Better Results From Your Marketing (Without Guesswork)
In our previous guide, (Understanding Marketing ROI) we looked at how three key factors determine whether your marketing makes money:
- Your ROAS (how much revenue your ads bring in)
- Your Gross Margin (how much profit you keep from each sale)
- Customer Lifetime Value (how much customers spend with you over time)
Data-driven marketing helps you improve all three at once. It’s simply about using actual results to make smarter decisions, rather than going with hunches or assumptions.
What Is Data-Driven Marketing?
Think of data-driven marketing as making decisions based on what’s actually happening, not what you think might happen. It’s like having a sat nav for your marketing – you can see what’s working, what isn’t, and how to get better results faster.
How Data Improves Your Marketing in Three Key Ways
1. Finding Your Best Customers: Better Returns on Ad Spend
Data helps you discover:
- Which people are most likely to buy from you
- Which platforms give you the most customers for your money
- Which ads people respond to best
- Where your customers are located
Real Example: If your ads are currently bringing in £15,000 in sales from £3,000 in ad spend (5x return), better targeting could increase that to £21,000 (7x return) – boosting your profit from £500 to £2,300 without spending more.
2. Focusing on What Sells Best: Higher Profits Per Sale
Data shows you:
- Which products make you the most money
- Which prices give you the best balance of sales and profit
- Which product combinations customers buy together
- What customers value enough to pay more for
Real Example: By promoting products with 40% profit margins instead of 30%, you could increase your net profit from £500 to £2,000 with the exact same ad spend.
3. Keeping Customers Coming Back: More Sales Over Time
Data helps you:
- How to welcome new customers so they stick around
- When to follow up with previous buyers
- Which customers are most likely to become regulars
- What keeps people coming back for more
Real Example: If you discover that sending a special offer 2 weeks after someone’s first purchase doubles their chance of buying again, you could easily double your total profit from each new customer you acquire.
The Magic of Combining All Three
The real power comes when you improve all areas at once:
| Old Way | New Way |
|---|---|
| Finding customers: Hope the right people see your ads | Finding customers: Target the exact people most likely to buy |
| Selling products: Promote whatever’s new or on sale | Selling products: Focus on what makes you the most profit |
| Customer loyalty: Wait for people to come back | Customer loyalty: Actively encourage repeat purchases |
| Result: £500 initial profit + maybe some repeat business | Result: £2,800 initial profit + much more repeat business |
Getting Started: Simple Steps
You don’t need complicated systems to start using data. Begin with:
- Look at what you’re currently measuring
- Identify what you’d like to know about your customers
- Set up simple tracking for your most important numbers
- Check your results regularly
- Try small improvements one at a time
How We Can Help
We combine marketing know-how with practical data skills to help you:
- Set up simple ways to track what matters for your business
- Spot patterns in your sales and marketing that you might miss
- Identify your biggest opportunities for quick improvements
- Improve your ads based on real results
- Show you clear reports that make sense and help you make decisions
Ready to make your marketing more effective with simple, practical insights? Let’s talk about how we can help your business grow with data that makes sense.
