Data-driven marketing improves brand communications based on information about consumers. With the right strategy, you can predict customer needs, desires, and future behavior. In turn, you may develop a more personalized approach and drive more sales.
Social media and other pieces of tech (such as the digital cookie) made it possible for brands to collect massive amounts of data to better know their target customers. But as folks become more concerned with online privacy at large, the holistic approach to data-driven marketing is changing. Here are three key trends to watch out for this year.
A balance between privacy and personalization
Brands are notably shifting their data-collecting strategies from understanding customers better to understanding them well enough.
Due to rising global concerns about data privacy, forward-thinking brands are seeking to only obtain from consumers the information they need to serve them. Widespread dissatisfaction with big tech companies, such as Facebook, shows how capturing more data than necessary can sow the seeds of anger and distrust.
If you need to collect sensitive information about a customer, be sure to ask permission and remember to communicate upfront how you plan to use their information.
An emphasis on reliance on behavioral data
Behavioral data captures how customers interact with a product or a service. Common sources of behavioral data include websites, mobile apps, help desks, and chatbots.
This type of data is typically created and stored in the form of an 'event,' meaning an action that was taken by an individual user.
The growth of interest in behavioral data has been sparked by changes in the privacy landscape and a renewed interest in tools Google Analytics or Matomo. Behavioral analytics can optimize conversion, engagement, and retention.
As the trend emerges, marketers are now looking to go deeper, rather than wider, with data collection.
More data tools require better integration
The variety of new data tools available to marketers is growing, with many companies using various platforms and solutions for different business areas. Data tools can measure key metrics, such as website traffic, page views, and click-through rates to show what works best for your brand.
However, with so many data solutions in use, there is a need for better integration to enable the free flow of data between systems and reduce overall complexity.
All these trends show a shift away from collecting as much data as possible to a more strategic and surgical approach. Start by deciding what exactly your brand needs to know about customers. Then, think about what is the best way to gather this information, without being intrusive.
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