CHAPTER 2
Digital Data
& Data-driven
marketing
GROUP 6
TABLE OF
Learning objectives
Understand and distinguish different data sources and types
Comprehend the potential of data-driven marketing, AI, Big
CONTENTS
Data
Understand the basis of several marketing data analysis
techniques
01 02
Introduction to data- Application of data in
driven marketing marketing
Data-driven marketing Personalisation and mass customisation
Digital devices and data Application of AI and Big Data
Data collection Segmentation of customer and
Marketing automation customer relation
Data-driven Digital devices
Marketing and data
Data Marketing
collection automation
INTRODUCTION TO
DATA-DRIVEN
MARKETING
Historical development from traditional
marketing to data driven marketing
Advertising period Traditional marketing Marketing with data The Data-Driven
(1900-1960) (1960-1980) (1980-2000) Marketing Era
(2000 to present)
Advertising relied on loud At this stage, sellers began Businesses began utilizing This period marks the robust
messaging through newspapers, to do marketing in a more customer data for deeper development of social networking
radio, and TV.. with the motto meaningful way instead of insights, allowing targeted sites on the Internet (Facebook,
"whoever speaks louder wins". simply advertising advertising. This approach Twitter, YouTube…), a sharp increase
The 1930s were called the In the 1960s, marketing became crucial for survival in the number of smartphones, the
Production Orientation period moved to the Consumer in a competitive market. advancement of 3G and 4G
Orientation stage. technologies, and the emergence of
concepts like Big Data and AI
What is Data-
Driven Marketing?
Data-driven marketing is an Data-driven marketers leverage data
approach that optimizes analytics and the latest technology to
marketing activities based on all assess customer needs and predict
types and sources of data to make consumer behavior using data from
decisions, execute, and manage customers, markets, and business
strategies effectively. operations.
Develop personalized marketing strategies
that maximize return on investment
What is the digital devices?
DIGITAL Digital devices is an electronic tool that can create,
DEVICES send, share, receive, store, and show digital data.
Examples of digital devices are personal computers,
digital clocks, gaming consoles, and smartphones.
Digital devices have become an integral part
of our daily lives, shaping the way we
communicate, work, learn and entertain Why are Digital Devices
ourselves. From smartphones and laptops to Important?
tablets and smartwatches, these devices have
transformed the way we interact with In digital marketing, they are the primary channels
technology. In this digital age, understanding through which consumers interact with digital content.
the significance of digital devices is crucial for These devices not only deliver marketing messages but
navigating the modern world.
also collect valuable data that marketers use to refine
and target their campaigns.
DATA
SOURCES
1 INTERNAL DATA 2 EXTERNAL DATA
is facts and information that come is information that originates from outside the
directly from the company’s systems company and is readily available to the public.
and are specific to the company in External data is used to help a company develop
question. In almost every case, internal a better understanding of the world in which
data cannot be accessed and studied they are operating. Financial trends, customer
by outside parties without the express demographics, online search queries, and more
permission of the business entity. all help a company find the best ways to grow
and reach its target market.
DATA
TYPES
STRUCTURED DATA UNSTRUCTURED DATA
Main Searchable, usually text format, Difficult to search, many data formats,
Characteristics quantitative qualitative
Relational databases, data Data lakes, non-relational databases, NoSQL
Storage
warehouses databases, applications
Inventory control, CRM systems, Presentation or word processing software,
Use for
ERP systems tools for viewing or editing media
Dates, phone numbers, bank Emails, songs, videos, photos, reports,
Examples
account numbers, product SKUs presentations
DATA
COLLECTION
Data collection is the process of gathering information
or data from various sources to analyze and make
informed decisions. It's a key part of research, business
analysis, and decision-making in various fields. Data can
be collected through different methods depending on
the purpose, type of information, and tools available.
INSIDE THE ORGANISATION OUTSIDE THE ORGANISATION
Social network insights Social media listening tools:
Ex: Indicators from Google analytics Monitor, analyze, and respond to
Business activities conversations about your brand or
Ex: Operating reports, FRAC* - industry on social media
Frequency, Recency, Amount, and Purchased from 3rd party organisation:
Category of purchase - Digital Euromonitors market report: Provide
marketing excellence - what is stored comprehensive data and analysis on
in the database various markets around the world.
Data from internal research activities Data mining services: Help you
Ex: Survey, Interview, Data Mining extract valuable insights from large
datasets.
Metrics in customer experience and marketing analytics, helping businesses
understand customer feedback and improve their services.
The use of software and technology to
automate repetitive marketing tasks and
workflows.
The term currently used to describe a closely
related approach known as one-to-one
marketing.
Marketing automation techniques generally
involve a series of rules, which trigger
interactions with the customer via messaging
on email, smartphone notifications or web
personalisation.
Marketing automation technology has been
widely used across businesses to create rules
that schedule more relevant emails and
personalised communications on company
websites
Retargeting Ads
Ads can be automated to re-engage users who have OF MARKETING AUTOMATION
previously interacted with a website but didn't
Lead Nurturing
complete a purchase.
Example: An online store uses Google or Facebook
ads to show ads to users who added items to their Marketing automation platforms can track and score
cart but left without checking out, leads (potential customers) based on their behavior
encouraging them to complete and trigger automated responses or content
their purchase. suggestions to move them down the sales funnel.
Example: A software company uses a series of
automated emails to educate and nurture a lead
SMS Marketing over weeks, eventually leading them to sign up for a
free trial.
Businesses can automate text
Email Campaigns
message campaigns to send
reminders, promotional offers,
or alerts directly to customers’ Using platforms like Mailchimp, HubSpot, or
phones. ActiveCampaign, businesses can schedule and
send automated emails based on customer
actions or triggers
Increased efficiency
Automates time-
consuming tasks.
Personalization: Delivers
targeted messages to the
right audience. Consistency: Ensures
marketing efforts are
continuous and
Improved analytics: Tracks
consistent.
performance, helps analyze customer
behavior, and refines strategies
Enables businesses to automate tasks in the marketing and sales process to
deliver more relevant communications, typically delivered as personalised
emails and website messages.
Personalisation and mass
customisation
Application of AI and Big Data
Segmentation of customer and
customer relation
APPLICATION
OF DATA IN
MARKETING
PERSONALISATION &
MASS CUSTOMISATION
Increasingly, companies gather personal data through the
application of digital technology and then use it with the aim
of making the content appear more aligned to an individual’s
interests.
This approach enhances customer engagement, improves
conversion rates and fosters brand loyalty.
Adjust the type and frequency of
communications they receive
Set preferences for content they
A customer preference centre is a
are interested in
profile management tool where users
can:
Opt out of certain data uses or
communications altogether
It gives customers control over their data, fostering trust while reducing concerns
about manipulation. At the same time, it enhances marketing efficiency by targeting
only interested customers, minimizing wasted efforts and boosting engagement.
PERSONALISATION
74% of customers feeling frustrated by seeing irrelevant
content from brands. 79% of them won't consider an offer
unless a brand personalised it to their previous
interactions.
=> Focusing on personalising their experience.
Definition: Personalisation involves delivering tailored
content, product suggestions, or services to an audience
based on their behaviors or predictive analysis.
CONTENT PERSONALISATION EMAIL PERSONALISATION
Personalized social media content
engages audiences by tailoring messages Personalized emails use customer
and visuals to individual interests. data and email automation to lead
subscribers through the customer
Strategies like using CRM data to journey by giving them a more
personalize messaging, implementing personalized experience.
dynamic content in emails, and utilizing
live chat enhance audience engagement.
WEBSITE & APP PERSONALISATION
The process of creating customized
experiences for visitors to a
website. This allows companies to
present visitors with unique
experiences
Definition: The intensive use of information
about customers to deliver personalized
messages and experiences for each person.
Approach:
Data-Driven Segmentation
1-to-1 Marketing at Scale
Journey Optimization
AI-Powered Recommendations
Goal:
Improve customer experience while
keeping costs low.
Increasing customer loyalty and making
operations more efficient with automation.
Data Collection
It works by analyzing the behavior,
preferences, and interactions of
users to suggest relevant content
Similarity Computation
Core idea: people with similar interests
or behaviors in the past are likely to
have similar preferences in the future Recommendation Generation
One useful framework for understanding how companies utilize different types of
data is the Targeting Variable Pyramid. It is a framework that categorizes different
types of data based on their predictive power in determining customer response.
Unknown: no available data, making
prediction nearly impossible
Demographic Profile Data: age, gender, and
location but offers limited insights
Lifestyle and Psychographics: interests,
values, and habits
Attitude and Preferences: opinions and
brand inclinations
Behavioral Data is the most predictive, as it
reflects real customer actions
The higher up, the better businesses can understand
and target customers.
6. The role of AI and Big Data
Big Data is a high-level term
used to describe analysis
techniques and systems that
exploit the large volumes of data
that are now captured by
businesses.
Marketing applications of Big
Data exploit the different types of
data now collected when
businesses interact with their
audiences.
The two main benefits of Big Data for marketing are:
Identifying insights such as identifying success factors to
trends and patterns through make communications more
large analyses and complex relevant by improving
interrelated data sets, which can messaging – for example, by
inform future strategies and selecting the best timing, copy
tactics or offers.
Data Volume refers to the
The 3V’s of Big Data increase in data that is now
available for online interactions
with websites and social media.
Data Velocity shows how marketers
now have access to realtime data,
such as real-time analytics of
interactions on web and mobile sites
and also social media interactions.
Data Variety shows how new types of
unstructured data, including, again,
social media interactions, offer potential
too. This also suggests the potential of
integrating different sources of data to
gain more customer insight.
Meaning
BIG DATA
‘Big Data’ for marketing:
The main application of Big Data
‘Big Data’ refers to applications
in marketing is used to increase
to gain value from the increasing
the relevance of communications
Volume, Velocity and Variety of
using the marketing automation
data integrated from different
techniques. Techniques such as
sources. These enhance insight
predictive modelling are used to
to deliver more relevant
send more relevant, contextual
communications through
emails or web personalised
techniques such as marketing
banners to customers in order to
automation and social CRM.
generate response.
Artificial Intelligence
for marketing
Software and services that perform tasks previously
requiring human analysis and interaction. Marketing
applications of AI typically aim to improve business-to-
customer communications including targeting media,
personalised messaging and customer service
interactions
SOME AI APPLICATIONS IN MARKETING
IMPROVE LOYALTY AND
CUSTOMER VALUE
TYPES OF CUSTOMER LOYALTY
CUSTOMER LOYALTY
THE DESIRE ON THE PART OF THE CUSTOMER TO CONTINUE
TO DO BUSINESS WITH A GIVEN SUPPLIER OVER TIME.
EMOTIONAL LOYALTY BEHAVIORAL LOYALTY
Loyalty to a brand is Loyalty to a brand is
demonstrated by favourable demonstrated by repeat sales and
perceptions, opinions and response to marketing campaigns.
recommendations
FACTORS
AFFECTING
CUSTOMER
SATISFACTION
AND LOYALTY
CUSTOMER
SATISFACTION: THE
EXTENT TO WHICH A
CUSTOMER’S
EXPECTATIONS OF
PRODUCT QUALITY,
SERVICE QUALITY AND
PRICE ARE MET.
MEASURE TO DIFFERENTIATE CUSTOMER
BASED ON VALUE AND ENGAGEMENT
LIFETIME VALUE (LTV) RFM (RECENCY, FREQUENCY, AND MONETARY) MODEL
Is the total net benefit that a customer or group of Provides auto-segmentation and buckets users into categories
customers will provide a company over their total such as Loyal, Promising, At Risk, etc. based on their behavior.
relationship with that company
An NPS score measures customer loyalty by looking at
Modelling is based on estimating the income and their likelihood of recommending a given business.
costs associated with each customer over a period of
time, and then calculating the net present value in
current monetary terms using a discount rate value
applied over the period.
APPLY DATA ANALYTICS TO IMPROVE
CUSTOMER LOYALTY AND VALUE
Listen to consumers via digital media
ONLINE VOICE OF CUSTOMER (VOC) NET PROMOTER SCORE (NPS)
Qualitative assessments of the effectiveness of A measure of the number of advocates a company (or
digital presence based on direct customer feedback. website) has who would recommend it compared to the
They answer ‘who and why’ questions about how number of detractors.
customers interact with brands online.
An NPS score measures customer loyalty by looking at
Voice of the Customer (VoC) is the capture of their likelihood of recommending a given business.
what customers are saying about a business,
product, or service.
Voice of the Customer (VoC) is a term that
describes your customer’s feedback about
their experiences with and expectations for
your products or services. It focuses on
customer needs, expectations, understandings,
and product improvement.
CASE STUDY
Shopee is an online shopping platform and an e-
commerce marketplace headquartered in
Singapore. Shopee is now available in various
countries such as Singapore, Malaysia, Taiwan,
Thailand, Indonesia, Vietnam, the Philippines,
Brazil, Poland, and more.
Shopee Analytics
Shopee Analytics is a tool developed by Shopee that can analyze all factors
related to buyer and seller activities. This tool helps sellers gain a deeper
understanding of their business performance, enabling them to make
strategic decisions to improve sales and optimize their selling operatio
1.Customer Data
Collection and Analysis
External Data Internal Data
Social Data: Data from social Engagement Data: App & website visit
media platforms (preferences, frequency, interaction with emails & push
interactions) notifications, Shopee Live activity (watch
Competitor Data: Insights from time, comments, interactions).
competitors’ pricing, promotions, Information & Demographic Data:
and strategies. Personal information (name, gender,
Third-party Data & Advertising age), account type (seller/buyer),
Insights: Information from transaction history (payment methods,
advertising platforms, marketing average order value).
campaigns, and user interactions Onsite Behavior Data: Search behavior,
with ads. product views & time spent on pages,
Market Research & Industry abandoned cart data.
Trends: Consumer trends, Attitudinal Data: Customer ratings &
industry reports, and broader reviews, chatbot & customer service
market analysis. interactions, Net Promoter Score.
2. Personalisation
Shopee is renowned for its ability to
recommend highly relevant products
based on customers' purchase history,
browsing activity, and search behavior.
This strategy using customer data to
personalize website content, email
marketing, and advertising banners,
creating a unique shopping experience
that effectively engages and retains
customers.
3. Customer
segmentation
Demographic Behavioral Psychographic
Age Frequent Shoppers Search
Gender One-Time Buyers Purchase
Location Cart Abandoners Interaction history
4.Retargeting
Shopee utilizes behavioral data to run retargeting ads across multiple channels.
PREDICT
01 Augmented Reality in Shopping
AR technology enables customers to
03 AI and Machine Learning
Integrating AI and machine learning can
enhance user experience, optimize
visualize products in their environment,
delivery, manage inventory, and provide
enhancing decision-making for purchases
personalized recommendations, boosting
like furniture and cosmetics.
efficiency and revenue.
02 Growth of Online Commerce
The ongoing rise in online shopping and
04 Social Media as Sales Channel
Social media is becoming vital for e-commerce,
mobile device usage necessitates allowing direct sales through platforms like
optimizing websites for a seamless Instagram and TikTok, requiring strategies to
shopping experience retain loyal customers.
IT’S TIM E
TO G A ME !
Which is the definition of
Internal data and which
is External data?
Which is the definition of
structured data and which is
the definition of unstructured
data?
What is the primary goal of
A data-driven marketing?
To increase the number of
advertisements
B
To use customer data to
C enhance marketing strategies
To increase marketing expenses
D
To avoid digital marketing
What is an example of
A internal data?
Market trends from industry
reports
B
Customer surveys conducted
C by a company
Competitor pricing data
D
Social media mentions
Which of the following is NOT
A an example of marketing
Personalized email campaigns
automation?
B
Retargeting ads
C
Social media listening tools
D
Manual customer service calls
How can businesses measure
A Behavioral Loyalty?
By tracking purchase frequency
and customer retention rate
B
By monitoring emotional
C engagement and storytelling
effectiveness
By analyzing customer
complaints and resolution time
D
By relying solely on customer
satisfaction surveys
What are the two driver shape the
multichannel customer experience
and relevance, which determines
whether customers feel valued
and engaged.
What does NPS stand for?
THANK YOU!
