There is no doubt that shopping habits have changed since the pandemic. According to a survey conducted by KPMG among 1,051 Swiss people in 2021, more than 40% of people surveyed buy online. Almost half of them find online shopping convenient, comfortable and easy, and 43% of respondents say they buy online several times a month.
Data-driven marketing is based on obtaining information about consumers and their behaviour, trends, the sector, and the market in which a company operates. A Data-Driven strategy is based on taking into account what consumers buy on a site and how they navigate to the products they are interested in.
Consumers like to buy online for various reasons. One of the most cited is price. In fact, items offered on the internet are often cheaper than their counterparts in a physical shop. Other aspects are the free and fast delivery. Finally, online shops often offer a wider range of products than physical shops.
What is a data-driven strategy? How can you implement a data-driven marketing strategy for your e-commerce site? What are the benefits of a data-driven marketing strategy for your business?
In our new article, we will explore all these questions together.
What is a Data-Driven strategy?
Data is all the information you can collect about a single customer when they visit one of your digital platforms. Through their various actions on your digital platforms, you can, for example, gather weight, age, eating habits, height, etc.
This data is crucial for fine-tuning your business operations, as it provides a basis for understanding the behavior of your consumers, in terms of their likes, dislikes, and general tastes. You can access valuable information such as: which products they prefer, which banners they click on, how they arrived on your site, and how they learned about your products or services.
Data also includes all the information you can gather about market trends.
With data, you can build an effective marketing strategy for your e-commerce site based on real, verified information. You can adapt your e-commerce strategy by customizing offers and adapting the customer journey if necessary.
By taking all this information into account, you build a “Data-Driven strategy” that will help your sales teams to better target consumers’ needs and offer them exactly what they are looking for.
Ultimately, an effective data-driven strategy will boost your business performance.
What are the benefits of implementing a Data-Driven strategy?
When you opt for a Data-Driven strategy, you increase your business performance by making the right decisions in the short, medium, and long term.
The data collected will allow you to:
- Identify your customer base.
- Have a clear vision of what is happening within your company.
- Understand what is happening in the market in which you operate.
- Make the right decisions at the right time based on accurate and reliable data.
- Improve the customer experience by offering exactly what they are looking for.
- Offer alternative items that your customers might like.
- Improve your business performance.
- Make information flow to the different departments of your company thanks to Dashboards that gather all the data.
- Anticipate the volume of goods to be ordered.
- Make the right decisions about logistics for preparing and sending packages.
How to create a winning data-driven strategy?
Here are some recommendations to make your database strategy a winning one for your business:
1. Set clear and achievable goals
Do you want to attract new customers? Build loyalty with existing customers? Increase your sales? Diversify your assortment? By asking yourself the right questions, you can lay the foundations for achieving your goals.
2. Centralize your data in a CRM
Ideally, use a single data source to keep your data reliable and to give you a holistic view of your customers. Google Analytics 4 is an optimal data source that can easily be coupled with other data sources.
As soon as you collect data on your customers, don’t forget to centralize it in a CRM so that you can analyze your customers’ behavior at any time and track their buying preferences.
3. Create your Personas
We can’t repeat it enough: creating your personas is one of the foundations of your digital strategy. These fictional characters, representative of your customer base, are defined according to their demographics, buying habits, and preferences.
You can create your buyer personas by collecting and analyzing data from various sources and segmenting them.
4. Identify channels
Analyze where your potential customers spend most of their time and where your messages are most likely to be received. Do they check social networks? Do they read their emails? Are they logging on from their smartphone or PC?
This information will help you select the most appropriate channels for your marketing strategy to be effective.
5. Be in the right place at the right time
In addition to knowing who they are and where they are moving to, by creating your buyer personas you can also gather key information on when to reach them. This will allow you to know exactly when to launch your campaigns so that they are seen by the right audience.
6. Send personalized, automated emails
By sending personalized emails to your customers and prospects, you can generate an open rate of up to 82%! Don’t underestimate the power of email as a way to build customer loyalty, reduce cart abandonment and increase revenue.
With a data-driven strategy, you can segment your database and send the right email based on your customers’ needs and interests.
A good way to save time is to switch to email automation.
7. Map the customer journey
Analyze all stages of the sales funnel and track the performance of each stage. This will help you identify what is and isn’t working. By understanding what is not working, you will know which parts of the customer journey you need to optimize better.
8. Identify and analyze your loyal customers
We advise you to segment your customers and select those who generate the most revenue. Analyze their overall behavior with your company. You can then offer the same products or services to other customers who have a similar profile.
9. Analyze your buyer personas continuously
Buyer personas and customer data are not static. They need to be constantly evaluated, taking into account their changing buying habits, online behavior, and also technological advances. This will allow you to adapt your marketing strategy.
When properly used, a Data-Driven strategy opens up a wealth of possibilities for growing your business. Eminence is a digital agency specializing in Data-Driven strategy that can be tailored to your requirements. Our experts will analyze your data and the trends in your sector to bring you the best solutions. Don’t miss out on the opportunity to grow your business and call on the Eminence’s experts
Do you want to effectively implement your data strategy and achieve your business objectives?