Marketing departments are more than just creatives.
Catchy phrases, creative campaigns, and clever one-liners are no longer the main prerogatives of marketing departments. Data-nerds or marketing ‘quants’ are joining the ranks of marketing teams, and some even go as far as comparing ‘data marketers’ to the algorithmic traders on Wall Street.
As big data has grown, it has infected marketing strategy. Data analysis and data acquisition are key components of most marketing strategies. This isn’t surprising, as data offers potential for more targeted campaigns, and unique insights that can propel sales and a more robust understanding of customers.
The importance of big data and data analysis is highlighted by the recent growth of ‘data scientists’.
Consider the following information regarding the American economy: the talent pool of data scientists only meets 20% of the demand; demand for Computer Systems Analysts with big data expertise increased 89.9% in 2014; growth for data analysts working in market research is projected to grow 41% between 2010 and 2020 because of an increasing reliance on data explaining consumer behavior; and, The McKinsey Global Institute has predicted that by 2018 the United States could face a shortage of up to 190,000 people with deep analytical skills. (source 1,2,3,4)
With such growth in data analysis, what are the specific reasons why marketing executives and departments want more data?
1. For Predictive Analytics
Predictive Analytics is using past and present data to predict metrics and patterns in the near future. This is an obvious advantage. Business applications include customer retention, fraud detection, and direct marketing. The IRS uses predictive analytics to data-mine tax returns and detect tax fraud.
This chart reviews 7 business applications of predictive analytics.
2. For Psychographic Data
Psychographic data is demographic data’s first cousin. Just like demographic data, psychographic data is tied to an individual/profile but it is not as concrete or factual as demographic data. Instead, it represents behaviors, likes, and interests. It tells us ‘why they buy and what they think’ versus who they are. Therefore, psychographic data is highly relevant in contextual marketing and remarketing tactics.
3. For Email Remarketing And Email Targeting
Psychographic data provides context and data for remarketing campaigns. Common remarketing channels include Email, Google, and Facebook. In the email channel, content remarketing campaigns are prevalent, as well as the eCommerce industry’s abandoned shopping cart tactic.
Email retargeting shows ads to customers across digital ad networks, based on the emails they have opened or clicked-through. Email may be the third best new customer acquisition channel in digital, and BustedTees used email retargeting to achieve a ROI of 390%.
CPGs, retailers, and restaurant chains will continue to seek a market advantage, and the implementation of big data through marketing applications can create competitive advantages. Marketing executives and team leaders should not overlook their digital infrastructures and vendor partnerships.
Read the platform page to learn more about CoupSmart’s digital promotions and data acquisition technology.