Data is the most valuable marketing asset for your brand. You can create data-driven marketing campaigns that are more effective than their counterparts. Brands that use data-driven personalization deliver up to 8x ROI on marketing spend. This is a reason why 64 percent of marketing executives are of the view that data-driven marketing is crucial in the economy, and 72 percent of leading marketers are more likely to invest in quality or quantity improvement of the first-party data they capture.
The more data your brand has, the better.
But data itself isn’t of much value. How you use available data in marketing campaigns and personalization is what matters. Brands and marketers have access to lots and lots of data that is generated on a daily basis, especially if you operate a SaaS or tech brand. This includes both internal and public data. It all comes down to how effectively you analyze data and use it in marketing.
Here are the best data-driven marketing techniques that are ideal for SaaS companies:
1. Personalized Marketing
Consumers prefer personalization. It makes sense; nobody likes seeing irrelevant ads. According to Accenture, 83 percent of people are willing to share personal information and data for a more personalized marketing experience. In fact, 63 percent of consumers are found to be extremely annoyed by the way brands send them generic marketing messages without any customization.
Customized content and personalized marketing collateral require data. It goes beyond sending emails with your subscriber’s first name in the subject line. Personalization is entirely based on data because data helps you better understand your audience, their preferences, and interests.
Amazon’s product recommendation is one of the best examples of data-driven marketing techniques. It doesn’t just show you random products. The recommendation system is highly sophisticated and has significantly increased sales ever since its inception.
Here is an example:
The recommendations are based on user behavior, past searches, and several other variables. And this personalization technique is working extremely well for Amazon. As much as 35 percent of Amazon’s revenue is generated by its recommendation engine.
There are several ways SaaS and tech brands can create data-driven marketing techniques and strategies:
Use data to continuously refine your buyer personas. Accurate buyer personas help you develop highly targeted and personalized marketing campaigns. For example, you'll know what type of content to create, where to publish it, and what marketing message to use to attract your ideal customers.
Track visitor and buyer behavior on your website and use it for personalization across all channels. Usually, tech and SaaS companies collect and use purchase data for marketing purposes and ignore visitor interaction with the website. Using an appropriate behavioral analytic tool will help you improve personalization. For example, heatmaps and click maps will show you what type of content your target audience loves interacting with.
Use data to anticipate buying patterns and recommend personalized products. For example, promote relevant cross-sell and upsell products based on customer history, preferences, and interaction with your brand – and not just based on product feed.
2. Cross-Channel Marketing
It is estimated that 98 percent of Americans switch between devices in a single day. This means your ideal customers can connect with your brand via multiple channels in the same day. And this is why having a data-driven cross-channel marketing strategy should be your number one priority.
Cross-channel marketing (also known as omnichannel marketing) refers to promoting the same marketing messages across multiple channels, e.g., website, social media, display ads, etc. The idea is to ensure that your target audience receives the same marketing message and UX across all the marketing channels and touchpoints:
For example, a person watches a YouTube video review of your software, then follows you on Twitter, and buys your software via a third-party platform (e.g., G2).
Cross-channel marketing requires data (a lot of it) to track users across channels and to serve them consistent messages on all the channels. You need to track each interaction with your brand across all the channels and then serve each user the right marketing message at the right channel based on the last user interaction.
This type of data-driven cross-channel marketing campaign for SaaS delivers exceptionally well. The purchase rate of campaigns that use at least three channels is found to be 287 percent higher than campaigns using a single channel:
Cross-channel marketing involves both marketing messages and user experience that is delivered across multiple channels. You must ensure that users get consistent experience whether they're on your website, blog, social media, YouTube channel, or a micro-blogging platform. This is what 90 percent of customers expect from brands they follow:
3. Inclusive Marketing
One of the best data-driven marketing strategies for SaaS and tech brands is an inclusive marketing approach that is focused on diverse communities — especially those with special needs and/or disabilities. You must ensure that your brand, product, and website are accessible to everyone irrespective of their background, demographic, or diversity.
This is marketing that includes everyone.
Statistics show that 26 percent of adults in the U.S. have some kind of disability and 15 percent of the world’s population have some kind of disability. This means your website, brand, and/or products aren’t accessible to 15 percent of people if you don’t have an inclusive marketing strategy.
The first step is making your website accessible according to W3C standards. Your website must be accessible to everyone, including those with any kind of disability. You can use an accessibility tool to make sure everyone can access your website and products.
Second, you need to make your content and marketing collateral inclusive. This requires tracking right from your website. For example, a user who accessed your website via an accessibility tool must be targeted with the appropriate ad, products, and marketing messages.
It won’t make sense to target color-blind people with a display ad that is hard for them to read.
You can create an inclusive marketing strategy with the help of data. Start segmenting users, customers, and website visitors based on how they interact with your website across different touchpoints. This will help you create targeted marketing campaigns that will deliver exceptionally well.
Data-driven growth marketing strategies outperform their counterparts by a big margin. The amount of data that is generated on a daily basis is increasing exponentially. All marketing campaigns will be entirely data-driven in the near future.
Brands that invest in data quality will do better in the long run. It isn’t about the data you collect; rather, it is all about the quality of data you collect and how effectively you analyze it.
Before you create a data-driven marketing strategy for your tech brand, you need to develop a data management strategy that should focus on data collection, data refining, analysis, and reporting. Once you have data in an easy-to-understand report form, you can use it for marketing.