It might not always be obvious, but data accompanies everything that we do in business. So relying data-driven marketing shouldn’t come as a surprise.
From the first moments of the customer journey to accounting spreadsheets, data explains every little detail and process. Some parts of it, like growth marketing, can’t exist without a strong data foundation.
When we talk about growth marketing, we refer to a long term strategic approach of performance optimization. We do it through experimentation, customer relationship building, and analysis. In other words, we focus on incremental progress that is directionally correct.
Growth marketing vs. Growth hacking
First of all, growth marketing is very different from growth hacking, which focuses on short term and targeted tactics. Also, growth marketers consider the entire customer life cycle and use insights to encourage repeatable, sustainable, and long-term success.
In growth marketing data ensures that we are making informed decisions and minimizes the guessing game. Using a data-driven approach helps companies to increase ROI from their marketing efforts. It also helps to shorten the buying cycle, and boost customer lifetime value.
We use data to translate and illustrate our customer’s behavior, making them measurable and, therefore – manageable. Using a data-driven approach helps us to understand the whole picture rather than following the individual metrics. After all, data-driven strategies give a better understanding of where opportunities lie.
What data does growth marketing use?
Remember: growth marketing isn’t possible without data. Trying to make decisions without information to back them up is like shooting with your eyes closed – you might hit the target, but it’s unlikely. Data is the cornerstone of all testing, analysis, and experimentation that growth marketing uses in its process.
But where every click gets measured, what data should you measure for business success?
Marketing data helps digital-first companies look behind the curtain and understand how visitors behave on the website, their interests, and where the pitfalls are.
Such metrics as Bounce Rate (how fast users exit from your website), Time on Page, and Acquisition Channels (where the users come from) highlight specific interaction with your website. No matter how beautiful the website is, the actual user experience might differ from what we see.
Social media data
It’s hard to imagine a digital-first business that doesn’t have a presence on social media these days. Besides being a channel to create strong customer relationships, social media also generates traffic for your website and promotes the brand.
Measuring social media data is helpful to evaluate your brand awareness and the impact of your work. However, don’t get blinded by the number of followers and likes. Metrics like Engagement Rate (how followers interact with your account) and Reach (how many people see your content) are better growth indicators.
Email marketing can easily be the most effective marketing channel when done right. It is widely used and allows building relationships with their prospects in a convenient way. But more importantly, it is a way to communicate with your audience directly. It’s different from social media, where factors like algorithms can come in the way.
The two most common metrics are Open Rate and Click Through Rate (CTR, how many subscribers click on links in an email) in email marketing. For a more in-depth understanding, look into List Growth Rate, Bounce Rate (how many emails don’t get delivered), and Unsubscribes.
Blog and content creation
Content marketing is the ultimate way to improve your business’s discoverability, earn a reputation, and provide helpful information for people. Creating (and measuring) new and relevant content helps attract customers to your website. Also it helps to improve your chances of choosing to do business with you.
Besides measuring Traffic and Time on Page, you can evaluate Conversion Rate (how many visitors buy from you), Comments, and Social Shares per post (users’ engagement with your content).
Your business needs to make money. Knowing how to measure your return on investment (ROI) is a must. Lead generation metrics can help you increase the number of leads. Eventually it increases your customer value, making them worth more while reducing your efforts.
Here you can analyze Customer Lifetime Value (CLTV, how much revenue each customer generates vs. the costs of acquisition) and Funnel Conversion Rate (the percentage of opportunities that move further at every stage of the funnel).
Your customers are an invaluable source of information. Quantitative data might not always show you the complete story. Especially when combined with first-hand input from your actual users, it gives a better chance to understand how to improve your performance.
The two most common metrics are Net Promoter Score (NPS, how likely a customer is to recommend your company to another person) and Customer Satisfaction Score (CSAT). If you want to get a better insight into your customer experience, talk to the support team and sales representatives. They know firsthand what your customers’ needs and challenges are.
Shouldn’t all marketing be data-driven?
Generally – yes, marketing should be data-driven. However, strategies must also be compelling on a personal level. Always remember that your customers aren’t logical machines. They are human beings driven by feelings and emotions.
It doesn’t mean that numbers don’t matter; it just isn’t the end-all-be-all. Data is the foundation of growth marketing. Generating insights through seeing the bigger picture and focusing on the customer’s journey is an equally important part of growth marketing. Data combined with insights makes the best approach for sustainable long-term success.
The caveat? Insights from data are only as useful as the person interpreting it. We can get biased and start seeing patterns where we want them to be. Remember to take a step back and see the bigger picture. Or ask an impartial expert for advice.
You don’t need to be a marketer to understand data-driven growth marketing. At Insight Labs, we are crazy about data. We work closely with entrepreneurs and business owners to analyze their business performance through marketing data. As the result, we provide actionable insights that are ready to implement. Let’s get your business growing.