“Marketing without data is like driving with your eyes closed”, rightly quoted by Dan Zarella.
Marketing is no longer a gamble, but rather a well-planned data-driven operation. Gone are the days when creativity ruled the marketing landscape, modern-day marketing takes a lot more. A modern-day marketer needs to be creative and strategically advanced to design a fruitful marketing campaign. Technical advancements and digital marketing are offering marketing operations a whole new direction based on tangible outcomes.
With millions of dollars invested in marketing each year, the occupants of the executive chairs are looking for solid solutions for their business problems. Today marketers are turning away from traditional marketing practices and concentrating more on targeted marketing and analytics. Marketing analytics is gathering steam as all of the marketing riddles are solved through data.
What is marketing analytics?
If marketing is the road you need to take, marketing analytics is your steering wheel. Marketing analytics is the process of transforming data gathered from various marketing activities into reliable and actionable marketing insights. In a world where the customer is the king, marketing strategy analytics will gain you a competitive edge by delivering the right insights based on customer preferences.
With millions of brands promoting themselves through numerous platforms, it takes a lot of effort to acquire that one click on your CTA. Data analytics delivers reliable insights on customer preferences and their buying pattern to eliminate guesswork. A firm can use these insights to carve the right target and medium for all their marketing communications. Many data-driven organizations already acknowledge the importance of targeted marketing strategies.
For example, Netflix is one of the firms that believe in the potential of data analytics for customized marketing. Netflix has grown into a digital powerhouse whose streaming innovations have revolutionized the way we watch and evaluate entertainment. With more than 214 million subscribers all across the globe, Netflix joined hands with marketing analytics strategies to maintain the unicorn status.
With millions of streamers visiting the site every second, huge amounts of data are generated. Netflix collects this data and leverages its finest algorithms to develop personalized content for a better user experience.
75 percent of audience engagement is driven by Netflix’s well-designed recommendation algorithm. A targeted marketing strategy enables Netflix to retain its customers and enhance customer loyalty. Two-thirds of paid subscribers return to the platform and renew their subscriptions, indicating a positive customer experience.
Enhanced customer experience
According to a study conducted by Hubspot, only around 22% of companies are content with their conversion rates. Marketing optimization plays a fundamental role in improving the conversion rate by delivering a better customer experience. From channeling user journeys in your site to being answerable to their concerns, data analytics provides solutions to enhance customer loyalty.
Starbucks is winning the marketing game by combining marketing strategy and analytics while sipping a hot cup of freshly brewed coffee. Their dedicated fanbase is built not just on the quality of the coffee they serve, but also on the experience they deliver while doing so. Starbucks gathers a lot of data from its 90 million customers who visit its outlets all over the world every week. They utilize this data to enhance their user experience and boost customer loyalty.
Starbucks redefined its marketing actions by deriving insights on customers’ buying patterns and coming up with offers tailored to their needs. They use previous purchase data to identify which customers should receive which offer at what time. Based on the order that you have placed on your last visit to Starbucks, they generate recommendations for your next order. Apart from providing an in-store experience, they provide reward programs to enhance customer loyalty.
New product development
An innovative product should meet the expectations and demands of its targeted customers. From R&D to product development, new product development is a time and money-consuming process. Accuracy in identifying the gap and delivering the right product requires a robust understanding of the market.
Data analytics gives valuable insights into the customer demands and existing market opportunities to redefine marketing actions. Utilizing the potential of analytics, firms can evaluate the performance of a product or service even before it reaches the market.
Coca-cola, a household brand, has been ruling the market for a very long time. This long-term sustainability is the result of advanced product development marketing strategy and effective utilization of data. The company utilizes data analytics for new product development and also for optimizing its targeted marketing strategy. Coca-Cola has always prioritized customer expectations while developing new products. Data analytics lead to a better knowledge of shifting market demands and customer expectations.
Coca-cola launched cherry sprite based on customer preferences and their feedback. They introduced healthier beverages such as diet coke and coca-cola zero sugar to cater to the expanding health-conscious demographic. They gave the recipe book in the hands of its users to bring up flavors based on their preferences.
A solid pricing strategy is critical for growth because it reflects the value you deliver. Firms can develop successful pricing strategies that could boost the profit margin by studying historical data. A smart price structure should follow market norms and be flexible enough to adjust to market fluctuations. Dynamic pricing analytics tools are employed by businesses to enhance flexibility and take advantage of market opportunities. Dynamic pricing is a pricing approach in which businesses set flexible prices that shift in response to market conditions.
Amazon’s dynamic pricing approach is well-known, and it is universally recognized as one of the most effective pricing strategies in existence. With the use of advanced data analytics, the firm collects and analyses huge data, anticipates future demand, and predicts future trends.
Amazon uses dynamic pricing analytics to forecast customer demand and adjust the price accordingly. Apart from customer demand, dynamic pricing is influenced by availability and competitor pricing. When a person views the same product several times, it suggests that the customer is willing to buy that product and pay more for it. Amazon adjusts product prices based on how consumers interact with the site.
To maintain the credibility of data analytics-derived insights, technological efficiency is essential. Our technical expertise and industry knowledge enable us to deliver accurate insights that you can rely on. Explore and employ our data analytics capabilities to add momentum to your marketing efforts.