3 Reasons Why Data-Driven Solutions Will Revolutionize Your Brand
Every company, business, or organization wants to know the secret to take its brand presence to the next level. In today’s world, consumers are overwhelmed with a variety of options. Because of increased market saturation in today's economy, it can be difficult for small or beginner companies to break through the mold and stand out to consumers. For companies to establish their brand identities and differentiate themselves from competitors, they must leverage data-driven solutions in building the foundation for their marketing strategy.
Allocation of Resources
First and foremost, data-driven solutions allow brands to use their money better. Too often, companies put their money into marketing strategies that they feel are the most appropriate without allowing the data to drive their plan of action. While many professionals may feel confident in their analysis of industry trends and future market patterns, it's important to follow where the data leads when it comes to spending money. When a company allows the data to drive the allocation of its funds, its resources are used in the most efficient way possible. Additionally, there is less risk involved when a company allocates money based on data-driven solutions. For example, if the numbers show that a new campaign’s ads are performing better on mobile devices than on CTV (television ads), the company can confidently divert its funds to reflect this pattern by allocating more money to ads on mobile devices and taking away money from CTV ads. In simpler terms, data-driver solutions save companies a lot of time and money.
New Growth Opportunities
When companies allow data to guide their business endeavors, they will find new areas within and outside their given industry to expand and grow. With the insight that data-driven solutions provide regarding industry trends, companies can infiltrate areas within their industry that they can capitalize upon. For example, usage trends on social media, visible through data analytics, may show that middle-aged women are beginning to transition from Facebook to Instagram and TikTok. With this information in mind, companies that utilize data-driven solutions will have the insights necessary to guide their strategy if they choose to target this transitioning demographic. Companies that leverage such insights have a competitive advantage over their competitors. These companies would know how to connect with their transitioning audience through marketing strategy and brand adjustments to align with this detected pattern. On the other hand, data-driven solutions may provide businesses with growth opportunities in other industries, allowing companies and businesses to expand their overall reach.
Connection to Desired Target Audience
Businesses love to guesstimate the attitudes, behaviors, and key characteristics of their target audience because they underestimate the complexity of the modern consumer. Consumers see through cookie-cutter advertisements which offer vague descriptions of products that make too good to be true promises. Micro and macro influencers, specifically on TikTok and Instagram, are the main proponents of this “consumer distrust” theme. Consumers have been offered ads that show how the product works and what it is used for in real-time, so companies have to work harder to convince their target audience to achieve the point of purchase. Luckily, data-driven solutions allow businesses to see a more accurate breakdown of consumer habits and patterns. Analyzing this data can help businesses connect with their consumers on a deeper level, allowing them to tailor their brand more appropriately to the people they wish to reach. Additionally, data-driven solutions may illuminate a different, more appropriate target audience toward which a company can direct its time and money.
All in all, companies that don’t adapt to a data-driven framework will fall behind those that embrace it. As we enter a difficult economic period, businesses cannot afford to take the power of data-driven solutions with a grain of salt. To truly establish brand(s) apart from the competition, companies, businesses, and organizations must learn to leverage their data-centric business model.
Meet the author
Madison Grinder is a senior Political Science and Strategic Communication double-major at Texas Christian University. She currently serves as the Director of Public Relations on the Purple Team. She hopes to continue working within the ad tech and digital marketing industries when she graduates. Madison is passionate about writing, fashion, and cinematography. In her free time, she loves to spend time with her friends, try new restaurants, and workout.