Data-driven marketing is a top priority of marketers and businesses because it works exceptionally well. Businesses that use data-driven marketing for personalization see up to 8x ROI. This is a reason why 40 percent of businesses reported that they plan to increase data-driven marketing.
So why does data-driven marketing work so well? It improves user experience and allows for the personalization of marketing content and offers. When you have all the data available to you, it significantly improves decision-making. You know what marketing channels to use, when to use them, and what buyer persona to target.
The way you collect, analyze, and use data is the key to data-driven marketing. The amount of data generated in the world is enormous. It is estimated that by 2025, we will be generating 463 exabytes of data each day. To put it into perspective, that is 212+ DVDs per day.
But all this data is useless if not analyzed and used for decision-making. And that’s where data-driven marketing steps in. When you use data to create, optimize, and replicate marketing campaigns, you'll see enormous growth, and your ROI will skyrocket.
How can you use data-driven marketing for your brand?
Check out the following data-driven marketing examples to get ideas and see how it can help you take marketing to the next level.
1. DIRECTV Targeted Movers and Increased Conversion Rate
One of the best data-driven marketing examples is by DIRECTV, which used data to target movers and increased its conversion rate by double digits. The company used data to find out that as many as 45 million people move every year in the U.S. When consumers move, 60 percent change service providers and 80 percent are more likely to try new products and services:
DIRECTV partnered with USPS to get moving data. It then customized its website’s homepage and made it extremely personalized for recent movers. It offered new movers $10 off for 12 months. Here is how it looked:
This homepage variation was shown to recent movers based on USPS data. The experience was consistent across all channels and it worked exceptionally well for DIRECTV for several reasons: personalized landing page, proper segmentation, and cross-channel experience.
The homepage also explicitly mentioned the word “movers,” which allowed for instant connection with the visitors. At the end of the day, DIRECTV smartly used the right data to target potential customers.
Using data to fill the market and offer your ideal customers a powerful yet personalized solution to their biggest problem works very well. Your audience values nothing more than personalization.
2. Grubhub Links Food with Political Affiliation
Grubhub is a food delivery service that has partnered with restaurants all over the U.S. It has tons of data on consumer eating habits and patterns. In order to better understand its users and expand its business, Grubhub surveyed users to see how their political affiliation is linked to their food choices.
Grubhub partnered with Time magazine and created a quiz that was sent to Grubhub users. It asked them to select a dish from pairs of dishes. Each dish in a pair was linked to a specific political affiliation:
The data was analyzed to find what type of foods democratic vs. republican supporters prefer. The study was helpful for both Grubhub and political parties. Grubhub can use this data in marketing, business partnerships with publishers, and more.
Every business generates data and has tons of behavioral data about its customers. The important thing is how you use it to draw inferences and make your data useful. Don’t hesitate to conduct surveys and quizzes to collect specific data from your customers. If you are missing an important piece of information, reach out to your customers and ask them.
3. Very Used Demographic Data for Personalization
Very, a retail store, partnered with Shop Direct to improve personalization across its online store. It launched a personalized homepage that was tweaked based on visitor interest, demographic, and historical data.
Here is the homepage that you'll see if you visit Very from a rainy and cold location:
Each visitor was served a different homepage and the retailer was able to generate and serve more than 1.2 million variations of its website. The customization and variations weren’t limited to the homepage, but the homepage was more in-depth. For example, the product listing, categories, sidebar location, etc., were all tweaked based on demographic data.
A team of data scientists developed an algorithm over two years that predicts visitor behavior. They developed more than 200 million affinity scores that rank offers for each customer.
This data-driven personalization approach helped Very increase its conversion rate significantly and improved revenue by £5 million in a single year.
Invest in data analysis. It pays off – sooner or later. It took Very almost two years to develop the algorithm, but once it was done, everything was automated. The brand waited patiently for the right time and trusted its data scientists and partnering brand. That’s an important piece of the puzzle.
4. Zillow Used Data for Content Creation
Zillow is a leading real estate marketplace that generates heaps of data. But it doesn’t just let this data sit on its servers; rather, it uses it for content marketing. It uses data to create content that the audience is more likely to engage with.
Zillow analyzed top listings for common words and patterns. It determined the most common words used in the most successful listings and then created a blog post to share this information. The data, in this case, isn’t just helping the brand, it is helping its users too.
Use data to create content that is more appealing and useful. You can use data to identify topics that your audience is more likely to engage with. This data-driven marketing approach to content creation works best if you have access to user-generated content or you are running a huge marketplace.
5. Mint Creates Trending Data-Drive Content Pieces
Mint is a budget tracker app that has a lot of finance and budgeting data. The brand uses data smartly to create infographics that are based on trending topics. It doesn’t just create random infographics; rather, it targets trending stories in a well-timed manner.
The infographic targets the gender wage gap and uses its data in the infographic related to women’s investment. The infographic is based on a trending global challenge and is appealing to a wide range of audiences.
It is a good idea to use trending stories and look at Google Trends to see how you can merge and use your data to come up with an interesting piece of content for your audience.
Data-driven marketing won’t work without a robust strategy. Set clear goals, have a plan, and start analyzing the data you have. You don’t have to go anywhere else for data; you already have it. All brands have data, but perhaps you don’t know how to use it. First Page Strategy can help you gather your data, make sense of it, and create a strong marketing plan. Contact us to find out more.