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Data is the perfect supplement for your company’s health. In a recent Google study with the prestigious Boston Consulting Group (BCG), experts reveal the impact of data-driven marketing (i.e. promotional strategies based on big data analysis) on organizations.
Big data allows companies to gather valuable information about their audience and their preferences, which in turn, creates personalized and targeted communication.
There were several surprising takeaways from this study. Of the companies surveyed, only 2% utilize data in advanced marketing. This is certainly a low number considering the advantages are extremely positive, including increased revenues by 20% and reduced costs by 30%.
For the second phase of the study, BCG analyzed 6 companies to understand the impact of the following strategies:
In just 6 weeks, these technologies increased online transactions up to 50%, ROI by 33% and the cost per action of advertising campaigns by 44%. As evidence illustrates, data-driven strategies certainly lower costs and increase revenues.
As significant as data is for marketing, we must not leave out the human component. Leveraging professionals who are trained in machine learning for campaign management improves results an additional 15%.
Companies who include strategic partnerships, experts from different disciplines and agile managers into their operations will benefit greatly. In fact, “companies with high organizational maturity reported 1.4 times the impact on costs and 2.5 times the impact on revenue compared with low-maturity marketing organizations” (BCG).
The Boston Consulting Group highlights that data-driven companies are able to achieve much higher results than their competitors. However, to reach the highest levels of performance, organizations need more than just technology, but the right staff in place.
Travel Appeal’s mission is to aid business managers and markers make sense of the data tsunami, create strategic decisions and make customers happy. To do so, we recommend the following:
Invest in sophisticated big data analysis tools (i.e. Dashboard, Coach or Custom Reports)
Take advantage of artificial intelligence and machine learning for a both an overview and detailed analysis. Interpret the thousands of data and online content, collected in real time, and take action accordingly (i.e. Smart Insights)
Never stop learning. Train your team so they’re not only aware of, but know how to implement these tools in everyday communication and planning