Data is the new oil.
We’ve heard this phrase a few times too much, but it’s hard to argue against it. Data is arguably the most important resource in the modern world.
For advertisers, data equals insight. It provides valuable information about customers, markets, and trends. As a matter of fact, many key breakthroughs in modern advertising are products of data: personalized advertising, omni-channel integration, and predictive marketing.
Moreover, data helps marketers get better results. Research by Invesp CRO shows data-driven marketers deliver up to 8x more ROI compared to their peers.
It’s no wonder more and more firms are investing in data.
In this article, we outline five reasons why the best digital marketing firms are data-driven, and, of course, we have the data to back up our claims:
1. Data-Driven Digital Marketing Firms Know More About Their Customers
Any digital marketing firm can spin customer segments out of thin air, but the best ones rely on cold hard data.
There’s a world of difference between the two approaches.
Absent data, you get a lot of guesswork disguised as experience—you’re pretty much stuck with whatever an “expert” thinks they know about your customers. With data, you can act based on facts.
Data-driven firms are very particular about customer data, keeping track of who your customers are, what they do, and where they go (in a non-creepy way, of course).
Using tools like Google Analytics and Crimson Hexagon, or platforms like Facebook, Instagram, and Amazon, they can collect and curate customer data and deliver personalized ads and offers in real-time.
That said, it’s important to draw the line between personal and too personal. While 71-percent of customers prefer ads tailored to their interests and shopping habits, only 29-percent will engage with ads that contain their name (Adlucent).
2. Data-Driven Digital Marketing Firms Give Smarter Recommendations
Image from Hedgeye
For a data-driven marketing firm, data is a goldmine for insight. It allows them to make better recommendations and, occasionally, unearth unexpected relationships.
Experience is important, yes, but with the pace the world is changing, we need to constantly evaluate and reevaluate our facts so we can make better decisions.
The best marketers these days recognized that what they learned from experience over the last 30 years can change overnight, and they consult the data to get to the truth.
3. Data-Driven Digital Marketing Firms Offer More Transparent Results
Data makes it harder to lie.
One of the advantages of working with a data-driven digital marketing firm is getting reports that reflect what actually happened. Things may not always go as planned, but at least the data can clear things up, and tell you what you did well and what you didn’t do so well.
Even if your latest launch didn’t fly, it’s comforting to know that you and your digital marketing firm have the information you need to make the next one better.
4. Data-Driven Digital Marketing Firms Close More Leads
Notice how Amazon and Netflix seem to know what you want before you want it?
That’s the power of data in action.
Mining data helps digital marketing firms discover patterns and relationships we might otherwise miss—Who buys what? Which products go together? When is the best time to send a follow up email? What platform gets the most engagement? Are there trends I can capitalize on?
Data-driven marketing firms use their data strategically, using it to predict whether a lead is likely to purchase or not, which lead funnels are most effective, and other things that allow them to get the right products to the right customer at the right time.
Closing leads is equal parts creativity and science. Work with a firm that can give you both.
5. Data-Driven Digital Marketing Firms Offer Greater ROI
Data allows marketers to be more precise, both in terms of maximizing revenue and minimizing costs. It tells them exactly where and where not to put their advertising dollars.
Data-driven digital marketing firms are so effective and efficient because they fail fast. Because they track their activities in real-time, they can drop ineffective campaigns and run with effective ones on the fly. It’s a process of constant iteration that always seeks the optimal outcome.
For a digital marketing firm, data isn’t the future; it’s the present. The top firms are where they are now because they understand how to use data to create better campaigns and drive better business outcomes.
What does it take to be data-driven?
It’s simple: the discipline to collect, manage, and analyze data, and the willingness to invest in it.
If you’re already working with a digital marketing firm, look out for the five signs we mentioned above. These will tell you if the firm you’re dealing with knows and understands the value of data.
If you’re looking for a data-driven digital marketing firm to work with, you’re in luck. At the Marketing Agency Network, we curate and manage a directory of the best digital marketing firms in dozens of cities all over the world. Just click the button below and search for a firm in a city near you.