1. August 3, 2015
5 Data-Driven Marketing Mistakes to Avoid
http://www.marketingid.net/topics/datadriven/5-data-driven-marketing-
mistakes-to-avoid/
Jessica Hawthorne-Castro
Advertising has experienced a technology revolution over the past decade, with
chief marketing officers (CMOs) using more analytics, metrics, and reporting to
more effectively target, attract, engage, and create loyalty. As part of that revolution,
Big Data, analytics solutions, and marketing automation platforms have come
together to give CMOs a leg up when it comes to understanding prospective, current,
and even past customers. Over time, in fact, the concept of “data-driven marketing”
has all but replaced the more traditional and manual ways of finding, engaging, and
retaining customers.
According to research firm Gartner, data-driven marketing is “the acquiring,
analyzing, and application of information about customers’ wants, needs, context,
behaviors, and motivations.” Over the past few years, this process has come to the
forefront of nearly every CMO’s mind as they strive to better engage their existing
and prospective customers. Using data-driven marketing, for example, companies
can more readily gather, integrate and assess data from a variety of sources — both
internal (customer relationship databases, past purchase histories, etc.) and
external (market research, social media interactions, etc.) — to help enhance value.
While data-driven marketing sounds simple enough in theory, the actual mechanics
behind it can be rather complex. Here are five common data-driven mistakes and
some tips on how to avoid them:
1.) Not Taking The Time To Consider Consumer Motivations
While data-driven reports may be largely focused on numbers and percentages,
marketers that focus too narrowly on those digits are completely missing the boat.
Instead of simply poring over numbers and hoping that something useful comes out
of that exercise, take the time to develop a complete, 360-degree view of exactly
what your customers want, need and think. From there, develop effective
advertising campaigns that engage those consumers and keep them coming back for
more.

2. 2.) Overlooking The Need To Extract Actionable Insights From Data
Most marketers barely scratch the surface in terms of the data that they rely on.
Instead, they should be really digging in and trying to extract actionable insights
from the information, which is at the very heart of what direct marketers do and
have been doing all these years. Innovators use data to stay ahead of the curve. They
don’t simply execute on a one-time basis — they duplicate the data in a way that
enables repeatable successes and avoids mistakes. Ignore the value of the additional
actionable analytics that reside in your data and you’ll wind up wasting money and
time, and losing customers in the process. Once extracted, those insights can
influence media, creative, and web strategies in a very meaningful way.
3.) Never Taking The Time To Thoroughly Research Key Consumer Trends
Your company doesn’t operate in a bubble, and its data-driven analytics approach
shouldn’t either. The Internet is a goldmine of information about consumer trends,
and the data analytics companies themselves are publishing much of it online. Tools
such as Simmons’ National Consumer Studies, for example, feature insights into
consumer attitudes, product and brand preferences, media consumption habits, and
demographic and lifestyle characteristics. By studying these and other resources,
marketers can see how consumers in specific demographics respond to different
advertising messages and mechanisms — yet another way to effectively leverage
data analytics.
4.) Not Fully Utilizing All Of The Technology Tools Available
Data-driven marketing isn’t just about generating more reports or tracking more
numbers – it’s about utilizing an array of technology-based tools to develop the 360-
degree view mentioned in #1 above (and then leveraging that view to make better
campaign decisions going forward). Hawthorne’s Market Retail Penetration
Indexing (MRPI), for example, helps marketers in the housewares, hardware, and
other consumer industry segments lower their campaign costs and increase retail
response. Proprietary in nature, the MRPI is basically a methodology that we use
when approaching new retail markets. The formula includes extensive upfront
analytics and a creative approach that not only resonates with the brand messaging,
but that also delivers a response. Then, specifically for retail, sales are driven even
further through a deep analysis of specific target markets.
5.) Shifting Focus Away From The Ultimate Consumer Engagement
Consumer engagement is no longer a one-step process, but rather a myriad of
potential touch points and interactions. When television, web, mobile, retail, and
other sales can be measured and assessed for performance — and then tweaked
accordingly — the entire campaign benefits. To gain those and other benefits, look
at how the consumer engages with your company across all platforms, and then use
that information to draw insights into response frequency, buying preferences and
transactions.

3. By avoiding these five mistakes, companies can not only do a better job of analyzing
their internal and external data, but they can also build stronger customer bases and
gain improved lifetime value from those consumers. As an added bonus, firms can
growth their businesses year-over-year, explore viable market opportunities,
develop innovative means of reaching new consumers, and reap more rewards from
media and advertising investments. All told, data-driven marketing provides a
platform upon which winning campaigns can be rolled out and executed, all with an
eye on the metrics that lift sales and help build successful product lines in even the
most competitive business environments.
Jessica Hawthorne-Castro is the CEO of Hawthorne Direct, an analytics
and technology based agency that specializes in accountable brand
advertising. Hawthorne Direct has been a leader in the direct response
industry that was pioneered by Chairman Tim Hawthorne nearly 30
years ago. Hawthorne-Castro’s leadership role involves innovations in
analytics and accountable advertising accompanied with service-
oriented relationships with the company’s high profile clients, helping them to
envision, create, and execute powerful advertising campaigns that build brands and
ignite consumers.