Businesses that underestimate the power of consumers learn tough lessons the hard way. Underestimating the vigilantism and authority of modern-day consumer puts corporate survival in question because consumers drive revenues and profitability.
Suppose your target audience isn’t impressed by your products, quality controls, or marketing activities. In that case, how will your company generate revenues and cement its position within the industry? Consumers are a formidable force that can make or break a business. Most new entrants and startups struggle to understand consumer preferences, demands, and needs. These struggles stem from the lack of market research or the inability to find tools to generate and analyze consumer data.
What is consumer data? It’s crucial to understand that every click, like, subscribe, and interaction between consumers and businesses generates vast volumes of data. This data carries valuable insights into consumer preferences, likes and dislikes, engagement points, and lead conversion tactics. Companies that harness consumer data into actionable strategies succeed at boosting marketing engagement and revenue generation.
How does consumer data helps in making impactful marketing strategies? Keep reading to find out!
Designing Personalized Customer Experiences
Modern-day consumers refuse to settle for anything less than a fully personalized customer experience tailored to their preferences and needs. Digitally savvy customers expect companies and e-commerce websites to understand their priorities and offer relevant results. This trend stems from the popularity of personalized experiences provided by leading tech giants and search engines.
From Netflix and Amazon to Google and Facebook, all leading platforms deploy artificial intelligence to identify consumer needs and interests. Netflix and Amazon examine consumer history to offer personalized suggestions that align with their customer’s interests and past behaviors. Businesses can replicate the same strategy by investing in a customer data platform (CDP) to deliver a customer-centric experience.
A data platform will offer valuable and actionable insight into customer data, unlocking the key to satisfactory customer experiences. Marketers can derive rich insights to boost advertising return on investment (ROIs) and convert thousands of leads into paying customers. It all boils down to using data-driven insights to offer a fully personalized end-to-end experience.
Personalization is a burgeoning trend that allows businesses to cultivate a solid competitive edge by capturing consumer loyalty. And investing in a CDP can help your company gather, process, and analyze customer data without setting up a dedicated department. It will streamline market research and power your marketing endeavors with accuracy, precision, and wide-ranging insights into consumer behavior.
Data-Driven Marketing for Higher ROIs
Extracting actionable insights from customer data offers numerous advantages to marketers and entrepreneurs looking to boost engagement with a limited advertising budget. The reliance on customer data enables companies to embrace data-driven marketing to generate higher ROIs and boost lead conversion. How does this work?
Customer data enables marketers and advertisers to curate highly targeted campaigns, playing on crucial touchpoints within the buying journey. Data-driven insights highlight consumer interests, priorities, inclinations, demands, and buying behaviors. Marketers use these insights to design highly targeted advertisements that encourage consumers to buy by presenting personalized product suggestions.
In a nutshell, data-driven marketing revolves around presenting the right customer with the right advertisement at the right time. Suppose your brand targets millennials, and you want to identify the suitable advertising mediums to convert leads into customers. In that case, customer data will offer insight into the advertisements and marketing mediums that millennials respond to and enjoy.
Typically, millennials and Gen Z consumers prefer watching videos to understand product specifications and buying processes. These digitally savvy consumers are hooked by immersive visuals and interactive videos and rely on video promotions to trust businesses. Data-driven marketing ensures higher ROIs by allowing marketers to spend on advertisements that promote user engagement and buying behaviors.
For instance, marketers can evaluate the effectiveness of Facebook Ads and Google Ads to run cost comparisons and determine ROIs. They can abandon platforms and strategies that don’t work and increase spending on advertisements that encourage consumers to shop.
Choosing the Right Marketing Platforms
Consumers select one or two platforms to interact with businesses, promotional posts, and advertisements. This selection is based on the consumer’s interface preferences, ease of connecting with brands, and promotional activities allowed by the platform. Consumers may have an active social media presence with multiple accounts on all platforms, but they are selective about advertisements.
Understanding which platforms your consumers use for interacting with advertisements is of the utmost significance. Customer data offer insight into consumers’ digital marketing and social platforms to interact with businesses and promotions. For instance, some consumers prefer connecting with companies on Facebook and Google My Business (GMB), while others prefer Snapchat or Instagram.
Suppose you’re advertising Gen Z-centric products on Facebook, struggling to generate leads and revenues. In that case, you’ve chosen the wrong platform because Gen Z consumers rarely use Facebook and prefer Instagram to connect with brands. Likewise, millennials use Instagram and Facebook to hunt products, watch advertisements and explore new products.
Gen Y and senior consumers are still adjusting to online buying trends and regard e-commerce platforms with skepticism and mistrust. They prefer in-store buying experiences, but the ongoing social restrictions ushered by the COVID-19 pandemic have forced them to adjust. Understanding the preferred platforms of your target audience is the first step towards designing a personalized and effective marketing experience.
Identifying Engagement-Boosting Content
Do videos encourage your consumers to shop ongoing sales and pre-book an upcoming collection? Or do you find Facebook Live sessions a more effective strategy to introduce new collections and boost revenues?
Consumer data identifies content that fails to stir engagement and gets lost in the tumultuous sea of digital content and social media algorithms. It also highlights content that captures consumer attention and convinces users to invest in your products or services. For instance, customer data will identify the audience engagement and buying behaviors triggered by a video-based ad.
This information will help you curate content that boosts engagement and wins over your target audience.
Back in the day, advertising involved a lot of guesswork, and businesses wasted thousands of dollars on marketing experimentation. Those days are far behind us, for customer data has set the stage for tapping into the minds of consumers.
Marketers no longer have to dedicate hours to market research or customer surveys. Instead, they can use CDP tools to harness data-driven insights into consumer behaviors, buying preferences, and advertisement interactions. Customer data carries the secret to developing brand loyalty and a solid competitive edge.