Data driven marketing is a term that you hear marketers use more and more. It has become a fundamental part of advertising and business strategy and is no longer considered an innovative approach to marketing, rather a requirement. Numbers don’t lie. They tell us where we are and where we need to go. More importantly, they tell us who our consumers are and where they want to go. While data can seem overwhelming, neglecting the use of data in your marketing strategies can lead to major disadvantages.

The rise and presence of data have led to increased growth in marketing technology, from creative production to email automation. These innovative bounds in MarTech allow for a more personalized approach to marketing and help calibrate each customer’s touchpoint with the business to be fluid. This is a goldmine for companies who wish to get an edge on their competitors. As big data gets larger every second, there are huge amounts of unsorted data about consumers which we can learn about to increase sales and generate revenue. A data-driven marketing strategy will allow us to take the guesswork out of marketing and replace it with cold, hard data.

Marketers strongly agree considering 64% of them say data-driven marketing is critical to success. That is why the marketing world is focusing more and more on data-driven marketing tactics, and data production is projected to be 44 times greater in 2020 than it was in 2009. While it is clear that data-driven marketing is the way to go, getting a firm handle on data is not without its challenges. In fact, 81% of marketers consider it extremely difficult to implement a data-driven strategy. The struggle is real. To help your organization realize their data-driven marketing goals this year, this article will present a quick overview of the benefits of a data-driven marketing strategy.

By allowing data to change your strategy, you can now know what to create to keep your current audience coming back for more and to engage new members of that audience. There are numerous areas that you can gather your data from such as sales, customer opinions, buying trends, website visits and social media engagement, just to name a few. In doing so, you will gain a better idea of what your consumers are more willing to buy. When you know what they are willing to buy, you know what your marketing objectives should be. Once you’ve implemented a plan to reach this goal, you can measure how customers responded, whether they simply visited your site or made a purchase. Now you know where to invest your time and energy to ensure greater marketing investments and happier customers. Better data = better business.

Data-driven marketing is intended to enhance and personalize the customer experience. It is built on the understanding of the data you have, the data you can get and how to best organize, analyze and apply the insights that you find. These data-backed insights and metrics are then used to maximize success. Marketing has become a more customer-centric strategy. Your brand value is no longer just based on incentives and ads but on your ability to connect with your target audience, convince them to purchase, then go above and beyond to satisfy them. Data-driven marketing does just that.

Benefits of Data-Driven Marketing

Better Audience Insights

having the data to help understand your customer is the key to building a successful marketing strategy. Data gives you the demographic and behavioral data you need to create the best communication plan. Gaining actionable insights enables marketers to develop increasingly targeted campaigns that have a much more strategic impact.

Personalized Marketing

Companies must be able to broadcast the right message to the right audience at the right time in order to ensure the highest chance of conversion. By understanding user behavior through data analysis, marketing campaigns become more effective and personalized by pushing out relevant messages at specific points in the customer journey.

Excellent Customer Experience

The marketing industry has also seen a considerable increase in customer experience as a top priority.  Research by Deloitte says that a customer’s decision to purchase is impacted by their overall enjoyment of their experiences, and brands are catching on to this data.

Additionally, according to Walker, buy 2020 customer experience will overtake price and product as the key brand differentiator, and customers will expect companies to personalize experiences and proactively address current and future needs, not just predict them.

Again, the key to providing an on-point customer experience lies in a data-driven approach to marketing.

Clear Cut Clarity

With a data-driven approach, it becomes much easier to segment and target audiences than before. There are no more guessing demographic/psychographic profiles of consumers and developing buyer personas becomes easier as well.

Cross-Selling & Up-Selling

Use data to find different avenues to generate revenue from your end consumer. Are there areas in the sales funnel where you can offer specific information or content that helps to move your consumer through more quickly? Data can show you where the same products can be sold to customers more frequently. It can identify the groups of people that would benefit from specific and targeted holiday campaigns by understanding their preferences and the products that they like. Use data to sell more!

Challenges of Data-driven marketing

Data-Driven Marketing

It is true there is opposition in all things, even in marketing. However, tackling the beast of a data-driven marketing approach is not as scary when you know what you are up against. 81% of marketers said adopting data-driven marketing to be extremely difficult. Knowing what some of those challenges are, makes it a little easier to make significant changes.

The Right Team

Managing immense amounts of data is hard and attracting the right type of talent for this job may be difficult. Most brands will need a staff which specializes in predictive analysis, data science, etc

Departmental Silos

Data-driven marketing success is dependent on having high quality and integrated data. Different departments may have different goals with the data acquired which could lead to internal problems if the goals contradict each other

Poor Data Quality

A study by ZoomInfo and Ascend2 found that 64% of “very successful” data-driven marketers surveyed said improving data quality was one of their most significant challenges in achieving personalisation.

Even though, ⅓ of marketers said their data-driven strategy was “very successful,” a handful of them lacked the ability to the accurate and comprehensive company and contact information.

This challenge may ring familiar to other marketers, and act as a barrier to creating accurate customer profiles.


Data-driven marketing can be a challenge, but it is not an impossible feat. You will find when you invest in big data, it is just an investment in your customers and an investment in your business.

Essentially, data gathered about customers, such as how they are shopping, information about them, how they interact with your ads, and many other insights, should influence how you market to them. If done correctly, this knowledge of customer preferences allows for a smarter allocation of your marketing funds, which will ultimately optimize your return on investment. If they didn’t make a purchase, you can find out why or where they left in the process. Data answers all the questions you never knew you had.

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