An introduction to data driven marketing as a general concept.
Data Driven Marketing Book – Intro Video
0:59 – What is data driven marketing?
2:38 – You have your database, the next thing you need is your data sources.
4:09 – Engagement data
This video’s an introduction to data driven marketing as a general concept. I’m Roger Bryan from Enfusen and this video is part of the series in data driven marketing, as I get ready to launch my fifth book and I engage with the audience now to make sure that what we’re putting together in our book is directly related to what you need. The concept of data driven marketing is not completely accepted by everyone yet. That’s mostly because there is an element of creativity in sales and marketing that really, I’m not going to say can never be done through artificial intelligence or data science, but in the near future, probably will not be done.
Now, there are tools that help with this, such as email word clouds and analysis of engagement through content engines, but I want to talk about the general elements and the general purpose of data driven marketing. What is data driven marketing? Data driven marketing can be considered database marketing. It’s the use of customer data, customer contact engagement, and the analytics with a set of variables to create a predictable, dependable outcome from activity. Now that’s kind of a complex answer. The simple answer is data driven marketing is leveraging data to increase the output of marketing campaigns. Every person that’s watching this video that does marketing, does some type of data driven marketing.
They look at analytics, they use that analytical data to make decisions about what they’re going to do in their next campaign. Whether it’s at a macro perspective or what does it cost to generate lead from this source vs. that source, therefore, let’s invest in the one source that provides better results or let’s optimize the source that doesn’t provide as good of results. When you think about data driven marketing driven from that perspective and you understand that you’re already using it, let’s talk about what data driven marketing looks like from a more advanced perspective.
It’s the use of data and algorithms, and predictable outcomes in order to present and predict revenue streams from marketing activities, and then to analyze those activities in order to improve them over time. The core components of this, I’ve mentioned a couple of those. The first thing you need is to use your database. Now, this can be a CRM, if it’s a CRM plus a marketing automation platform, that gets even better. If it goes even further to an engagement with multiple streams of data that can be filtered through each contact in order to increase efficiency, it gets even better.
You have your database, the next thing you need is your data sources. This could be okay, I’m going to buy this list of contacts and I’m going to move them into this database so that I can do something with them, or I have a campaign running that’s generating leads from paid traffic. Organic traffic, or social traffic, they’re coming into a centralized database so that I can start to analyze them and figure out what I’m going to do next with them.
Those data sources can be analytical data, they can be data from an SEM campaign from a social media campaign from a social, I’m sorry from an organic campaign, so you need to bring those all together, and you need to wrangle them and organize them into a single stream of data that can be used in tools. This includes customer data. If you bought this list, or you generated these leads, how are you keeping that data cleansed? How are you advancing the value of that data from organizations like Net Prospects, or Tower Data, that’s telling you more about your contact than you already know. An organization like Tower Data can tell you magazine subscriptions, interest, tax filings, home value, annual revenue, annual income. From B to C, I’m B to B.
You look at someone like Net Prospects, which is now a Bradstreet company that can tell you SIC codes, verify addresses, phone numbers, email addresses, annual revenue of the company employee size, primary services. How can you take an email address and expand upon it so that you have a wider set of data that can be used in your marketing strategy? In your campaigns?
The next piece that you need is engagement data. This is really important in modern marketing. Platforms like Hub Spot, Marketo, Sharp Spring, they all do visitor ID tracking so either by IP address, or through the “cookie-ing” of previous engagement, you can tell how contact in your database that you good data on, is interacting with your marketing now. Are they opening emails, are they clicking on links? Are they visiting your site? Are they visiting important pages, are they visiting social media platforms. By knowing what each contact in your database is doing, you can now predict what they might do next or how to position an offer to them that they’re most likely to consume, but you need that engagement data first.
Let’s say now, you have your database. You have your data sources. You have your customer database, you have expanded that data using data sources in order to have a better picture. You’ve got engagement data, all of that’s being brought into one set stream of data inside one database, what do you do with all that? Where do you really get data driven marketing from all of that? Well, the next thing is that you need to create a strategy, and you need to set goals. You need to define what the outcome is of the activity that you want to implement. Do you want to take X number of contacts through a funnel to get a specific number of net new demo requests, phone calls, or all the way through to customers. You have to define the goal before you can actually define the strategy, the reason for that is you have all your data sitting here and you have your goals sitting here. Now you have to develop a strategy that connects the two. That is the desired outcome. The goal, and now you build the strategy.
When you build the strategy based on available data and projected outcome, now you can systematically design each stage of the process, whether it’s “I’m going to publish this blog post, I’m going to syndicate it on social media, I’m going to re-target it’s visitors in this landing page with this desired outcome. When you outline that, now you can statistically measure from an engagement standpoint what happens. Why do we want to design and measure? Because you can’t create predictability until you have a foundation of a campaign with data points based on the results of your engagement and activity. Once you have that data, you can now analyze what happened to each stage, and then you can predict what you’re going to get as an outcome when you make adjustments. You built the system, you’ve launched the system. You’ve reviewed the data, and now you’re analyzing it for changes.
A lot of this is done in the first few rounds using humans. What you want, is you want an engine like the Enfusen marketing cloud, the adobe marketing cloud, the Salesforce marketing cloud, to learn from those engagements, and then present back to you exactly what you should be doing on the next round, or the round after that. Predictability is possible in almost every element of marketing. It’s not an absolute, it’s not 100% yet, but I will wager to say that it’s actually better than a human.
I would, and I’ve used this analogy quite a few times in videos that you’ve watched, and when I teach, if you set down ten marketers in front of the exact same set of data, each one of them is going to come up with a different go-to marketing strategy. That doesn’t mean that any of them are wrong, but neither does it mean that any of them are right. Now, what if you had a platform that was aggregating data historically from all of the activities that you’ve ever done and looking for opportunities that a human might not see. It’s still going to present that to a human for implementation and give the human the ability to integrate the right hooks and messaging copy imagery, but it’s going to help guide them into use this source of data, market on this channel, expect this outcome, go after this target audience based on persona data, and you’ll have a higher probability of a successful outcome in your activities.
This is an introduction to data driven marketing. The last thing I want to talk about in this introduction is the impact. In most cases, statistically we can prove that once a system is set up and the data is properly optimized and the data’s being used, which takes time, it can take up to a year depending on how complex your systems are. The impact that you’re going to see is typically about an 80% reduction in work. You’re going to do a lot less testing of strategy when the data is telling you exactly what you need to do to go to market. You’re also going to see about 75% reduction in costs. When you reduce work, you reduce costs, because you’re going to be able to reduce spend as well. You’re going to be able to change and adjust your strategies based on data to go exactly after the right person with the right message at the exact right time.
It’s going to eliminate a ton of work and a ton of cost. In the end, it’s also going to increase sales, typically 7% from 3% to 7% of engaged prospects. That’s more than doubling the output of your current sales activities. We reduce the amount of work that we do. We’ve reduced the amount of money that needs to be spent at implementation, and we more than double the output, when you put all those together, you’re looking at between a ten and a forty times ROI on the cost of implemented data driven marketing after one year.
That’s a huge ROI if you do all of these things correctly. That is the impact of data driven marketing. The purpose of this book is to walk you through the 12 steps of implementing data driven marketing in your organization. Giving you access to the right tools, the right data sources, the right processes, the right algorithms, everything that you need to be successful on your own implementing this, so that you don’t have to pay Adobe $250,000 a year to do this inside of your business. This is an introduction to data driven marketing for the upcoming book by myself, Roger Bryan on data driven marketing. Please check out the other videos, as we walk through each chapter of this book, and we help guide you through the implementation of data driven marketing in your organization. Thank you.