Marketers have realized the crucial role of digital marketing data in understanding consumer behavior and measuring the impact of media actions on their business. However, the abundance and complexity of marketing analytics, encompassing media, CRM, and PRM data from various sources, present challenges. Once the data is collected, structuring it becomes vital to derive meaningful insights.
Harnessing the Power of Data in Digital Marketing: Collecting and Centralizing Marketing Data
Effective data collection is the cornerstone of data exploitation. To ensure quality, data collection must meet three imperatives:
1. Integrity: ensuring the data’s accuracy to build a reliable foundation
2. Completeness: capturing the full consumer journey for unbiased analysis
3. Granularity: transforming insights into actionable strategies by avoiding overly broad generalizations
Understanding the reality of consumer behavior in the digital world involves three main categories of data:
1. AD-CENTRIC DATA:
This category includes interactions between prospects/customers and advertising messages. It helps reconcile purchasing paths, measure overall performance, and comprehend interactions between communication channels. Tracking ad-centric data is essential for optimizing media mix and budget allocation.
Advice: Whether managed internally or by external service providers, tracking media campaigns is crucial for future performance maximization.
2. SITE-CENTRIC DATA:
This data captures interactions between consumers and websites/mobile applications. Analyzing site-centric data allows monitoring of browsing quality, conversion rates, average basket value, turnover, entry/exit pages, and A/B testing of landing pages. This facilitates KPI monitoring, identifies areas for improvement, and enhances user experience.
Advice: Ensure the quality of your tagging plan to align with optimization goals and KPIs.
3. USER-CENTRIC DATA:
User-centric data pertains to users belonging to specific audience segments. Tracked and stored via cookies, it can be enriched with data from DMP, CDP, or CRM systems. User-centric data enables differentiation of browsing and purchasing behavior based on audience/segment membership. Cohort analyses, “lifetime value” vision, and cost analysis aid in adapting media strategies accordingly.
By combining these data categories, a holistic understanding of performance is achieved. Simplified as an equation: visit costs (ad-centric data) x conversion rate (site-centric data) = cost per acquisition. Introducing the user dimension: visit costs + profiles (ad-centric + user-centric data) x conversion rate + profiles (site-centric + user-centric data) = cost per acquisition (per profile). This data empowers precise performance assessment and informs business strategies.
Tip: Start with fairly broad audience segments before diving into fine-grained segmentation. Gradually refine segments based on feedback and strategic importance.
Unifying Data for Enhanced Digital Marketing Strategies and Analytics
Collecting digital marketing data is valuable, but enriching it with other media data and conversions is even more impactful. To address the omnichannel behavior of consumers, centralizing and unifying data is crucial. Reconciliation keys such as email addresses and telephone numbers are employed, incorporating loyalty programs and in-store technology tools. Unification enables precise insights, such as linking TV spots to site visits or online leads to call center conversions.
Centralizing data from digital channels provides a comprehensive view, optimizing campaign impact and budget allocation.
Tip: Centralizing all data at once can be unrealistic, especially for large organizations. Conduct case studies to demonstrate the usefulness of data aggregation with each new dataset.
Data Analytics: Empowering Data-Driven Marketing in the Digital Landscape
In the era of data abundance and complexity, harnessing data’s power is paramount. Machine learning techniques and algorithms enable effective data analysis. Optimization algorithms improve search bids and audience targeting, while cross-device reconciliation unifies purchasing paths. Attribution/contribution solutions leverage artificial intelligence to objectively assess media touchpoints’ impact based on millions of data points and combinations.
Utilizing these solutions, fueled by rich and centralized data, empowers media mix optimization and enhances overall company performance.
Tip: Understand the workings of algorithms used by solution providers and their reliance on data types to make informed decisions. Avoid “black box” solutions.
Leveraging Data to Drive Marketing Decisions at All Levels of the Company
Having collected and processed data, it’s time to leverage it for business purposes. Utilize data at different levels within the organization:
1. Operational level: Optimize daily online campaigns at a granular level, including campaigns and keywords, by internal teams or media agencies.
2. Marketing and communication departments: Develop a macro vision to optimize overall investment distribution between performance and branding strategies, targeting new and existing customers.
Tip: Analyze data regularly, capturing the evolving media mix, consumer behavior, and seasonal variations. Evolve the media mix gradually for easier identification of growth drivers during subsequent analyses. Consider market solutions for automated analysis, some of which integrate with campaign management tools.
While many companies collect data, few fully exploit its potential. Siloed approaches hinder overall consistency and hinder performance. It’s crucial for senior management to drive changes, fostering a data-driven culture for sustained success.
Data has become the oil of today, driving value creation and competitive advantage. Companies like Google, Amazon, Facebook, Apple, and Microsoft exemplify the power of data-driven strategies, occupying top market capitalizations.