Get to know Data Driven Marketing, Metrics, and Applications in Business

In terminology, data driven means driven or controlled by data. Based on this understanding, data driven marketing can be understood as a management approach based on a collection of information.

Usually, modern firms or companies use it actively to ensure business success. Companies that are data-centric are often better identified through experienced analysts and the ability to analyze the market context based on objective information.

The most important thing about data-driven marketing is the objective analysis of information. If the amount of information needed by a company is sufficient, decisions can be made to produce something profitable.

Principles of Data-driven Marketing

Management trends considered on the basis of data acquisition provide certain principles. The data-driven approach implies several principles that the company believes in, including the following.

1. Willingness to spend resources

Information or received in a company needs to be stored somewhere and for further processing. In order for it to be processed in the form of diagrams, graphs, or other data visualizations, resources are needed including funding and human resources.

2. Competent analysis and interpretation

A data or information should not only be considered as "numbers" or raw data. Data and information need to be properly interpreted, defined, and searched for how to apply them. For the implementation of a requirement, experienced resources are needed in order to produce the right analysis.

3. Willingness to trust information

When using a data-driven approach, companies must be willing to rely on it in forming further behavioral strategies in the market. A data-driven approach does not guarantee 100% success.

However, having high high precision allows the company to beat the competition. Organizations or businesses that have adopted these basic principles often achieve impressive results in a relatively short time.

Data-driven Marketing Applications

When using analytics and marketing in any aspect, the direction taken within a company can play an important role. The application of data and information about users can contribute to the following things.

-   Create profitable personalized offers

-   Predict the possible behavior of the company's customers

-   Develop and implement effective advertising campaigns

Marketing must find out where the traffic is coming from and which channels are considered the most effective. If you can't give a picture of something relevant, business development will take a very long time.

Data-driven Marketing helps collect information about user behavior across various web portals and applications. After that, the analyst obtains data on public satisfaction with the quality of certain services and products.

The result can strengthen a team's ability to fix product errors and improve its business processes. In this way, ideas about potential customers in the future will also emerge.

Common Metrics Often Used in Data Marketing

Metrics are measurable evaluations related to the operational effectiveness that has been carried out and the results of a business. Several types of metrics that appear in the company's operations include the following.

-   Cost per acquisition (CPA) is the cost for each targeted user action

-   Conversion rate (CR) is the number of portal visitors who take targeted actions in relation to all who visit a particular channel

- Abandoned cart, namely the percentage of purchase abandonment when placing an order and serves to better understand what prevents consumers from completing a purchase

-   Lifetime value (LTV), which is a reflection of the net profit provided by certain buyers from related companies in total for all time

-   Customer retention is a customer retention metric that provides a report on how long a business is able to maintain a relationship with a user

- churn rate, namely outflow of visitors which shows the number of people who have stopped interacting with the company for one reason or another.

Based on the metrics above, a marketing specialist can make decisions that benefit the company. The principle analysis can be continued further with basic examples that can be applied to all existing services.

The main goal of using data in marketing is to understand how to generate maximum returns with minimal costs through an activity. If done with the right analysis, this step can be a reliable strategy for a business to survive in the midst of intense competition.