Is Data in Silos A Big Threat For Advertising Dollars?
Being a modern-day marketer in today’s competitive marketplace is a tough job. It would help if you had more visibility and reach your users more efficiently. Luckily, you already have several marketing channels at your disposal to take care of the marketing activities you are carrying out.
While you are using multi channel marketing technique to reach your users, you also generate a considerable amount of data about them. Moreover, you must also be using this information and designing your future marketing campaigns along with data-driven strategies. Yet, can you be sure that your marketing campaigns are using all the actionable insights from the data you generate? Or is there still room for improving the intelligence gathered from your data?
No wonder only 49% of marketers feel that they can leverage the data-informed insights to strategize their future marketing campaigns. However, generating such an amount of user data without utilizing its full potential seems like such a waste. It is like storing the information in silos, but not leveraging them effectively.
As a marketer, your task is to not only generate insightful data about your users but also to use them to improve the performance of your marketing campaigns. This would be nearly impossible to achieve unless you let your data silos interact.
What is a data silo?
By definition, a silo is a giant container, used for storing bulk material. When you are communicating with your users through multiple channels, you generate a massive amount of data. These channels act as your data silos and lose much efficiency if they don’t interact with each other.
In other words, a data silo is a circumstance where a set of data is accessed only by specific groups of people, without any exchange of information among themselves. Therefore, one of your marketing channels might have accurate information about your users, which the others don’t have. However, since there is no exchange between these channels, you cannot leverage the data efficiently.
Understanding the impact of data silos are particularly important. It improves the resonance of your business with your users by increasing users’ experience and engagement. Additionally, it lets you know the most prominent user touchpoints and leverage them accordingly. As you learn this, you can optimize your marketing activities and budget to improve your conversion rates too.
The impact of data silo
The impact of data silos can be quite profound when they are not interacting with each other. The following are the prime reasons for data silos being the biggest threat to marketers in 2020:
1) Deviation in understanding the data value : Reduced targeting parameters and less-optimized segmentation
2) Disconnected marketing communications : user cannibalism, random product display without having complete insight into user interests
3) Marketing budget and ROI : Increase in marketing budget due to the disconnect between data from different channels, reduced ROI due to an increase in budget in communicating with unresponsive or uninterest users.
Hence, if your data remains in their respective silos, it will create a more significant threat for you. Unless your data is unrestricted and is interacting with each other, you would not gather many actionable insights from them. Therefore, you need to break the data silo and make more of your marketing activities.
However, breaking the silo is quite tough. This is primarily because of the following reasons:
1) Your marketing channels or platforms are different
2) Data is from either CRM channels or programmatic channels, but not both
Breaking the silo
Introducing Engage360 omnichannel marketing platform, which combines both the capabilities programmatic and CRM channels. It helps you to communicate with your users through CRM channels, as well as programmatic networks. CRM channels let you engage your users for free, and programmatic channels allow you to leverage the multiple ad networks through various publishers. It also has a provision of creating user journeys over numerous touchpoints, depending upon the users' interests and activities.
Further, the platform collects data from both kinds of communication channels and lets them interact with each other. With these capabilities, data analysis becomes much more manageable. The exchange of information across channels allows you to gather more actionable insights about your users.
Let’s take an example here. Let’s say you are running an ad over a programmatic channel. Subsequently, you send another communication over some other channel, using some different content and gather their responses. Depending upon their action, you can choose to send further notifications to continue to engage them until they convert.
Engage360 helps you avoid user cannibalization or repetition of marketing messages over the same and across channels. Therefore, the message doesn’t become intrusive, and the users get a better experience while receiving communication as they are relevant. Moreover, their interactions, response, and activities are gathered by the platform, which can be used across channels for future operations.
Now, since your data flows freely among channels, its value increases. Moreover, the communication becomes more connected across touchpoints and provides a seamless user experience. Finally, leveraging the user data and the choice of marketing channel also becomes more comfortable. Therefore, the overlapping of communication reduces, and marketing ROI increases.
The potential of having data-driven marketing intelligence is crucial to handle the big data associated with your marketing activities. However, unless there is a connection between the channels themselves, the data can turn out to be your biggest foe.
Want to know more about Engage360? Please write to us at email@example.com for product details and demo.