Data Science is enormous. It brings forth a scientific approach to gather a massive amount of useful data from raw & disordered information (often collected from open sources). According to recent research, over 2.5 million terabytes of data appear daily. In 2020 every person produces 1.7 MB of data per second. Scientists, Analysts, and numerous other specialists use this data to derive decision-ready insights.
Using data science, marketers can get a clearer picture of their target audience. With this knowledge, any organization’s marketing department can formulate strategies to target customers who portray higher chances of conversion. Also, by delivering values, organizations can eventually maximize revenues. Going with the traditional methodologies, data processing can be a daunting task. Data Science offers a cost-effective solution to businesses seeking data-driven insights.
Let’s delve deeper into 5 most profitable and practical use cases of data science in marketing.
1. Budget Optimization
The primary goal of any marketer is to achieve the highest possible ROI from the allocated budget. This objective is undoubtedly difficult and time-consuming. On top of which, because of changing market dynamics and user preferences, strategies often go off the track leading to unanticipated outcomes.
Data science can be a saviour here. By analyzing the marketing department’s spending and acquisition ratio, organizations can build a model to distribute the budget in the smartest way possible. A clear picture will help marketers to invest money in the most relevant and surplus channels, thus optimizing key metrics.
2. Defining Audience Persona
While every marketer is familiar with the process of building the target audience portrait, determining the exact persona of the potential customer can still be a challenge. The lack of proper data insights might lead to ineffective advertiser decisions leading to a waste of resources.
Data science methods help marketers to understand the user persona and their preferred communication channels with data-driven insights. This means that the marketing budget will be spent on the right channels of influence, ignoring the irrelevant media, which a normal human being will think of covering for “just in case”. Such adjustment will inevitably increase the ROI and optimize the entire advertisement campaign. This will also retain brand relevance to the customers.
[Related: Your shopping cart just got a lot smarter!]
3. Brand New Social Media Marketing Strategy
Social media trends change faster than a human can track it. Facebook, LinkedIn, and Twitter define what is popular, and a marketer has to catch up with the trends.
Data science can keep you on track with the changing trends. Using the logic of Data Science in Marketing, one can get a bigger picture of what type of content people like interacting with. Data science allows us to gather and analyze data about people’s online behaviour. It provides the key metrics to adjust the SMM (Social Media Marketing) goals, which include – the time of posting, content type, amount, etc. These simple adjustments using data science insights can help increase the marketing ROI drastically.
4. Clearer Content Strategy
One of the biggest gaps between planning and execution that marketers face is knowing which channels will be affected and what kind of people will interact with their content and with what sentiment. Will be potential customers? Are interactors content gatherers? Are they the competition? Do they intend to ruin your reputation?
Knowing all this information will help streamline your content strategies.
As long as you know who your customers are; what are their perceptions about your brand; what information can attract/repel your customers; what social channels they are mostly active on; what are their sentiments with your content; what they usually do when they like or dislike a content; you’ll know what type of content you should produce.
For instance, some people hate emails, while others adore reading them. Some people want to resolve their queries publicly on social media, which some care about their online image. Data science can help achieve personalization to some extent, which can help humanize the conversations with your followers.
Let’s take another example of how data science in marketing can help stakeholders. It gives marketers insights about what phrases a customer would use while searching for a product/services online. Marketers can utilize this insight and prepare a content strategy that embeds these terms more often in your posts and articles.
Therefore, we can say that data science brings a variety of actionable insights about customer acquisition channels, their preferences, and engagement style, which can help plan content strategy accordingly.
5. Increasing Customer Loyalty
Your best customers are the ones who will not just purchase your product once but also will repeat buying and bring their friends and relatives to your store. Organizations realize that customer retention is easier than acquiring new customers.
But consolidating loyalty may be tricky. Data science can provide the marketing department with all the necessary information that can help boost customer loyalty. Based on purchase history and current search queries, analysts can predict their customer’s inclination towards a product. Accordingly, brands can create the most relevant offers for their customers. With personalized offers, existing customers feel special and will return to your brand and not go to the competitors.
The Essence of Data Science in Marketing
Using data science in marketing may ease the work of employees and uplift your strategies to new heights. We have to admit that the more structured information marketing teams have, the more effective their strategies become. At the core of any marketing efforts, data science can optimize cost for data processing and result in overwhelming conversion rates.
[Related: 5 Deep Learning Use Cases in Insurance]
About the Author: Marie Barnes is a writer for Bestforacar and an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs. She shares her insights with the world through blogging. You can follow her on Medium.
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