The internet is a colossal space with innumerable data sets being produced every second. Brands trying to track customer preferences and buying decisions use big data to find patterns, gain insights and develop actionables based on the conclusions provided by advanced data analytics. Companies can formulate effective and more targeted marketing strategies and consequently, build more business.
With an increasing number of consumers preferring to express their needs, choices, and demands online through social media, online shopping, online searches for different products and services, it is only logical that brands focus on their existing and potential customers online habits. Although, big data has been extremely relevant in the past few years, the focus areas shift regularly.
Here are three big yet interrelated ways in which advanced data analytics will determine customer-centric digital marketing strategy in 2020:
1. Integrated customer data platforms
So far, Data Management Platforms (DMP) and Customer Data Platforms (CDP) have been working in parallel to build insights for the brand. However, this year will see both these platforms working in tandem, complementing each other to help build an even more nuanced understanding of consumer habits. While DMP collates data from first, second, and third- party channels, the CDP collects first-party data. While both these platforms help build a customer’s profile and help design a more targeted marketing strategy, combining both the platforms and integrating their datasets and insights will lead to a more comprehensive understanding of the customer and enrich the insights.
2. Artificial Intelligence will lead
Today, we are being exposed to an increasing number of chatbots on different websites, be it a travel company or e-commerce store. A smart algorithm can now help the chatbot be more conversational and responsive, and help with product recommendations.
Another promising AI backed digital marketing strategy is in marketing personalisation. We are seeing it happen already- if you searched for ‘blue tooth earphones’ yesterday on your smartphone, just a few hours later you will see recommendations for the best blue tooth earphones on every device you use. AI is sure to advance further this year- algorithms encompassing your past searches, past purchase history, expressed likes and dislikes on online platforms, etc. will guide the AI to provide extremely customised product or service recommendations. It’s like having your personal shopper who knows everything about your preferences.
Artificial Intelligence has significantly reduced costs for companies, and it will continue to do so this year. Customer Relationship Management is now run by AI inputs, reducing the need for human intervention. The automation of CRM and other data-heavy or repetitive-task heavy processes will continue to increase productivity and efficiency. Targeting valuable customers, existing and potential, will become easier and lead the company to generate more sales. Essentially, AI will analyse the CRM data and help streamline the efforts of the brand to focus more on fruitful efforts that need to be replicated instead of wasting resources on the less fruitful endeavours.
3. Focus on multi-point attribution
Usually, marketers think of ‘attribution’ as the first-touch or last-touch point between the customer and the brand. First-touch is when the customer first became aware of the brand and last-touch being when the customer finally makes the purchase. However, in 2020, digital marketing strategists will need to focus on all the steps involved between the first-touch and the last-touch. Instead of a two-point process, the whole interaction will be viewed as a flowchart. With multi-touch or multi-point attribution, advanced data analytics will help with insights on how each element in the process helped push or deviate the customer from making the purchase. Instead of attributing the sale 100% to just one element (first-touch or last-touch), advanced analytics will show the contribution of each element. Here, marketers and advertisers will understand the impact of each element, rather than disregarding these links. The analysis will bring greater accuracy to what works and what doesn’t, and aid in designing marketing budgets.
Data is king, and the sooner digital marketers acknowledge this monarchy, the better for their brands’ growth.