Data-driven marketing is a type of marketing that uses collected data to define your marketing strategy.

The main advantage of data-driven marketing is that there is no guesswork involved in anything. Instead, everything supports strong numbers.

That’s why 67% of marketers say that the highest value of data marketing is speed and accuracy. With data-driven marketing, you’ll be able to target those customers on an individual level, often in a personalized way.

When you run a marketing campaign, you have the option of creating automated marketing activities. For example, if you will use the collected data to identify consumers, whenever a member of this group requests information, you can send the appropriate information immediately.

As long as you can access this information, you can tailor your marketing specifically to their wants and needs instead of sending the same message to everyone.

Why should your business use data-driven marketing?

Data-driven marketing is very popular in the modern business world because it makes life easier for marketers and produces better results. The biggest advantage of having a data-driven strategy is that you don’t have to make business decisions based on “feelings” or other assumptions.

For example, instead of guessing, you can determine your ideal customers based on the information collected from past customers. You can see where you are generating customers with the highest CLV (customer lifetime value) and who they are.

What data should your business collect?

There is a lot of information you can collect from your customers, your website, and your ads and campaigns.

Let’s break down the useful information that should come first:

1. User data

There is a lot of data you can collect directly from your users when you interact with them.

From the first contact, you can get…

IP address, to tell you (locally) where the visitor is coming from
The first page visited, can help you identify their interests

Whether they went to your page, pricing page, about us page, or contact page, they all help you understand their buying intent.

As these visitors continue to interact with your website, they must (if you have a marketing space) submit contact information through the prospect form. Then, if you use a CRM, you can pull all that information to give you not only an idea of who they are individually but also who your prospect is and what their customer journey might be.

You can use this data to create customer profiles, showing the characteristics and behaviour of your ideal customer.

2. Website data

A lot of useful and actionable information can be obtained from your website and how people do it. For example, a heat map is a still image on a page on your website that shows you the effectiveness of your links, calls to action and general organization by showing the areas where your visitors interact the most.

3. Data marketing

If you’re running a pay-per-click advertising campaign, this is another amazing place to gather information about your audience. You can tell a lot about your customers by running multiple ads at the same time and seeing which one performs the best. This is also called A/B testing. It will also tell you a lot about the search intent surrounding the various keywords that you are searching for in terms of rank and purpose.

Of course, you won’t get all this information at once. Remember that it takes both iteration and optimization to collect data, which means you’ll need to repeat the process over and over again and scale up based on your results.

However, implementing a data-driven advertising strategy (especially in advertising) allows you to keep up with the changes.