Many of you are sophisticated in your use of Digital Marketing, and plan to continue investing in this area. But if you want a clear competitive advantage, try shifting your focus to Data Marketing.
Being a “Digital” Marketer (i.e., proficient in email, SEO, SEM, online display, content, nurturing, social, etc.) isn’t enough in the modern competitive landscape. Today’s leading marketers and marketing departments are evolving into “Data Marketers.” In other words, you should be proficient in the use of first party buyer data and third party data to build a better understanding of your target buyers.
Two factors drive this evolution to “Data Marketing.” The first is that Digital Marketing is becoming less of a competitive advantage and differentiator. A surplus of skilled digital marketers has glutted the workforce, and nearly all successful businesses have already adopted digital marketing techniques.
The second factor is that the well-known “Big Data” phenomenon is radically changing the competitive landscape for marketers in the following ways:
Below are some examples of how Data Marketing can create competitive advantage:
A major, U.S.-based global airline intends to create a 360-degree view of its customers. It now uses a “tag management systems” vendor to collect and unify buyer data from its main website, the rewards website, a “hotel offers” website, and its mobile application to get a complete view of customer buying patterns. Now it can customize offers and digital experiences accordingly.
For example, customers who fly frequently to a particular destination are offered fares in conjunction with a hotel that is running a special. Or, depending on the time of booking and travel, the airline may modify its rewards program to offer customers a reduced rate on business class fares.
The airline also seeks to collect data from customers at airport kiosks and (in accordance with international privacy regulations) from its inflight Wi-Fi system.
Consider another example: A global consumer electronics leader seeks to optimize its website conversion rates. To do this, its marketing technology team “syndicates” third party data. Syndication is the real-time sharing of data between its digital marketing vendor solutions. In this case, the company takes a real-time feed of data collected by its web analytics provider (traditionally only used for post-facto batch reporting and analysis) and provides data about the site visitor’s session to its website chat tool.
So the website chat/IM window now receives a feed telling it what pages a buyer has visited in the current website session. Therefore, when the chat window pops up, it no longer says, “Hi, can I help you?” Instead, it now says, “Hi, I see you’ve been looking at our laptops. Can I help you with any specific questions about them?” This has resulted in a 70 percent increase in visitor engagement with the chat window. It has also dramatically increased visitor buy-through rates.
Consider this third example of how Data Marketing lets companies seize competitive advantage. A major telecommunications company had millions of CRM records with offline information about prospects in their database – physical addresses and demographic data – but no online data, such as email addresses. The company was able to augment its traditional direct (physical) mail campaign for these prospects with targeted online display advertising, through a marketing technology vendor. The cost of conversion decreased significantly for consumers that received direct mail and saw targeted online display advertising.
In today’s competitive landscape, all marketers must be fluent in Digital Marketing; it is a baseline for success in an evolving consumer business and technology environment. But as a Data Marketer, you can achieve a higher ROI and better align with your business goals because you start with the premise that cross-channel buyer data is now available and can be leveraged to create:
Becoming a Data Marketer will enable you to lead your company to the competitive advantage you seek.
This article was originally featured on MP Daily Fix and co-authored by Des Cahill, who is a Senior Data Marketing Strategist at Crimson Marketing. He is an expert in B2B digital marketing, data marketing and tag management systems. Follow Des on Twitter at descahill.
Glenn Gow is an expert in marketing performance, Coach, Board Advisor, Author, Speaker, Podcast Host and Founder & Advisor of Crimson Marketing. Follow me on Twitter, LinkedIn, Google+. To get a free copy of Crimson’s One-Page Marketing Metrics Funnel, visit here.