It is a universal fact that data is an important tool for marketing. Information is required to understand the market. Information is widely available to marketers and businesses with the development of technology. A data-driven approach enables companies to organize their data with the goal of better serving their customers and consumers.
Data-driven marketing uses data acquired through customer interactions and from third parties to gain a better view of customers’ motivations, preferences, and behaviors. It helps companies optimize their marketing channel performance, and in turn enhance their customer experience, which leads to greater revenue and profits. Big Data and Artificial Intelligence are the two most popular and useful technology that is used to date.
Data helps in understanding consumer behavior and current trends. Businesses use many methods to collect important data. Once the data is collected and properly analyzed, it can be utilized effectively to reach a target market. The customer choices, purchase preferences, shopping habits can be understood using this data. This helps to increase effectiveness and return on investment for businesses. With data being an important key for marketing, not using data could lead to a disaster for upcoming and established businesses.
According to research done by New Vantage Partners, 92% of the companies increased their expenditure on Artificial Intelligence and Big Data. This shows that businesses are going to get competitive. Many organizations consider Artificial Intelligence will bring revolution in organizational data whereas Big Data helps the organizations in analyzing their existing data and in drawing meaningful insights from the same.
Direct Mail is one of the tools in harnessing data offline. It is important to understand the evolution of direct mail and its relationship to digital. Digital advertising looks very similar to direct mail of the early days. It does not require much overhead on paper and printing. It is cheap and there are more options to publish.
There are issues with e-mail and digital advertising. E-mail is heavily direct to consumers. It is data-driven, with high open rates. For digital advertising, there is an illusion of how targeted they are and how much analyses and customer data goes into their proprietary platforms. Digital advertisements have competition for attention and more transparency issues on ad placement. Direct Mail harnesses real, definitive transactional data to optimize lists and identify prospects for acquisition.