How to use data-driven marketing strategies to boost conversion rate

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Illustration of a keyboard with words ‘big data’, symbolizing ways to use data-driven marketing strategies to boost conversion rate.

We must all agree that online businesses thrive today. The versatility of online marketing is filled with potential for a successful business. Aside from all the other benefits, one of the major advantages of online marketing is that it makes data collection and analysis simple and precise. Companies worldwide collect and analyze big data and use it to support their future marketing campaigns. As a business owner, you need to use data-driven marketing strategies to boost conversion rates, and that is what you will learn today.

This article aims to bring you closer to understanding the importance of big data and data-driven marketing and how it directly relates to your profit.

What is big data in marketing?

Big data is a very popular term in marketing. It includes any piece of information about a client that a business can collect. The goal is to get a complete picture of how your clients think, what their shopping habits are, what are their likes and dislikes, and so on.

An illustration showing different elements of big data

What is data-driven marketing?

Once you collect information about your targeted audience, you need to do something with that data. Marketing teams analyze data to discover behavior patterns that will help create attractive offers. That is why data-driven marketing is so popular; it allows businesses to get to know their targeted audience on a detailed level.

It also helps improve business on many levels. For example, you can use customer data to not only enhance your offers but also add more functionalities to your website, build a customer-oriented app, and much more.

How to use data-driven marketing strategies to boost conversion rate

Conversion rate is one of the most critical metrics for a business. It tells you how effective your business is and if your marketing strategies are efficient or not. Companies always look for new ways to boost the conversion rate, and data-driven marketing is one of the most successful approaches.

You can boost your conversion rate with data-driven marketing by:

  • improving customer journey;
  • doing A/B testing;
  • creating a personalized experience for your clients.

Let’s learn more about these strategies.

Improve and optimize customer journey with the help of data-driven marketing

Customer journey includes everything that happens from the moment a customer discovers your business up to the point where they have bought the product and are using it actively. It is a live thing that constantly changes.

The goal of every business should be to improve the customer journey constantly. The first thing to know is that the customer journey happens in four distinctive phases.

During the first phase, the visitor is not yet a customer. They may have subscribed to your newsletter and are visiting the website occasionally, but no significant actions happened. This is more of a casual phase.

During the second phase, the visitor becomes more active. They are becoming interested in your offers and are doing more research on the products. Even though the conversion did not yet happen, the interest increased.

An illustration showing the creation of a marketing strategy from an idea to success

Once the visitor converts and makes a purchase, they become a customer and enter the third phase. This is when your business makes a profit.

Phase four is when a customer becomes a loyal, returning customer. You can split your customers into two categories, those who made one purchase and those who made multiple purchases. Becoming a loyal customer is something that happens only if the customer is completely satisfied during the customer journey. And they are enjoying the product.

Now that you understand these four phases, looking at the impact of data-driven marketing is essential. Per MoversTech CRM, the data you collect on customers should help you smoothly transition between the phases and remove the doubt potential visitors may feel. The sooner you familiarize yourself with them and connect on a more personal level, the sooner they will convert.

It is crucial to talk to your visitors and customers. You can do it via email, phone calls, interviews, web surveys, through customers writing reviews, and so on. Try to discover how they found out about the business, whether they enjoy the website or not, whether there are any things they would change, did they experience any negative situations, how much value they are getting from your offers, etc. The real data is there; you just need to collect it.

How data helps with A/B testing

A/B testing is one of the most efficient experiments you can use to keep track of strategy efficiency. As a marketer, you must create a marketing strategy, engage with the clients, and collect results. Then, you change a small detail in your marketing strategy, repeat the campaign, and compare the results. The testing tells you how much the small change affected the campaign’s efficiency.

The data you collect on your clients is perfect for A/B testing because it gives you options. You should never assume how your customers feel about something. Put it to the test and find out. Let’s say you want to start a blog and make passive income online. You can add articles, track the number of readers, and do surveys. Once they give feedback about your website, you can make small changes and see how that affects the number of readers and future feedback.

Personalized offers increase conversions

Think about your number of competitors, and ask yourself one question. Why should a visitor become your customer and not a customer of one of your competitors? What is it that you are offering that is so much better? Is it the quality of the product? Is it customer support? Or are your prices more affordable?

An illustration of multi-colored arrows pointing up.

Many factors affect this. You need to tweak all of these elements to create a unique offer that exactly matches your customers’ needs. That is a personalized offer.

By collecting customer data, you will notice that all customers fall into specific groups. Whether it is by age, gender, financial capabilities, or their likes or dislikes, you will form these various groups of targeted customers. Every group should have a personalized offer that speaks directly to them.

Data-driven marketing is the way to success

Customer data is the key to the future. You should use data-driven marketing strategies to boost conversion rates and secure your business for many years to come. This data will also have a lot of impact on scaling and growing the business. Once you feel like the data is becoming more extensive, you should use software like CRM to maintain it. Best of luck with optimizing your business!