Customer interactions that create value – with data-driven marketing
Marketing with no data, no Artificial Intelligence (AI) and no personalization? It is inconceivable today. 83% of respondents consider using AI to create individualized and personalized customer experiences an approach that is full of promise (Digital Dialog Insights, 2020). Data-driven marketing is based entirely on customer data. It does, however, require several precisely coordinated components.
- Data-driven marketing improves customer relationships sustainably because it allows companies to engage with their customers much better.
- Essential to data-driven marketing is the right tech stack – there is no other way to process valuable data profitably.
- Once companies have implemented data-driven marketing, the activities associated with it form a reenforcing cycle.
How data-driven marketing strengthens customer relationships
The right message on the right channel at the right time going to the right person – that is the goal of marketing. Data-driven marketing comes close to this ideal by collecting, analyzing and evaluating customer data. This allows companies to target their customers more accurately than was the case with the simple campaigns of the past.
Therefore, the collected data systematically boost companies’ campaign-oriented creativity today, thus facilitating more targeted customer engagement and an enhanced customer experience in the context of the overall customer journey.
Another advantage of data-driven marketing is that it makes measuring the performance of all activities much easier. This allows companies to lay the foundation for continuous improvement, especially when it comes to optimizing target group definitions and touchpoints. Thus, data-driven marketing forms an upward spiral – with a positive reinforcement effect over time.
The tech stack for data-driven marketing
To unlock its full potential and deliver real benefits to businesses, data-driven marketing requires a sophisticated IT landscape.
The first step is a suitable Customer Data Platform (CDP), which provides for the centralized collection of customer data and brings them together from different systems. The CDP consolidates all existing information into one profile, allowing you to assign interactions to a singular identity.
An optimized Customer Relationship Management (CRM) solution is indispensable for efficient data-driven marketing. Information alone does not yet bring success – you need a sophisticated CRM system to make sure you can use your data profitably.
In addition, you need sound AI that knows who is most receptive to your offers at what time. The watering can principle is outdated – today, Artificial Intelligence predicts exactly which e-mail will have the greatest success at what time.
What to do with all the collected information in the end? All of us are familiar with data deserts in cryptic Excel tables. That is why marketers use intuitive visualization to illustrates data clearly.
The purpose of the tech stack is for you to offer your customers more than they expect – and that is only possible if you get to know them better. Offer your customers precisely the touchpoints they like to use and send them attractive newsletters at their favorite time to shop – that creates delight!
It is evident that 83% of the surveyed experts consider data-driven marketing to be the tool that will gain the most in significance in the near term (Digital Dialog Insights, 2020).
Checklist: What do companies need for data-driven marketing?
Data-driven marketing will only work with solid preparation. First, you want to determine which questions you want your data to answer and which channels you can use to collect it. In addition, we recommend that you dive into data hygiene – having high-quality data means nothing if it is not clean and in compliance with data protection regulations when you use it.
Once you have decided on a strategy, the next step will be to select the right tools. A combination of the following tools has proven particularly successful in the retail, insurance and banking industries:
- A powerful CDP – such as BSI CDP, which provides industry-specific support to companies;
- A comprehensive CRM – such as BSI CRM, which comes with a 360° customer view;
- Artificial Intelligence integrated into customer experience management – such as BSI AI, which delivers customer clusters and recommendations in real time;
- Intuitive visualizations – such as BSI Insight, which makes numbers visually accessible.
Don’t forget: It is essential that your tech stack fits your needs, not the other way around!
Conclusion: Data-driven marketing will only work with the right tools
With the right tech stack, you can take your marketing and sales activities to the next level thanks to data-driven decisions. Consequently, you can readjust trigger-based events and, in turn, ensure greater customer satisfaction. Data-driven marketing opens entirely new opportunities and strategies for companies to engage with their customers in a more targeted manner. And it is not only technical expertise that is needed: Creativity, too, will be in demand as a result of entirely new insights.
Where to start with data-driven marketing, and which tools are right for your needs? At BSI, we analyze your situation together to ensure that you have the tech stack that best suits your needs. We are always happy to hear from you.