams.
Virtually all marketing strategies are grounded in data. This includes “negative data” on campaigns and programs that didn’t work. Of course, all information — good or bad — is helpful. Product marketing and sales teams rely on marketing insights to make strategic decisions.
At level 3, you take a holistic approach to data-driven marketing and look at marketing results from companywide, regional, local, and product-centric POVs.
Your C-suite understands and supports marketing activities. And marketing is fully integrated into the customer experience.
What you’re doing with your data
At level 3, marketers are creating companywide strategies such as these in partnership with product marketing, sales, and customer service teams:
High Impact. High Value. Thrive Market- ing Science, our marketing solutions are rooted in a sound, financially stable strategy supported by data and powerful market research. We identify actionable patterns in your data, and leverage key principles in Behavioral Economics and Decision Architecture to craft the perfect strategy for your company - to execute these solutions for you in the most impactful ways.
Thrive Market Science offers services to the world's most ambitious brands. Leveraging our design-driven approach to build cutting-edge digital solutions, we deliver compelling experiences to our clients and their customers.
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