Importance of Data-Driven Marketing

The burgeoning growth in technologies has led to the development of data-driven marketing strategy. Gone are the days, when marketing was solely based on assumptions and gut feelings.

Today, data-driven marketing is considered to be the most reliable and lucrative approach used by companies all over. In fact, it might not be wrong to say that in the coming years, it will be termed as the future of technology.

Hold on, wait a second! But what is data-driven marketing? Don’t worry! We at GulfDigital always ensure that all your queries get covered in the blog. Data-driven digital marketing is the approach of optimising brand communications based on customer behaviour.

In other words, data-driven marketers use customer information to predict their needs, desires and future behaviours. Thus, this helps in developing personalised marketing strategies for the highest possible return on investment.

Now let's delve deeper to gain more insights and trace the path from where it all began to what it is today.


It all began with the inception of the customer relationship management (CRM) software. CRM is any tool, strategy, or process that helps businesses better organise and access customer data. The 1980s marked the beginning of digital Rolodexes and database marketing, wherein analysed customer data was then used to help customize communications with other potential customers.

During the 1990s, contact management software evolved to sales force automation (SFA). This provided businesses with much more useful information as it was an amalgamation of several features taken from database marketing which were automated and combined with contact management. Stepping into the 2000s, the CRM industry suffered a huge hit due to the failure of the dot-com bubble. However, in the late 2000s, a big change came about in the CRM industry with the introduction of cloud-based CRM software. This made the CRM software extremely affordable for the companies and at the same time, it became a necessity to carry out customer-centric businesses.

Therefore, this inevitably brought about a massive change in the way businesses functioned, as they realised that there was a significant rise in the customers demanding for a personalised experience. Thus, data driven marketing facilitates better engagement with the customers at a personal level.


Kim Walsh rightly said, “The modern marketer is an experimenter, a lover of data, a content creator and a justifier of ROI.” Customers have preferences that guide their thinking and behaviour. Thus, a company which uses a data driven marketing approach to target potential customers has a much better chance to achieve this and to convert them into paying customers.


Let's have a look at the ways in which data can be beneficial and resourceful for marketers.

A. Quick decisions can be made as marketers have better clarity about the target audience. Volkswagen India has introduced a new corporate sales program targeting young professionals. They came up with this program meant exclusively for young professionals because the company targets a section of trustworthy, verified, salaried professionals who are willing, interested and capable of buying products.

B. Building good relations with customers using real-time campaign data.

Toyota came up with a campaign that relied on mobile location data for improved targeting. Location-based audience targeting urged prospective buyers to visit dealerships in Delaware, Pennsylvania and New Jersey.

C. Not only is it just limited to telling about the customer’s preferences but also can suggest the best channels the marketers should use to interact with their potential customer base.

Under Armour uses a multichannel marketing strategy and fosters a community within its applications. All of its applications are connected to one another which helps the company to sell its products.

D. Personalisation helps facilitate a better customer experience.

McDonald recently acquired Dynamic Yield, an Israeli start-up that uses big data to create personalised offers and experiences for the customers.


Well, it’s true that there are some challenges and hindrances that marketers face when it comes to data driven marketing.

Looking at the above statistics, let's find out what makes data driven approach a little difficult to use:

  1. Collecting and gathering the right data can at times become a daunting and stressful task. Marketers might find themselves perplexed as they don’t know where to find accurate data or how to sort relevant data from the endless sea of information. Therefore, proper planning and making informed decisions are quintessential.
  2. At times, one might go wrong by asking irrelevant questions about the data that is available. This can lead to fallacious results and the end result would only be - a complete waste of time! Thus, ensure that you ask correct questions in order to transform data into insights.