Did you know that when you use data to drive your marketing, you’re 6x more likely to be profitable year-over-year?
That’s right! While data has a bad rap for being dry and boring...
when you know how much it can boost your business, we think you’ll see it as nectarous and exciting.
Data is easy to glean and crucial to creating a strategy that will grow your business. It takes the guesswork out of optimizing your campaigns — so you can make them more targeted, more effective, and more profitable.
So without further ado, let’s dive in to everything you need to know about data-driven marketing. We’ll start with its definition and all its benefits, then show you seven ways you can leverage it to reap results in a customer-focused marketing strategy.
What Is Data Driven Marketing?
Data-driven marketing is about using analytics to optimize your contacts’ experience and drive results for your business. It’s about collecting info about your subscribers’ behavior, analyzing your findings, and applying that insight to create personal, targeted marketing messages that sparks sales.
So how exactly do you collect and analyze data? Digital marketers who get the best results use analytics tools and automations to gather and evaluate their data sets.
Analytics tools and automations include handy jewels such as:
- Google Analytics, which tracks website traffic...
- Hotjar, which uses heat mapping to measure how visitors use your site...
- Sprout Social, which tracks social media engagement and growth...
- Email marketing automation platforms like Sendlane, which allows you to send targeted, behavior-based messages on autopilot — while collecting and analyzing deep data in real time to maximize your ROI.
Helpful deep data includes anything from:
- How your contacts have interacted with your brand
- Email open and click rates
- The dollar value of each email you send
- Contact location and device
- Who clicked, who converted, what they purchased (or didn’t), and more
All this data helps you develop ultra-personalized content that fits your contacts’ needs and behaviors. Because when you have laser-focused insight into the who, what, when, where, and why of HOW people engage with your marketing efforts…
... you can make razor-sharp decisions about everything from the timing of a welcome email... to the specific audience segment of a product launch text… to the automatic deploy of an abandoned cart email that recovers lost sales.
And don't just take our word for it, check out what Data Marketing Expert & Daasity CEO, Dan LeBlanc had to say on our podcast about Data-Driven marketing for eCommece!
How Can Data-Driven Marketing Help Your Business?
Wondering what other benefits of data-driven marketing there are? Besides its potential to 6x your business(!), data driven marketing:
- Helps you understand your contacts’ motivations. The better you know your target audience and their behaviors and preferences, the more personalized you can make your messages. And the more personalized your emails, texts, and social ads are, the more you sell.
In fact, 52% of consumers say they’d switch brands if a company didn’t personalize to them. Imagine losing half your customers by not using the simple strategies we share below!
- Shows you which of your marketing strategies are working and which aren’t. That’s way better than shooting in the dark, right? And best of all, data-driven marketing shows you what to tweak so you can turn your audience into customers.
How? Well, say you’re getting traffic to your site, but some of your visitors are clicking away instead of buying. You’re gonna wanna bring ‘em back. A data-powered marketing automation tool will tell you who to win back and when. And you can create a one-and-done automation to send these visitors a nudge on your behalf.
- Saves you time and money. Data-driven marketing helps you conserve your resources by eliminating unproductive guesswork about how your marketing efforts are performing. Especially if you have a small team or limited resources, using data to develop a crystal-clear marketing strategy can really bring you clock and wallet savings!
How to Use Data Driven Marketing
Want to collect and use data to pump up your profits? Here are seven ways to gather customer data and create sales-boosting, user-targeted content. From personalized email campaigns to automated workflows, these effective ways to leverage analytical marketing are super simple, and ideal to help you get the “Yes!” much more.
1. Mine For Voice-of-Customer Data
Voice-of-customer data tells you — in the very words of your target audience — about your contacts’ pain points, desires, challenges, expectations, and preferences.
One way to gather valuable VOC data is to do interviews and surveys with your existing customers. Another way is to mine Facebook groups (or your own company page), online reviews, customer support emails, and chat logs for feedback.
We say mine because what you yield is gold. When you do customer research and incorporate the data you glean into your marketing, you know precisely what to say to persuade your contacts that your solution is exactly what they’re searching for.
2. Use Behavior-Based Automation
This is one of the most powerful tools at a digital marketer’s fingertips right now. Behavior-based automation software (like Sendlane!) lets you leverage pre-built, automatic funnels based on your contacts’ predicted future behaviors and real-time actions.
When a contact does something like join your list, register for a webinar, abandon their cart, or make a purchase, their action triggers an email or SMS from you that’s as unique as each of your contacts themselves!
This saves you time, while you’re sending out targeted, behavior-based messages on autopilot. Repetitive and tedious tasks — like manually sending every new customer a thank-you email or segmenting your list — are off your plate.
3. Track ROI & Conversions
While your behavior-based automation tool is sending meaningful messages to your contacts through the topic-specific campaigns you’ve automated…
... you can use all this deep data and all these real-time analytics to get insight into your customers’ LTV (the predicted net profit of your entire future relationship together).
And inside Sendlane, you even have access to a Conversion tab that allows you to set up, customize, and manage your conversions.
If you like keeping track of metrics that mean everything for your business, you’ll love keeping tabs on LTV and ROI. (For an extra bonus, don’t miss #6 below!)
4. A/B Split Test Your Emails
Curious whether your contacts are more likely to click a red button or a green one? Want to know if you’ll get more opens on an email whose subject line says “free” rather than “no cost”?
Don’t guess or make assumptions about how your contacts will respond to different elements....
... instead, understand their behavior based on DATA!
A/B testing (AKA split testing) gives you the intel you need to compare and contrast different versions of an experience.
Sendlane lets you test headlines, images and designs, calls to action, and much more. Use the data you collect to get it right with the best-performing choices — bringing you more wins to light up that Conversions tab on your dashboard!
5. Set It & Forget It With Email Retargeting
Did you know that visitors are 70% more likely to convert when they’re brought BACK to your site through an ad or email?
Behavior-based automation lets you immediately identify and track distracted website visitors to automatically trigger communications and follow up with exactly what they’re looking for.
From abandoned cart emails (kinda like the Airbnb example) to custom product recommendations, email retargeting helps you automatically bring visitors back to your site to recover lost sales.
To use this data-driven marketing technique inside Sendlane, just log in to your account and select the Automations tab on the left. Click New Automation, and follow the prompts to use our preset templates!
6. Track How Much Every Email is Making You
Ever wished you could know EXACTLY how much each email you send earns you? One more next-level thing you can do with data-driven marketing is track specifically which emails are working best AND the precise revenue or leads that each email is generating.
Just tell Sendlane exactly what event to track, and it’ll ID the emails or workflows that trigger your specs. Then you’ll see a gratifying Event Tracking report like this at the bottom of your Campaign overview:
7. Keep Tabs On Sign-Ups & Page Visits
Sendlane’s Event Tracking lets you keep an eye on events like signups and page visits too, which tell you even more about the return on the emails you send.
For example, you might already be getting lots of page visits, but that doesn’t mean you can’t fine-tune your efforts and get even more. Why not A/B test your Add to Cart button, then implement the winning element across the board?
You can only set yourself up for greater success — and more revenue flowing in per email!
And That's a Wrap!
The beauty is that even small or new eCommerce businesses can afford all-in-one marketing automation tools that elevate the customer experience AND conversion rates.
Not only will customer data give you a greater understanding of your contacts’ motivations…
... a comprehensive data driven marketing strategy lets you kick back and let the system do the heavy lifting for you.
So, want to see how easy it can be to collect, analyze, and use customer data?
Log in to your Sendlane account and get started!
And if you want to dive into your email data... head over to The Sendlane Training Channel and take a peek at our video on 4 Email Metrics You Should Be Tracking!