In today's marketing landscape, deriving value from data and having a sound data strategy is critical. While data has become the cornerstone of marketers' efforts to influence customer behaviour, relying solely on data in isolation can be unproductive and yield unsatisfactory results. Marketers may draw inaccurate conclusions about their customers, highlighting the importance of leveraging data effectively and strategically.
That’s because human beings aren’t always rational in their behaviour, says Shravya Kaparthi, Strategy & Decision Sciences lead at RAPP.
In a blog for the ClickZ website, she writes: “People are complex, and not every action can be boiled down to a few simple impulses. That said, there are some common themes when it comes to predicting human behaviour. The problem is that they’re not readily apparent in the data, because they don’t come out of logical thinking.”
She gives the impulse purchase as a good example of a behaviour that we’re all guilty of, that is “rarely logical” and therefore at odds with data-driven marketing.
So, how can marketers make better use of their data?
1. Start with the human
Instead of letting data lead your decision making and strategy, start with the human at the heart of the transaction.
Research conducted by Gallup revealed that brands which consider behavioural economics – where the insights of psychology and economics are combined – enjoy 85% more sales growth and 25% higher gross margins than their competitors who don’t consider the emotional element attached to a purchasing decision.
When evaluating your data assets, it's crucial to consider the data value and its relevance to your customer data. Continuously asking yourself if the insights gained from your data are truly representative of how people behave can help you avoid drawing incorrect conclusions. By prioritising the accuracy and relevance of your data, you can make informed decisions and optimise your data strategy for better results.
2. Give it some context
Wired magazine’s medical examination analogy is a particularly effective way of explaining the importance of having a complete picture before making decisions:
“Just as a doctor diagnosing a patient with diabetes based on body temperature alone is incorrect, so is making business decisions derived from data out of context,” writes contributor Alissa Lorentz.
“A doctor needs to know about the patient’s age, lifestyle, diet, weight, family history, and more in order to make a probable and guarded diagnosis and prognosis. Contextualisation is crucial in transforming senseless data into real information – information that can be used as actionable insights that enable intelligent corporate decision-making.”
3. Continuously optimise your efforts
To consistently drive positive outcomes in buyer behaviour, it's crucial to leverage raw data and extract business value from it through continuous optimisation. However, data management is also critical in ensuring that the insights gained from raw data can be effectively translated into monetary value. Therefore, continuous optimisation not only involves refining and optimizing strategies based on data insights, but also effective data management practices that support the extraction of business value. By prioritizing both data optimization and data management, businesses can replicate successes in influencing buyer behaviour over time.
To effectively support business strategy and drive engagement, tracking buyers' progress is just the first step. To extract the full value from this data, it's essential to invest in data valuation and make a strategic data investment. By prioritising data valuation and investment, businesses can optimise the customer journey and encourage further engagement. Utilising this data also helps to gain a deeper understanding of customer behavior and preferences, enabling businesses to provide more personalised and relevant support. By leveraging data to support business strategy and drive engagement, businesses can achieve sustained success and build customer loyalty over time.
Over to you
Our mantra at Incisive Edge is strategy, implementation and optimisation. Everything derives from your strategy which must put your prospect and customer at the very heart of everything you do.
If you really want to speak to your audience and need help in getting your data sets real life friendly, speak to one of our tech marketing experts today. Contact us or why not benefit from our years of experience by booking a free strategic marketing consultation?