Data driven marketing in E-Commerce
What is data-driven marketing?
Earlier considered to be an innovative approach, data-driven marketing is now an integral part of the marketing functions of any brand. Simply put, it refers to understanding data, analyzing it to better target your marketing efforts. This data can be a result of researches or studies through customer interactions or engagements. While this sounds simple enough, the concept of big data is still relatively new and is only a few years old. The idea of using data to improve value and services was realized once the validity of using this method was proven.
Some of the benefits of data-driven marketing are that it allows you to send the right message to the right customer at the right time and through the right channel. This also helps in reducing cost on trial and error methods, improving value for customers.
Data-driven marketing is based on facts and not on assumptions. It helps predict trends and tailor marketing activities accordingly. It also helps boost sales and increases ROI. For all these reasons, it is clear that data-driven marketing is the way ahead.
Applications in e-commerce
E-commerce companies have a wealth of information and data from customers that traditional brick and mortar shops do not have. They have access to what products people search, how much time they spend on each product, what is their buying behavior and pattern, what time of the day do they usually shop and so on and so forth. This pool of data has opened major avenues for e-commerce companies to leverage upon and use for their marketing.
Some of the fundamentals of using data-driven marketing for e-commerce are as follows:
- Creating a consumer persona – With the abundance of data available, creating a buyer’s persona is the first step to reaching out to the customer. This persona is a fictitious image of your consumer and will include their demographics, psychographics, behavioral characteristics, and their order journey.
- This consumer persona will now help in deciding what marketing tool to use for that particular person. For example, it will help you decide whether you must send an email announcing an offer at 10 in the morning or at night. It also tells you whether you must post an ad on Facebook or YouTube.
- The last step is to monitor and evaluate whether your buyer personas and the information you collected based on them were fruitful in getting the desired results. Another thing to do is to constantly keep updating your data as consumers are not stagnant beings.
Thus are the ways in which data-driven marketing is used in e-commerce. While these are some fundamental steps, there are plenty of analytical methods used in data-driven marketing to curate consumer insights. Customer data, purchase trends, or behavioral analytics form the major chunk of data-driven marketing.
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