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Data-driven marketing is the norm now, with companies basing their entire strategies on it. That’s because consumers are generating a wealth of data that makes it easier for companies to segment and target them. But this wave of data-driven marketing stems from advanced analytics capabilities that developed over decades.
Specifically, data-driven marketing skyrocketed after the advent of artificial intelligence in the analytics industry. For the first time, data scientists can analyze large data sets with AI helping them identify unique trends. After all, tech companies rely on predicting future trends, and accuracy is essential in this regard.
Learning how artificial intelligence complements the techniques for data-driven marketing is essential for business success today. That’s why we will explore the relationship between big data analytics and data-driven marketing strategy. Crucially, we explore using data analytics to find and capitalize on consumer trends to stay ahead of the competition.
But first, let’s look at why big data analytics is becoming increasingly important in the digital space. So let’s dive in.
Why is Big Data Analytics on the Rise?
First things first, why is it called ‘Big Data‘?
The answer is quite simple – because of the volume. There’s more data in the digital space from e-commerce to social media and user-generated content than ever before. That makes data significant, and the analysis of that much data requires more than human intelligence.
Specifically, data scientists harness artificial intelligence to analyze large amounts of data and find useful insights. As AI becomes better and more sophisticated, its use becomes widespread for predicting future trends. This part of data analytics is predictive analytics since it uses historical data to predict future patterns.
These predictive techniques fall under Big Data analytics because it all stems from data gathered through multiple sources. Big Data analytics is so widely practiced today that it helps organizations make better business decisions. As a result, businesses can meet consumer needs by customizing offerings according to what the data predicts.
This is not to say that all insights are a hundred percent accurate. However, data-based marketing has tangibly better results than conventional marketing. That’s because it relies on data generated from users and predicts future needs before they arise. Consequently, companies can organize resources and make pliable strategies to suit the needs of their target market.
The Relation between Data-Driven Marketing & Big Data Analytics
The best way to understand data-driven marketing and how big data complements it is through modern marketing approaches. Most organizations rely on measuring KPIs from online marketing efforts and making sense of the results to determine the next move.
For example, advanced analytics platforms such as Google Analytics track consumer activity, right down to the number of clicks. Such features show companies how significant their marketing efforts are according to crucial KPIs such as ROI and CAC.
As such, there’s a lot less trial and error in modern marketing campaigns. Instead, businesses know exactly who to target, when and where to target them to get the desired results. That’s because big data generated by users and their activities online paves the way for data-driven decisions.
And with artificial intelligence in their corner, businesses can carry out all the data analysis in a heartbeat. Not to mention, companies can make entire strategies based on data-driven marketing trends. These trends serve as the cornerstone of modern marketing.
In the past, marketers spent countless hours and resources trying to anticipate the needs of consumers. But with the digitization of user activities, it’s easier to collect, measure, and analyze consumer behavior. This is the most significant benefit of big data analytics and why corporations are scrambling to equip themselves with analytics infrastructure.
This is also the reason why we see companies generating more value than ever before in history. Alphabet, Google’s parent company, recently became the fourth U.S. company to reach $1 trillion in market cap. That’s because tech companies like Alphabet, Apple, Amazon, and Microsoft have unlocked the secret of applying data analytics for business success.
How to Stay Updated with Data-Driven Marketing Trends?
If more businesses are to emulate the ‘Trillion-dollar companies‘ model, they need to stay updated with market trends. The best way to do that is to use big data analytics for data-based marketing. For that, the first step is to set up analytics infrastructure within the firm. Secondly, organizations need to develop entire analytics strategies to maximize results. The key challenge in data analytics is not conducting the analysis but interpreting it for actionable insights.
The implementation stage is where firms need a strategy to apply insights and understand marketing trends. Once AI systems provide insights, firms have to match insights with on-ground information. That’s because trends change like the wind, and companies need to stay on their toes to adapt accordingly.
Data-Driven Marketing Trends in 2020
Now let’s look at some of the data-driven digital marketing trends that are most important in 2020.
1. Predictive Analytics
The most critical data-driven marketing trend is the adoption of predictive analytics for customer acquisition and retention. Organizations can’t afford to lose out on precious time and resources testing out what works and what doesn’t. That’s why they utilize artificial intelligence and machine learning to gauge the performance of marketing efforts.
Thanks to advanced analytics systems, like the one Lucrative.ai offers, companies conduct predictive analytics and ad optimization that results in higher ROI.
2. Data-Driven SEO
There’s no more room for blind SEO anymore. If you want to get your website ranking high, there needs to be a data-driven approach behind it. SEO requires a systematic approach that is rooted in what consumers are looking for. Google is continually working on improving the user experience. This means that only the content that fulfills user needs would rank well.
The first step to data-driven SEO is to do proper keyword research using tools that give consumer insights. This includes Keyword Everywhere, Ubersuggest, Buzzsumo, and others like them. The second step is to generate plenty of backlinks and increasing domain scores. If you’re interested in improving SEO, check this out.
3. Leveraging Agile Marketing
Agile marketing stems from social media and the spontaneous opportunities it presents. There are countless examples of brands using social media trends to leverage more audience engagement. The feud between Burger King and McDonald’s is a classic example of one brand capitalizing on the tweets, posts, and billboards of the other brand to increase its engagement.
However, to perform agile marketing effectively, you need to be on the lookout for social media trends. Social listening is one of the trends that are on the rise due to agile marketing, which is a data-driven marketing trend. Brands even use AI and machine learning to improve the user experience, which can get noticed on social media. For example, when Amazon introduced its cashless Amazon Go stores, people flooded social media with tweets and posts.
4. Multiple Channel Marketing
Also known as Omnichannel marketing, is on the rise in 2020 as well. Even though users are accustomed to interacting with brands across multiple channels, it’s different with data-driven marketing. Businesses use data analytics to understand marketing attribution – read up on it here – to identify the best marketing channel.
Thanks to big data analytics, organizations can pinpoint the best performing content on the best performing channels. This leads to more traffic, more significant leads, and a better experience for users. There’s no wonder omnichannel marketing is skyrocketing as companies attain data-driven insights.
5. Personalization in Messaging
Finally, interaction with users online is becoming more and more personalized. Imagine knowing what each of your users prefers in terms of the content they see and the ad graphics. Thanks to advanced analytics and multivariate testing, businesses can do just that.
As a result, users see ads customized to fit their needs and preferences. From social media feeds to ads users see during browsing, each ad is carefully designed and targeted to get the most out of each impression.