- June 30, 2015
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Could Henry Ford Embrace the Data-Driven Marketing Economy?
American industrialist and founder of Ford Motor Co., Henry Ford, allegedly quipped, “Customers could have any color car they wanted, so long as it was black.”
This sentiment reflected the views of companies that valued the production of products as the heart of their brands. These firms today are as outdated as the Model T automobile.
According to “The Value of Data: Consequences for Insight, Innovation, and Efficiency in the U.S. Economy” study, brands dominating the data-driven marketing economy know how to enhance customer value to gain better positioning among their industry peers.
In this AdAge article, the Direct Marketing Association’s Data-Driven Marketing Institute breaks down the study and presents five stealable ways today’s integrated marketers use data-driven marketing.
Determine What Really Makes Customers Tick. The DMA defines data-driven marketing as the process of discerning what customers want and need, and engineering the company to provide it. If you’re unsure how to reach the right person at the right time with the right offer through the right channel, our post, “Woo More Customers with Relevant Targeted Data,” is a go-to resource.
Set Baselines for Campaign Effectiveness. According to the study, data-driven marketing has replaced the traditional “hit-or-miss” test component of the typical direct-marketing campaign.
In the past, integrated marketers examined one or two years’ worth of data to identify statistically relevant response curves for previous campaigns and marketing efforts. Now, all you need are these five data sources.
Block Out the “Noise” and Focus On What’s Relevant. Study authors at the DMA say data-driven marketing techniques let you drill down to specific marketing touch points — for example, the number of website hits after a specific direct-response tactic. But what good is this information? Read “Using Data to Build a Better Website User Experience” to find out.
Determine exactly how customers are responding. Do you know how customers find you? With data-driven marketing, you can to pinpoint the origination of online sales activities and hone your approach toward targeting particular demographics.
Reach extremely targeted customer bases. Data-driven marketing is a small company’s fiercest way to compete against larger rivals. By profiling companies like Dollar Shave Club, the study shows that smaller entities can use data-driven marketing strategies to offer customized, membership-oriented experience. To get a better sense of how this works in integrated marketing, read, “Small Businesses Reap Ginormous Benefits with Big Data.”
