Nowadays every Marketer implements the data marketing strategy because data-driven marketing plays the fundamental part of the advertising and business strategy. Data-driven marketing refers using data about customers to drive marketing communications. Use of customer data started to manipulate in 1930s by Arthur Nielsen. It is a form of direct marketing using database of customers or prospective customers to generate the communication in order to sell or promote the product or services. Database marketing uses to direct communication with individuals, like direct mail and email campaigns.
Main types of data driven marketing
There are two main types of marketing database such as consumer database and business database. Consumer database (B2C) uses to sell the products or services to customer or end users. Typically consumers database include the consumer name, address, email, phone number, age, income, purchasing history and other consumer attributes.
Business marketing database use to sell or engage between the companies. It called as B2B database. It includes the company name, address, email, contact person, phone number, email etc. Main B2B database providers are Zoominfo, LinkedIn, Owler, InsideView, Salesforce, LeadGenius, BizProspex, Hoovers and D&B.
Major challenges of Data-driven marketing
Database marketing involves with set of combined skills such as some level of understanding the database technology, analytic skills, Statics, business acumen and appreciation for the psychology of consumer.
Collecting data is the main challenge. New data-driven marketers inspired by the ideas of collecting information and most of the marketers wonder where to find the data, others overwhelmed by the data, it create the fear of data-driven campaign. Further every county has different data protection rules. Therefore marketers should concentrate the government rules and regulation according to the region or county when they do the data collection or marketing campaign
Validating the data is other main challenge. To get benefit from the data it must be fresh as possible. Therefore, you should update data often to get better result. Managing opt-out also biggest challenge, Opt-out can come from various sources. Consumers can and do the request to take off mailing lists.
Another challenge is data silos. Only 8% of companies store all their data in one place or in data warehouse, others distributes between location, teams departments etc. Dispersed data is unable to provide a single customer view. Therefore 42% of marketers can run basic performance reports only. Maintain the common data standards, change the culture of data exchange and having marketing analytics platform are the possible solutions.
Building the in-house data team is another challenge. Handling large volume data often required the data specialist.
A good data- driven marketing strategy includes the objective of the data, collecting and organizing data, analyzing the data, organizing or making campaign and measuring and tracking the progress.