Customer data is a key source in shaping a Data-driven marketing strategy. Finding and collecting this data is extremely challenging in today’s world, particularly in the last five years.
In this occasionally hectic world managing and executing data-driven strategies is not child’s play. In addition, Data-driven Marketing tools are technology-dependent, making them too dynamic. At Upila, we talk about both the good and the bad, and hence it is important to discuss the challenges that every marketer faces with data-driven marketing. Let’s not waste time, cut to the chase and discuss 6 major challenges that marketers face.
Challenge 1: Finding High-Quality Data
- With tons of data pouring in, finding high-quality data has been a challenge, marketers need to ensure up-to-date and consistent collection of data.
- Also, having lots of data does not always guarantee any actionable results. In reality, incomplete data makes more hiccups as you will be relying on assumptions and not facts.
Marketers need to overcome these challenges by monitoring the data in real time and keeping them updated to help businesses respond quickly to customers’ needs with more personalised solutions.
Challenge 2: Finding The Right Audience
The world is pushing for more privacy and safety. In the pro-privacy world access to data, especially behavioural data is challenged. Unlike Traditional Marketing, where ads are targeted to a mass audience, data-driven marketing targets segmented audiences based on behaviour and interest. Segmenting the audience allows marketers to align their collateral with specific messages according to the audience’s desires and needs. This allows marketers to target them with suitable copies or creatives to improve conversions. With data quality deteriorating, the whole data-driven process becomes pointless in finding the right audience.
Nowadays, This challenge is addressed by many marketers by adopting methods to collect first-party data. That is, they have started collecting their own data by inbound mechanism and using them with the audience’s permission. Also, it is suggested to rely more on Contextual targeting.
Challenges 3: Make Use Of Real-Time Data
As collecting first-party data is the new game. Analysing this data from different sources in real-time is required which has turned out to be a heated process. And with the increase in the volume of data, marketers would find it difficult to manage and use this data efficiently.
This challenge is addressed with the use of automation and AI simplifying real-time monitoring. Nowadays, It has even become easy for marketers to collect data, even if their audience uses multiple devices and has their presence in multiple locations.
Challenges 4: Identifying The Right Platform
Another big challenge is to identify what platforms to adopt and the ever-changing and fast-paced world of Data-driven marketing has made it tough as marketers have to constantly update and upgrade for better integration of their data channels and full-proof analysis.
Challenges 5: Breaking Down Data Silos
- Silos are sets of data collected from multiple platforms and may often be collected by multiple teams making it not just bigger but fragmented and cluttered.
- These scattered data are tough to analyse to find oddities.
- They don’t have a singular view of the outputs, and marketers need to break them apart to keep them up to date in one place.
This is achieved by using the right Database management and integration tools where the data from all the sources are accessible and analysed in one Dashboard.
Challenges 6: Rinsing and Finalising Data
- As data is collected as silos, they come from different platforms and are way too cluttered to be valid.
- These data may also come in different formats. So, it is necessary for marketers to carefully analyse the data, rinse out inaccuracies and unify data from different sources into one Dashboard.
Recent research states that over 64% of marketers feel that improving data efficiency is the single biggest challenge they face while personalising marketing messages for their audience. And there is no unique solution to this other than keeping the data most relevant and up to date.
A data-driven strategy is all about discovering Actionable data.
Marketers need to ensure that they have actionable data. Experienced marketers identify them by asking, “What do I do with this data?”. And if they have an answer as the next step, the data is termed actionable.
Actionable data identifies patterns and defines relationships between data sets. To gather such actionable data, marketers must first understand their goals and their effect on a positive ROI.
As a data-driven marketer, it is essential to understand these challenges you face while venturing into and strategising a Data-driven approach. We have only noted a few above but would love to hear more in our comments.
Marketing of the future will be more data-centric, and in addition to this introduction of AI and automation will place more and more marketers and brands on an adoption spree. Though these newer tools and technology might make Data-driven less challenging, it won’t be as efficient as we think. As an early adopter, data needs to mature to show some expected results, which in itself is a tedious task.
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