What Is Data-Driven Marketing? Definition & 5 Great Examples

data driven marketing

Companies are now leveraging on data driven marketing like never before. With relevant data, whether it’s from accounting systems, human resources, around the internet, or any other source, you can easily improve the day to day operations in your company.

It’s because you get to focus more on scalable and actionable marketing campaigns and processes that aim to address what your customers want. That results in a massive customer gain and retention, which means greater return on investment margins and business growth.

That’s the dream of every marketer intending to position their brand in the marketplace. However, it can be daunting to put this concept into action. Well, you’re not alone. The reality is that almost every marketer gets stuck at some point.

But here are some good news: We’ll look at why data-driven marketing is important and the five (5) great examples to fully understand this concept. But first, here is the definition!

What is Data-Driven Marketing?

Simply put, data-driven marketing is an approach that uses big data to understand customer insights about a product for marketing decisions. The data analyzed helps develop actionable marketing strategies that maximize company performance while targeting a well-defined market segment and enhancing customer experience. 

data driven marketing infopic

In modern marketing, big data comes with no surprise to elite marketers, considering the multiple sources that range from psychographics to market research to digital analytics. However, technological advancements make it possible to collect, organize, and analyze data effectively.

Marketers no longer have to rely on gut instincts to make decisions. That’s a traditional trial and error approach that doesn’t guarantee results. Marketers today believe in data driven marketing to grow businesses because it’s all about factual data.

Having said that, let’s now take a look at why you need to leverage data-driven marketing.

Why is Data-Driven Marketing Important for Your Business?

Data driven marketing gives you insights to know what works for you, and that helps you make a calculated move. Here are the few benefits of data-driven marketing:

Personalizes Your Campaigns

Product and service conversion is easy with personalized campaigns. It’s because the content is tailored to a specific consumer. With data-driven marketing, you get to know how often the individual engages in online activities, their lifestyle, interests, and much more.

Such data helps you to draft content and campaigns that resonate well with customers and their brands. You’ll know how to draft your ads and the best time and place to post them for easy conversion. 

Reveals Customer Segments

Customer segmentation is the best thing a marketer can do to maximize results. With a plethora of data, it’s possible to know each segment in-depth and understand it clearly and precisely. 

That makes it possible to know the target segments that matter. More so, you can notice new areas that are highly promising and capitalize on them. Such moves help you to personalize your message to the appropriate place.

Saves you Time and Money

Data driven marketing aims to give a correct assessment of your performance, which is evident from the analysis report. If your current campaigns and strategies are not delivering the set goals, you’ll know from the analysis.

save time and money

You’ll no longer have to keep pushing on what’s not working for you, to the extent of investing more money. It brings more harm to you and your business. Analyzing data saves you money and ensures proper utilization of resources. 

Know the Future Trends

Every marketer wants to know the progress of the market and prepare adequately. The data-driven approach avails plenty of information that helps you understand the market insights, especially on customer behaviors.

With such data, it’s possible to know the patterns followed within a certain time. When coupled with an understanding of the market, you can easily know what to expect and adjust accordingly by adopting strategies that benefit you in the long run.

Makes it Easy to Optimize Multiple Channels

You obtain big data from various channels (let’s say Google and social media), and that means you get to know your performance in either channel and come up with an aligned and consistent approach to thrive there. 

Since marketing techniques vary across various channels, data driven marketing makes it possible to discover the channels that work for you and adapt a multiple channel optimization that enables you to create the right content and adverts.  

Helps in Product Development

Product development has never been an easy process for many brands. Data driven marketing informs you of the market situation and trends, making it possible to know the ideal product.

That reduces the risk of product failure, the moment you launch it. More so, backed-up evidence showcases the possibility of product profitability and popularity once it gets in the marketplace.

Maximize Customer Experience

One of the primary reasons marketers use a data-driven approach is to analyze the big data from forms, surveys, and other insights, and come up with strategies that aim to maximize customer engagement and experience.

customer experience

The improvements are quite possible because you get to know poorly performing areas, and respond with the best approach. For instance, you’ll figure out where there are poor customer services and any repulsive attitude towards your product or content.

Like any other approach, there some challenges that accompany data driven marketing. Knowing them helps you understand the areas that many marketers fail and streamline them for your betterment. Here are some of them:

  • It needs extensive commitment and effort to collect data, integrate it in various systems, and analyze it.
  • It requires you to know what to ask to get the right data and complete the process successfully.
  • It requires competent staff with expertise in big data analysis and interpretation to get the work done.

How to Create Data Driven Marketing: 5 Great Examples to Help You Understand

Learning from others will help you understand and create a data driven marketing strategy that works best for you. Here are five (5) great examples of data-driven marketing.

Example #1. Use Personalized Marketing to Maximize User Experience, Coca-Cola

Big data enables you to understand your customers in detail, making it possible to create and personalize their experience. It’s because you know the dislikes, preferences and much more.

The soft drink kingpin, Coca-Cola, understands the importance of customizing personal experience very well. The company collects massive data, which they have used to maximize customer segments.

Customized flavors on Coke soft drinks, the introduction of Coca-Cola Zero Sugar, increased supply of Minute Maid in various regions, and the launching of self-service drink machines are a result of big data analysis.

Example #2. Retarget Website Visitors Based on Behaviors, Netflix

Retargeting audiences is a very effective data-driven marketing strategy. It allows you to reach out to prospects who have browsed your website and shown interest in what you have.

Netflix knows this very well. You must have seen those ads that recommend you to watch a particular series on Netflix since you browsed it or streamlined specific videos in your streamline service.

Netflix takes data on movies you watch, your viewing habits, search queries, and everything in between. They analyze it and know what to recommend to you through valuable ads that motivate you into paying for the subscriptions.


Example #3. Use Customer Behavior Data to Send Highly Targeted Email Campaigns, Hubspot

Email marketing remains a powerful marketing method, and it’s even better when addressed to a highly targeted and personalized audience because it brings about attention and conversion.

Hubspot leverages personalized email campaigns based on customer’s behavior to win prospects. For instance, if you’ve tried to sign up for their service but didn’t complete the process, they’ll get to remind you via emails.

It’s because they analyze data, and in return, prompt you to take action. Multiple SaaS brands adapt this strategy to flag prospects’ behaviors and remind them.

Example #4. Use Demographic Data to Identify Customer Segments, Amazon

Marketers know the power of demographic data (location, job, gender, age, and so on) when understanding customer segments and personalizing the content.

It delivers massive insights into the prospect’s interests and needs. That’s what the giant e-commerce store Amazon does to reach out to customers in a particular area, who needs a specific product.

Significant data insights have made it possible for Amazon to incorporate the AmazonFresh for grocery delivery and Amazon Prime.

Example #5. Use Data-Driven Advertising to Target the Audience, Walmart

Data driven advertising allows you to target users with ads on items they have shown interest in. With that, prospects get to know about the brand and the store products’.

Walmart is an excellent example that leverages data-driven advertising to get customer insights and place ads where they’ll reach to target customers throughout the internet. 

Walmart has taken advantage of social media, especially Facebook, Twitter, and Instagram, to target customers, and that has brought massive profits. 

Implement Data-Driven Marketing Today to Grow Your Business

Hopefully, you found this article on data-driven marketing, its benefits, and 5 great examples helpful. Data-driven marketing might take time and effort, but it’s gratifying in the long run—Amazon and Netflix evidence it all.

Do you intend to implement a data driven marketing strategy, but you’re still experiencing a hitch? Talk to us today, and let’s help you make factual decisions that positively impact your brand, boosting the ROI.

Shawn Manaher

Shawn Manaher is the founder and CEO of The Content Authority. He's one part content manager, one part writing ninja organizer, and two parts leader of top content creators. You don't even want to know what he calls pancakes.

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