Data-Driven Decision Making- The Marketing Futurity

Big Data is everywhere. The value of data has enhanced astronomically in recent years. Evidently, data is not just mere facts or numbers. It drives businesses into advanced data-driven decision-making. According to research conducted by PwC, organizations that make proper use of data make three times more efficient decisions leading to better and improved business. 

Gone are the days when decision-makers took vital decisions based on their instincts or advice. Undoubtedly, we live in an era where business leaders are progressive and never miss a chance to efficiently use the latest advanced technologies. And, the decision-makers who have effectively put the data into action thrive in the industry. In this blog, our experts at Powermetrics have decided to share their insights on data-driven decision-making (DDDM). In brief, we are sure our insights will surely help businesses thrive in this digital era. So, read on.

What is data-driven decision making?

The process of decision-making based on the crucial data that allows businesses to become better and informed decision-makers is known as data-driven decision-making (DDDM). This progressive approach involves the adoption of numerous verticals in an organization. Again, it includes evoking creative thinking to generate curiosity, developing data skills to practice and apply it, and community support. Accordingly, these verticals encourage creating a culture where everyone generates and puts the insights from the data into action.

Why is data-driven decision making important in marketing?

Marketing is indeed one of the major verticals in any business. Earlier, it was rare to use data-based insights in developing marketing strategies. But eventually, data analysis has become a crucial parameter to be considered before making any decisions for the marketing campaigns.

Organizations now benefit from accessing a vast amount of information to enhance their customer-brand engagement. Similarly, marketing campaigns become more focused on ensuring the best brand experience to the customers. And marketing teams can analyze various ways to drive better brand engagements and increased ROI.

Benefits of the Data-Driven Decision Making with business analytics

There are numerous reasons that data-driven decision making can bring for businesses of this era:

Sustainable growth

Data brings decisions that aid in sustained business growth. In fact, decision-makers tend to make better-informed decisions based on data. And have become more reluctant to trust their instincts or adhere to theories blindly. Businesses have a clear understanding of their customers’ products and services through the right data. 

Better business opportunities

More accessible and better visual data allows decision-makers to identify newer opportunities. Decision-makers can naturally see through every business operation and make improvements to enhance better business connections.  Subsequently, data-enabled social media marketing helps businesses visualize their social customers’ emerging trends, topics, and patterns.

Improved communication

When you have every relevant data on the table, it becomes easy to communicate your ideas across the board. It means improved communication and easy collaboration across all departments. Again data-driven social media marketing helps you analyse and define the sentiments of your audiences. Furthermore, it offers you a better insight into creating better strategies to enhance customer engagement and responsiveness.

Resilience in the business

Did you know that the business backed by data remains resilient in volatile times? With data, you stay in the match with all the emerging trends. And implement insights to build a lasting empire. Likewise, data-driven marketing analyzes the emerging trends and the various ways to avoid a brand crisis. For example, through social media analytics, a brewing giant could discover that one product had negative sentiments of over 25%. Luckily, this analysis could help them act on time. Henceforth, they could control the crisis.

Steps of data-driven decision making in marketing

Implementing data-driven decisions into your marketing strategies is not an easy feat. But by following a step-by-step methodology (as given below), this complex implementation certainly looks feasible.

Step 1- Define your objectives.

Understand your marketing objectives. Is it increasing website traffic or having better sales? After all, having a clear understanding of the objectives and goals will help you decide the KPIs for better decision-making.

Step 2- Identify the type of data required.

Depending on your goal and KPIs established, you will understand the type of data you would need to collect.

Step 3 – Collect and visualize the data.

Firstly, get the data sources and start collecting the data. Next, prepare and prioritize the data for better insights. Using a data studio dashboard here will help you visualize the collected data well. More details on the role of dashboards for data-driven decisions in marketing are discussed below.

Step 4- Fill in the gaps of existing data.

Undoubtedly, inaccurate and incomplete data will prove inefficient in providing the right marketing decisions. So you must have a dedicated data science team in your organisation. They would help identify any gap in the current and existing data.

Step 5- Have concise data quality policies.

It is essential to have precise data quality policies to mitigate any risks. These policies will ensure uniformity and best data practices across all your departments. Additionally, it will also avoid your entire process to move away from the end goal.

Challenges of Data-Driven Marketing

As said earlier, data-driven decision-making in marketing is quite complex. These complexities arise due to the following challenges:

Inability to find high-quality data

Your data science teams must ensure that the data collected are accurate, complete and representative. Unable to do so will lead to poor and ineffective decisions.

Not being transparent

Your customers need to know that you use their data for better business prospects. This transparency will enhance trust in your brand. Alternatively, customers must back out from giving their data to any business.

Lack of data skills

If your marketing team cannot understand the entire data-driven strategizing process, it can hinder your operations. Henceforth, it is crucial to train the concerned department aptly. It would help them use this vast data for the company’s betterment..

Unable to extract the right insights

Collecting a large amount of data without any positive impact is pointless. It clearly shows that your marketing strategy shows lack good policies. Nevertheless, this problem can be easily tackled with proper data skills and the right software.

Role of Dashboards for Data-driven decisions in marketing

Dashboards are an innovative system that enables us to visualize information in better digestible formats. For example, our Google dashboard by powermetrics helps you track business-critical metrics straight from your website in real-time. In other words, having all the vital numbers right in front of you on a single screen! That’s how the marketing reporting dashboard helps you in becoming better decision-makers. It allows you to visualize the data to dig deeper into the crucial insights. Moreover, your marketing department can quickly know whether their investments are reaping benefits or not. With all the data in one place, they track, drill-down and tackle any problems effortlessly. Lastly, they can also follow the marketing costs and calculate your profits precisely.

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