What is Data Driven? Effective Data Driven application process

The concept of Data Driven is no longer strange to businesses, especially to Marketing departments. So what is Data Driven? How to apply Data Driven effectively? Let's answer the above questions through the article below from 1C Vietnam!

1. What is Data Driven?

What is Data Driven ? Data Driven is a method of synthesizing information and actual data for businesses to make accurate and highly effective decisions. Using Data Driven will help businesses measure the feasibility of decisions instead of relying on intuition.

One of the most popular Data Driven applications is Data Driven Marketing. Based on synthesizing existing consumer data such as habits, preferences, purchasing frequency, etc., businesses can accurately determine customers' needs and desires, thereby building strategies. suitable promotional strategy.

2. Benefits of Data Driven

Data Driven is a scientific method that helps businesses increase revenue and profits, while optimizing costs. This method is superior to making decisions based on emotions thanks to benefits such as:

• Proposing business decisions: With Data driven, business decisions are built based on analyzed data, limiting emotional factors and personal opinions of the decision maker. Approaching this method early will help businesses make more accurate choices, improving their business operations.
• Identify threats and prevailing trends: Analyzing customer search information will help businesses identify market needs or future consumer trends. Thanks to the above information, marketers can prepare product promotion strategies to capture new opportunities.
• Create a connection between businesses and customers: By having information about customers' desires and needs, businesses will understand the consumption habits, preferences and difficulties of customers when using products. product use. From there, administrators can connect and build closer relationships with their target customers.
• Improve long-term performance for businesses: Data Driven helps identify inefficiencies and waste and thereby provide processes and solutions to optimize resources for businesses.
• Enhance competitiveness: Identifying future trends early through Data Driven helps businesses be fully prepared in terms of resources and marketing strategies to capture market share and lead the trend.
• Cost savings: Not only does it improve business competitiveness and revenue, Data Driven also helps administrators find inefficiencies and waste in the business. Then reallocate resources, optimize processes and save costs.

3. Effective Data Driven application process in Marketing

After understanding what Data Driven is , it is easy to see that the Marketing department will enjoy many benefits if it effectively applies this tool. Below are detailed instructions for applying Data Driven in Marketing activities:

3.1 Step 1: Collect data

To use Data Driven effectively, businesses need to collect a database that is reliable, accurate, complete and related to the problem to be solved. This will help the project proceed smoothly and achieve the best results.

According to research, data collection and processing takes up 20% of a project's time but contributes to 80% of the project's success. Some popular data collection methods include:

• Survey: Access a large customer base through Google form.
• Reputable reports and studies: Collect data from past reports.
• Interview: Businesses can use this method with a few specific individuals.

3.2 Step 2: Process and classify data sources

After completing the collection, this data will exist as raw data and to be able to apply Data Driven, businesses need to process it effectively. Businesses can follow the following criteria to filter out quality data:

• Accuracy: Represents the level of trust and authenticity of the information the business has collected.
• Completeness: Expresses the level of coverage and detail of information after being collected.
• Consistency: Expressing consistent information, without contradictions of the same information.

For example: In a database of bank transactions, the transaction time is formatted according to the dd/mm/yy standard, so the remaining data must also be formatted according to dd/mm/yy. mm/dd/yyyy must not appear in any data field, similar to many other databases.

After collecting and selecting quality data, businesses will classify based on purpose of use. Within an organization, the data can be classified as follows:

• Participable data: Data that can be shared and aggregated with other business data when needed.
• Shareable data: Data that can be shared across business departments.
• Queryable data: Is filtered data, extracted from a larger database. From there, businesses can filter and sort according to appropriate criteria to easily query for future uses.

3.3 Step 3: Data reporting

Data after processing and classification will be used for reporting. Depending on the purpose of use, data will be filtered and classified to suit the content and message the business wants to convey. When reporting data, practitioners need to note the following:

• Understand the goal and message you want to convey of the report, then select the appropriate data.
• Analyze and link data to ensure brevity, ease of observation, and clear expression of the message to be conveyed.
• Flexibly use images to monitor data most visually: Column charts, pie charts,...

3.4 Step 4: Analyze data

Based on the reporting and data analysis process, businesses will notice remaining problems. However, problems are expressed in numbers, so if you want to find the root cause, businesses need to combine Data Driven with other management methods.

3.5 Step 5: Apply data to build Marketing campaigns

Based on the collected data, businesses will determine specific goals for each Marketing campaign and make appropriate plans to achieve those goals. Businesses should choose the necessary communication channels as well as the message they want to convey that is appropriate for each customer file. For example, Facebook is a channel that helps businesses increase brand awareness effectively, while Tiktok will easily reach young customers aged 18-40.

4. Development trends of Data Driven 2024

In the modern business context, Data Driven is expected to become the main trend of businesses. Some applications of Data Drive 2024 include:

• Increased use of artificial intelligence and machine learning: With the development of technology, AI will optimize data collection and analysis for businesses, thereby making more accurate and optimal decisions. .
• Real-time data analysis: To promptly respond to rapid market changes, Data Driven will be the right tool for processing, analyzing data and making decisions in a timely manner.
• Data security: Securing information, customer data as well as company data is becoming increasingly important in today's era. Therefore, in addition to accurately collecting, classifying and analyzing, businesses need to pay more attention to storage and security issues to avoid unnecessary risks of data loss.
• Multi-channel marketing: Using multiple platforms will help businesses reach target customers at every touch point on their purchasing journey.
• Analyze overall and detailed customer portraits: Data Driven helps businesses grasp important information about customers, thereby sketching out their identities, consumer behavior characteristics, level of interaction, and preferences. ,...;
• SEO Content Marketing: By applying Data Driven Marketing, businesses need to pay more attention to using appropriate keywords for their campaigns. Using the right keywords will increase your business's visibility on Google and make it easier to reach target customers.

We hope that with the knowledge 1C Vietnam provides, your business will have a better understanding of what Data Driven is and how to apply this method in practice. In the future, this trend is predicted to become an important factor determining the success of businesses in production, business and sales activities. If you have any questions, please contact 1C Vietnam for support.