How Can Data Science Help You Optimize Your Marketing Budgets?
The key to conducting an effective marketing campaign is proper adjustment of planned actions to the audience it will reach. This is where data science comes in handy by shifting attention to fields that should be developed in order to reach as many people as possible and maximize benefits. Even though data science does not directly acquire more customers for the business, it is of great importance when it comes to pitching a target audience that will later turn into profit. Inexperienced brands tend to waste money on ineffective channels and strategies that do not bring surplus to the company. With data science, you have no such problem!
Proper understanding of data is crucial in setting all the return-on-investment strategies, especially the ones concerning marketing. Data science provides you with the needed solutions and knowledge that help you set and optimize an efficient online marketing campaign. Below, you will find five possible uses of data science in your day-to-day marketing strategies:
Prediction and optimization of conversions
The more people your content and ads reach, the higher is the traffic on your webpage. However, you surely understand that the more significant number of people visiting the website does not always mean higher conversions. What matters the most is relevancy. What does it mean? As it is stated in Pareto law, typically, 80% of your total sales come from just 20% of the whole target audience.
Data science’s primary purpose is an attempt to change that odds by making you understand which actions lead to higher conversions. This knowledge is advantageous, especially when your marketing budget is strictly limited. Machine learning algorithms can measure what impacts conversions the most and, based on that, suggest marketing assets that should be used for the highest performance.
An interesting example of a person who used a custom machine learning model to increase sales is an… Online gardening retailer, Sarah Raven. The ML algorithm identified pages on her website that brought the most traffic and provided her with suggestions for further optimizations. Improving a single product page and devoting a significant part of the marketing budget to this activity increased transactions by a whopping 194%.
Improvement of lead scoring
Data science helps you with estimations of leads that are most likely to respond to a given offer. It enables you to allocate a budget in a smarter way, optimize the response time, and highly reduce productivity loss. Instead of guessing what may be a correct choice, all the actions taken by your team will be based on insights that are backed up with actual data.
Use of prescriptive analytics to reduce pay-per-click budget waste
Nowadays, there is a wide range of platforms and tools that enable conducting marketing campaigns on autopilot and securing the best possible media buys. However, many small company owners who are new to the digital world have no idea how to spend their budget on Google or Facebook Ads campaigns effectively.
This is where data science turns out to be useful. The analysis of data gives you the possibility to explore factors that affect the behavior of prospective customers. After all, your pay-per-click conversions can be affected by many different factors, including season, weather, or time of day.
For example, if your website’s traffic tends to appear mostly on Thursday evenings, you shall increase your pay-per-click budget at that time. As a result, you will gain more exposure, which has a high chance of translating to conversions. What is more, it is possible to automatically notify you and temporarily stop the campaign in case conversions drop below the desired level.
To sum up, data science helps in proper marketing budget allocations. You can start small by exploring cases such as the impact of time of the year on sales of a given product or finding out which landing page converts best for females in their thirties.
You can use the discovered results of your analysis to scale and explore more complex cases. Consolidated and cleansed data can be reused in multiple data science models and applied in a number of different cases. Thanks to that, you will create a highly-effective, accurate and sustainable analytics system that will provide your team with predictive suggestions on marketing budget allocation. And if you’re wondering how data science can help you optimize your marketing campaigns, visit https://addepto.com/data-science-consulting-services/ for more details.