Putting the Customer at the Center: The Power of Data Storytelling
Data storytelling goes beyond mere offer placement, instead, it creates a sense of being understood and valued by brands By effectively utilizing data, companies can craft compelling narratives that resonate with customers on a deeper level
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Every brand understands the importance of data in providing deeper insights into customer attitudes and behavior. However, beyond the raw data that captures customer interactions with a business, there lies a multitude of opportunities to enhance marketing through the art of data storytelling.
Download the guide "Starting Your Data Storytelling Journey" to learn how smart brands can use data to create personalized campaigns that focus on the customer's relationship with the brand, rather than traditional appeals to segmented audiences.
Georgia Gkolfinopoulou, a marketing strategist and CRM specialist at Marigold, recently received a prime example of effective data storytelling in her inbox. A well-known food retailer informed her that she was among the top 20 people in her area for purchasing healthy produce. This message not only resonated with her but also motivated her to continue buying healthy food products from the brand. "By analyzing their data, they were able to make me feel really good about my choices and incentivize me to keep purchasing healthy food from their stores, potentially moving up the leaderboard," she explains.
Getting started with data storytelling
The distinction, as she clarifies, between a conventional marketing campaign and a data storytelling effort is evident. Rather than simply recognizing the products she purchases by including similar items in a marketing email, the data was utilized to construct a narrative that made her feel acknowledged and understood.
Each data storytelling campaign will differ significantly between brands and customer segments. The key is to understand the company's goals and utilize data analysis to craft a story that will help them achieve those goals.
Gkolfinopoulou advises, "The best approach is to begin with the desired outcome and then strategize backwards. It's a process of reverse engineering."
Once the desired customer behavior is identified, the necessary data collection and analysis can be determined. This will then inform how the information is presented to customers.
Take care with data
Understanding what concerns customers is important, but it is equally crucial to identify the factors that are likely to influence them. These factors could range from price and early access offers to the sense of contributing to a good cause. These insights will shape the brand's objectives and the messaging of the campaign. The key is to avoid overwhelming the audience with excessive data and instead focus on delivering a clear and simple message.
When using data in a sophisticated manner, it's important to avoid being intrusive by appearing to have too much personal information about an individual. Care should also be taken when using spending data. While it's okay to inform someone that they are the top latte lover in their town, revealing that they are the highest spender on lattes may lead them to consider cutting back.
Furthermore, when data is so specific to a person's relationship with a brand, digital storytelling necessitates a careful approach to capturing and using information, advises Britt Fetterhoff Miller, digital marketing strategist at Marigold. "Maintaining ethical practices in handling user data is essential. Companies must prioritize the well-being of their customers," she says.
Tell your company’s story
Prior to collecting data, it is crucial to be transparent with customers about its intended use and obtain their consent. Customers must be reassured that their private data and sensitive information will not be exposed through visualizations. This is particularly important in the context of cross-channel campaigns and the increasing need to identify individuals both offline, such as in a physical store, and online.
Many companies may not realize that their own company's performance and history can be a valuable resource for creating an engaging narrative through data storytelling. This is especially beneficial for brands with limited customer data, as they can use their own company data to convey important information about their business operations and why customers should choose their products or services. Additionally, data storytelling is an effective way for brands to communicate their environmental, sustainability, and governance goals without needing extensive data on each individual customer.
Companies can express gratitude to their customers, highlighting their contributions to environmental sustainability and the quality craftsmanship behind their products or services, rather than solely promoting sales. By utilizing data storytelling, businesses can strengthen customer loyalty and demonstrate to consumers that their spending decisions make a positive impact. This approach not only aims to boost revenue and prevent customer turnover but also fosters a connection between consumers and the brand based on shared values.
To find out how you can benefit from data storytelling, take a look at Marigold’s recently published guide, ‘Getting Started With Data Storytelling’.
