Data Driven Marketing and how it can improve your Marketing ROI

There is an old business saying “You can’t manage what you can’t measure”. This stands just as true today as ever.

Think about it: It’s pretty hard to determine if a strategy is successful or not if there are no defined metrics or Key Performance Indicators (KPIs).  With today’s modern customer demanding personalized and relevant experiences, the so-called “spray and pray” tactic is no longer applicable.

In this article, we will highlight several data driven marketing strategies that will help your business increase its return-on-investment (ROI) when it comes to marketing and in doing so lay a foundation for a data driven marketing strategy.

What’s Data Driven Marketing

Data Driven Marketing is a marketing principle that analyzes data from customer interactions, campaigns,  third parties, etc. with the goal of gaining insights into the behaviors and preferences of the customer. This marketing tactic aims at enhancing the customer experience by learning what makes them tick and working it into your marketing strategy. It can also be leveraged to create automated campaigns which allow marketers to focus their time on the creative side of the business. Data driven marketing is one of the most transformational and beneficial marketing occurrences to appear in a long time. Ultimately, data driven marketing aims to optimize companies’ marketing efforts and increase revenue.

Data Driven Marketing

Why it should concern you

There are many benefits to implementing a data driven marketing strategy. For one, ad spend and marketing messages are optimized based on facts and they will be shown only to the appropriate targets for the marketing campaign.

While a one-size fits all marketing approach might work for some big brands, those are outliers and it is more beneficial for your business to make your marketing efforts more granular so that it resonates better with your different clientele. The younger generation especially appreciates personalized marketing content. More than half of millennial consumers (age 18 to 34) are less interested in a brand’s products and services if its content isn’t relevant to them.

Your customers have preferences that guide their thinking and behavior. Marketers like yourself are able to guide them. Having and sharing content and marketing tailored to your specific customer segments will build a lasting bond between your clients and your brand. As a business it is imperative that you generate data and use it to your advantage by applying it to your future marketing campaigns.

Collect & Segment Data points

The collection of data might seem like the main contributor in getting to know your audience. But that data also needs to be representative of your customers. You need to know your clientele inside and out.

Once  established, you can trust your gathered data and proceed to managing said data. The data will be ever-changing, meaning you need to keep an eye on it throughout and develop a short term plan, as well as a long-term strategy.

Not every member of your target audience holds equal value to you. Different customer groups exist within your wider target audience, and it’s up to you to define those segments. There are lots of different ways to divide your audience. The most common practice is to divide your customers by demographic. However, you can also divide them by other psychographic factors such as values or interests.

It can also be useful to prioritize segments. Segmentation will allow you to target each customer group at a specific time with their specifically preferred content. Segmenting your audience is particularly important with email marketing, social media marketing, and of course, retargeting, which we’ll dive into next.


You may already be using effective forms of online marketing such as content marketing, paid search, or social media ads. However, retargeting is an important complementary strategy to add to these. Retargeting, also known as remarketing, is a form of online advertising. It helps you keep your brand in front of potential customers after they left your website. The majority of websites only convert 2% of web traffic on their first visit. Using retargeting, you can nurture your previously bounced traffic into conversions. This stat will drive the point home: retargeting ads are 76% more likely to be clicked on than a regular old display ad.

Data Driven Marketing
Image: Source

So how do we go ahead and retarget potential customers, then? A good initial step is to use copy that combats their initial sales objections.

The implementation of cookies allows businesses to gain an insight into their traffic’s behavior and preferences. Remember, these people already were on your website, they just did not convert. Now you can use a retargeting ad to convince them of your brand and get rid of their final hesitations.

If you’re not completely certain about what objections your potential clients might have, get in touch with your sales colleagues. Since they are “on the frontlines”, they will probably have invaluable insights into the concerns that prospective customers voice. Here is another way to determine pain points that your customers believe they have with your product or service- check out reviews that they gave about your business online.

While retargeting campaigns have huge upsides, setting them up can be a challenge which is why it makes sense to get in touch with an expert

Fear of missing out

Another tactic you can use to capture the valuable attention of prospective clients is to use discounts and limited time offers. Comparison shopping has changed dramatically since the advent of the internet. Now shoppers can compare prices in rapid succession in order to find the best deal. This can be mitigated by sweetening the deal with a limited time offer or a discount. These subtle techniques trigger the prospect’s fear of missing out (FOMO) and reignite their interest in you and your services.


Data driven marketing is proven to increase clicks as well as increase conversions, compared to traditional marketing. From the initial collection of data via cookies, to the retargeting phase, be sure to follow through with this transformational marketing strategy. It will be hugely beneficial for your business.

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Michael Wirth
Latest posts by Michael Wirth (see all)

1 thought on “Data Driven Marketing and how it can improve your Marketing ROI”

  1. Hey Michael/Anthony,

    The post showed up just when I was thinking of getting all nerdy with data and analytics. Been obsessed with it for a while now.

    Anthony and I were just having this conversation about analytics as well.

    Data is actually a gift — the way we can collect, use, and stay informed — for marketers and businesses.

    Unfortunately, not many use it as much as it should be, right?

    An eye out for data, segmenting it appropriately, and making decisions — ooh, that’s the good stuff.

    Timely post. Thank you for making me dig my head back into those analytics courses again ?


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