What Is Data Empowerment Marketing?
Data Empowerment Marketing (DEM) is a process that has gained popularity in the world of today’s business. It includes gathering customer-related data by marketers to optimize their professional efforts and achieve solid commercial outcomes. There are many ways how DEM could contribute to the progress of marketing relationships, and one of them is the improvement of decision-making and problem-solving. DEM creates new opportunities for employees to work with large amounts of information and develop different attitudes toward responsibilities. On the one hand, advertising and communication with people help to establish trustful relationships. On the other hand, survey and qualitative data collection turn out to be a scientific part of a DEM process.
As soon as enough information about potential customers is obtained, marketers are able to understand their expectations, wants, and needs and choose effective strategies to introduce and promote services. The choice of a good plan is a primary step in advertising and sale, and its implementation depends on how much information is available for analysis. The outcomes of brainstorming are hard to predict, but they are crucial for promoting services. Therefore, DEM is not only a routine process but a chance to benefit from information about customers while offering new services, goods, and ideas.
The DEM Process
The DEM process is never the same for all companies because many decisions and approaches have to be predetermined by available resources. However, in most cases, data is defined as the core aspect of strategic decision-making that has to be properly organized. According to Pruitt, there are five stages of business intelligence, the process that translates raw data into useful information, namely sourcing, analysis, situation awareness, risk analysis, and decision support. However, other researchers offer to begin the process with a clear understanding of what has to be achieved or the introduction of a clear strategy. It is expected to ask a number of questions within the company’s circle and clarify what kind of work should be done and can be done. To reduce the number of unnecessary steps, marketers have to analyze what information they have already possessed at the moment and what factors may affect a future process.
Despite the existing variety of DEM processes, the same idea can be traced. First, brainstorming is developed to create a basis for marketing. Second, people work with available resources and identify what they might need with time. Third, cooperation is required to pose questions, find answers, and make a common conclusion. Then, data is gathered, processed, and analyzed in regard to available stakeholders and methods. Finally, after all the risks and benefits are mentioned, services and products are introduced.
Types of Data and Being Data Agnostic
The progress of marketing activities is evident, and people have to improve their knowledge about qualitative, quantitative, primary, and digital data types. The concept of being agnostic is implemented in many business strategies. However, not all marketers know how to define agnosticism and its importance. According to Flynn, channel-agnostic means the necessity to abstract communication to a message and a person (an addressee). In other words, instead of focusing on means of communication, employees investigate customers and their needs. Almost the same happens when companies choose data-agnostic steps, known as customer-first marketing. The importance of being data-agnostic is related to the possibility to neglect unnecessary information and concentrate on what really matters – a customer.
There are many examples of how companies work with data and become confused because of the sources or facts they use. When one type or source of data is preferred, such problems as biases, poor value, short-termism, and lost creativity sight can be observed. For example, instead of selecting between qualitative and quantitative surveys, companies are free to communicate with customers and avoid the challenge of preference. Employees do not care in what way data is received but use the offered material to recognize their clients.
Internal Data
Companies choose DEM methods that are applicable to their cultures and resources. The value of internal data has to be evaluated because this type of information shows what the company owns and what material can be required. Internal data is obtained from different sources and classified accordingly – customer relationship management (CRM) data, transactions data, click-stream, on-site reviews, and communications data. These examples aim at providing useful insights into people’s needs and offering background information to retain the best customers. The CRM system contains internal data about customers’ gender, age, location, and the period of using a particular service. The point of sale (POS) system is another example of how internal data is gathered and analyzed.
In the retail sector, internal data is highly valued because it allows recognizing regular customers and prioritizing their needs. Businesses track customer loyalty and satisfaction with the offered services. Some organizations use tracking systems and gather data about their customers (location, areas of interest, or the number of purchases). However, it is hard for them to understand why customers prefer one product and show no interest in another group of services. POS and CRM systems make it possible for a company to predict sales and create segment marketing strategies on the basis of internal data.
External Data
Companies have to work with different sources that contain external data (information from outside sources). For example, Kikki.K, a famous Swedish chain of retail stores, offers its products to customers online. In addition to its local database, employees address external sources to learn the preferences of the potential customers. To expand its services globally, the company should use other databases like ABS (https://www.abs.gov.au/) or Google Trends (https://trends.google.com/trends/) to learn what the citizens of a particular region want. These sites offer information about the population, recent trends, news, and even financial statistics (see Figure 1). The pros of the chosen data source include unbiased information, quick access, and timely material. The con, like many unnecessary facts, cannot be ignored because the company has to spend time dealing with irrelevant data and find credible material.
External data brings some benefits as well as challenges to the organization like Kikki.K. The business world proves that useful data can be everywhere, and the Internet allows finding the necessary service from any part of the globe. Woods calls the inability to control external data access the Data Not Invented Here Syndrome and recommends spending more time and efforts to train employees to utilize external sources instead of being afraid or neglecting it. Whether organizations like it or not, external data helps sales companies understand better customers and their potential.
Digital Data
Big data is one of the most popular digital data types. According to Bridgwater, big data is a large volume of information created by human and machine-generated processes and is unable to fit into a standard database for processing and analysis. It enables machine learning and can contribute to artificial intelligence (AI) progress. By analyzing big data, marketers are able to understand user patterns, and AI blocks predict how a certain pattern might happen in the future. For example, in the streaming world, companies such as Spotify apply digital listening data to discover that clients are not listening to music the way they did several years ago. People are looking for music that is suitable for their “moments” or moods, and the most played playlist based on the “moments” is running, which Spotify then uses the data to shuffle music based on beats per minute.
The trends that promote the digital data increase vary globally, and marketers use different strategies to analyze and benefit from available information. One of the evident outcomes of digital data is smart decision-making in business and marketing. Digital analytics are involved in multiple activities to strengthen their experience, develop new assumptions, and never forget their purposes and beliefs. The combination of knowledge, raw information, and meaningful data changes DEM because people can gather and analyze local data in real-time and make communication more personalized.
Primary Data
Primary data is a crucial type of information that is usually collected directly from main sources, people. The relevance of primary (traditional market) research in the age of big data becomes less popular because the modern generation has a shorter attention span while living a fast-paced lifestyle. People do not want to answer complicated questions as they find filling out surveys very time-consuming. Some business companies offer rewards for customers to fill out surveys, but these replies usually lack true feelings and actual preferences. As a result, such data does not represent the necessary experience, and traditional surveys are no longer effective in pursuing the initial goals.
Therefore, brands must make themselves available in multiple channels throughout the whole customer journey to form a deeper connection with their customers. Data and information have increased as new tools and technology were created. Big data has become increasingly popular in providing market insights that companies need, and machine learning has quickly replaced the worth of traditional market research with primary data. Swinscoe recommends not rejecting the idea of traditional market research but using primary data wisely. For example, marketers may increase their direct communication with customers, shorten their question lists, and focus on clear feedback.
Qualitative Research
Qualitative research may gain different forms, and conducting an interview is one of the common methods. To complete this week assignment, it was necessary to talk to a real person and gather information about some practical experience and supermarket shopping habits. The key themes that emerged from this interview included the frequency of shopping, the choice of a store and products, and the conditions under which preferences could be changed. For example, it was discovered that an interviewee was interesting in shopping at the local store due to its nearby location and access to the necessary products. The quality of goods, services, and prices were high and reasonable, which made the person purchased once a week.
In fact, this interview turned out to be an interesting experience for me as a researcher. I felt excited about what the interviewee answered and how I could use this information in the future. The discussion did not take much time because all questions were clear, and the answers were not hard to understand. Probes and other additional preparations for this communication facilitate communication and word choice. The benefits of qualitative research were an understanding of the participant’s attitudes toward the offered topic, clear marketing insights, and the evaluation of the personal experience.
Week 9 Discussion: Measurement and Surveys
Despite the existing technological achievements in the marketing industry, the worth of surveys has to be underlined. There are many ways of how a survey can be organized, and modern people prefer to choose between telephone, mail, face-to-face, and online surveys. To measure constructs that are important to marketers, it is expected to work with large populations. Therefore, telephone surveys are applicable due to their easy accessibility and random generation. Mail surveys attract the attention of researchers and marketers due to their convenience and universality. However, in both cases, people may not want to participate in such studies and reject this idea as it is time-consuming or even expensive. A high price is also a challenge for personal communication, but when a person is asked to participate in the study, it is better to talk directly and get a chance to convince. Online surveys may need additional technical preparation, and not all marketers are good at online communication. However, additional training is enough to improve the situation and achieve the desired results.
In measuring marketing constructs, surveys are effective as they allow choosing the necessary boundaries (specific questions with particular answers). The marketer can prepare for answers and use primary data for a specific purpose. Participants, in their turn, should not think about options but observe the offered material and pick the one that meets their needs or interests. Marketing surveys are helpful tools for businesses to strengthen their positions, minimize risks, and discover potential threats and opportunities.
Data Visualization
The creation of valuable and actionable insights is critical for marketing, and data visualization is the step to success. According to David McCandless, data visualization is the possibility to see the patterns and connections that matter in business. When a solid design is chosen, information makes more sense and clarity to the issue. Some companies find it reasonable to present data in a graphical format or offer pictures to show evidence that can no longer be ignored. Some people cannot accept reality when only words are used. However, as soon as an image is offered, attitudes may be changed.
Data visualization is an effective means to deliver a message and use eyes to see patterns. Organizations tell their stories using the most appropriate words and sharing experiences. However, if there is no visual support, it is not always interesting to listen to words without observing emotions and real objects. This method of sharing information specifies the areas of attention and improvement, compressions knowledge, and influences customer behaviors. Visualization is an opportunity to see what others see and think about it. In marketing, information and emotion exchange plays an important role because not all people are ready to spend their money on something they do not know. Still, if they observe possible experience and service outcomes, they are eager to find some time and make a choice.
Overall Reflection
This course becomes a solid opportunity for me to improve my understanding of marketing research and the worth of different types of information for the development of interpersonal relationships. It is not enough to find some data and make sure to use it correctly in the study. Students have to understand that data may be gathered, manipulated, and shared in a variety of ways. Therefore, its analysis plays an important role in many processes in the workplace. My views about data and marketing have been considerably changed, which allows developing new skills, discovering additional Data Empowered Marketing (DEM) facts, and getting prepared to start my own business.
One of the most evident changes in my education during this course is related to how I should view data and marketing processes in general. Sometimes, it does not take much time to gather some information from customers and apply it to different working purposes. However, there are situations when appropriate and credible data is hard to find. Therefore, employees have to cooperate with stakeholders and potential clients at multiple levels to make sure that communication is effective. I realize that from now I cannot ignore any process that brings some new information to my practice because DEM is my chance to understand customers’ motivation, interests, and behaviors and optimize my performance.
Either as a part of a team or a leader, I have to enhance my skills and knowledge about DEM and my contributions to the chosen practice. I have already made a decision to strengthen my maturity in the development of two-way consumer interaction. During the course, I conducted research based on a survey. I had to talk to people and gather their responses for further analysis. Today, it is possible to use radio, social media, and telephone as the most common systems of communication. However, my task is not to create monologues for customers to make sure they use my services or products. I should achieve excellence in developing interesting dialogues where I listen to people, make some notes about their preferences, and conclude about what I can do for my clients.
The application of DEM is characterized by many significant take-aways and learning. From this course, I was able to receive several critical lessons. For example, any marketing expert should never try to limit the sources of information. DEM success lies in the possibility of working with a variety of audiences. As a leader, I must organize diverse teams and unites them with common purposes and missions. As a team member, I will support my colleagues and give all the necessary explanations gradually. Another important issue is the introduction of marketing communication strategies like the right message to my audience to promote brand experiences. In other words, my major achievement is the recognition of data as a basis for my future relationships with clients and colleagues.
DEM is closely related to my future in marketing. Relying on the knowledge that I obtained during the course, I could investigate all available options for me to become an owner of my business. Now, I know that the role of information in business is to help leaders decide and use facts, not just some guesses. Communication with people is never a challenge but a primary goal in the field of marketing. Given the rising accessibility of data, the future of marketing is hard to predict because it becomes impossible to keep information secret. Still, my marketing strategies should respect people’s privacy and the desire to choose and share.
Reference List
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