Data has become the driving force behind marketing strategies. Companies now have access to vast amounts of customer information, that allows it to tailor-made campaigns to target specific audiences. “One of the key advantages of data-driven marketing is its ability to provide valuable insights into consumer behaviour”, Priyanka Gill, group co-founder, Good Glamm Group and CEO – Good Media Co., said.
By analysing customer data, companies can identify patterns, preferences, and trends, enabling it to make informed decisions about their marketing strategies.
However, many organisations still struggle to fully capitalise on the potential of this data. “This is because companies need to first address the problem statement of consumers in order to use the humongous data available, and not the vice-versa,” explained Vipul Prakash, COO, MakeMyTrip.
Another obstacle is the volume of data available. With the proliferation of digital channels, social media platforms, and online transactions, businesses are inundated with data from multiple sources. “Effectively harnessing this information in the form of data, requires sophisticated analytics tools and the expertise to interpret the results,” Ravi Santanam, chief marketing officer, HDFC, stated.
Unfortunately, not all companies have the necessary infrastructure or skilled personnel to navigate this data maze. Furthermore, data privacy concerns pose a significant challenge to data-driven marketing. In the wake of high-profile data breaches and scandals, consumers have become increasingly cautious about sharing their personal information. GDPR has been rolled out in the EU and the UK while in India PDP is yet to be a law. While the regulations are necessary, they limit the amount and type of data that companies can collect, which may hinder its ability to create targetted marketing campaigns.
Moreover, there is a tendency to rely solely on data and neglect the importance of creativity and intuition in marketing. “While data provides valuable guidance, it is not a substitute for human intuition and innovation. “The most successful marketing campaigns often involve a blend of data-driven insights and creative thinking, allowing companies to connect with their target audience on an emotional level,” Chandan Mukherji, director and executive VP – Nestle India stated.