loader image

4 Data-Driven Marketing Strategies for Small Businesses

by Jan 10, 2024Insights0 comments

In today’s fast-paced digital landscape, small businesses face unique challenges when it comes to marketing. Limited budgets, rising marketing costs, and fierce competition make it imperative to make every marketing dollar count. That’s where the power of data-driven marketing comes into play.

By harnessing the insights gleaned from data, small businesses can optimize their marketing efforts, reach their target audience more effectively, and achieve better results. 

In this guide, we’ll explore four data-driven marketing strategies for small businesses. Whether you own a coffee shop, dance studio, or dog daycare, these insights will help you flourish in a dynamic and competitive marketplace. 

1. Segmentation

Small businesses can use data to segment customers based on shared characteristics, behaviors, and interests. This practice allows for detailed audience targeting, making it easy to develop campaigns that resonate with customers. 

Most small businesses will segment their audience according to: 

  • Demographics: This type of segmentation involves categorizing consumers based on demographic factors such as age, gender, income level, education, marital status, and occupation. Different demographic groups often have distinct preferences and needs. For example, if you run an online clothing store, you can tailor your product recommendations differently for Gen Alpha and Gen Z than for older age groups.
  • Behaviors: Behavioral segmentation involves analyzing customer behavior, such as their past purchase history, browsing habits, interactions with your website, and engagement with previous marketing campaigns. You can create segments like “frequent shoppers,” “cart abandoners,” or “product page visitors” to send personalized messages or offers that align with each group’s behavior and interests.
  • Geographic location: Dividing your audience based on their location, such as country, state, city, or even specific neighborhoods, can be effective for businesses with physical locations. For instance, a restaurant can send targeted promotions to residents in its vicinity or create region-specific content based on local events and interests.
  • Psychographics: Psychographics refers to customer values, beliefs, interests, hobbies, personality traits, and attitudes. By creating segments like “health-conscious individuals” and “outdoor enthusiasts,” a sporting goods store can tailor their marketing messages to resonate with unique lifestyles.

If your database is missing any of this information, consider conducting a data append. Appending data is the process of using third-party sources to update or add information to your consumer database. With more complete data at your disposal, you can create more tailored and relevant marketing efforts, improve customer engagement, and increase the return on investment (ROI) of your marketing campaigns.

2. Retargeting 

Retargeting, also known as remarketing, is a digital advertising strategy that allows businesses to re-engage website visitors who didn’t take a desired action, such as making a purchase or filling out a contact form. Here’s an example of how the process can work for a retail store:

  • Implement tracking pixels: Tracking pixels are small pieces of code provided by advertising platforms like Google Ads. When installed on a website, they track consumer data, including pages visited, items added to the cart, and bounce rates.
  • Create retargeting campaigns. Create retargeting campaigns based on the actions tracked by pixels. For instance, if a visitor adds a scarf to their shopping cart but doesn’t complete the purchase, you can set up a campaign specifically for cart abandoners. That way, when they leave your site, they will see ads for the product they left behind. 
  • Visitors see your ads. As visitors browse other websites and social media platforms, retargeting allows you to display your ads to them. These ads act as reminders and incentives for them to return to your online store and make a purchase.

For best results, your retargeting ads should be visually appealing, relevant, and attention-grabbing. Use high-quality images, compelling ad copy, and a clear call to action (CTA) to encourage users to take the desired action. 

3. A/B Testing

A/B testing, also known as split testing, is a valuable technique for optimizing marketing campaigns. It involves creating two versions (A and B) of a marketing asset and measuring their performance based on a specific goal. 

To begin, determine which aspect of the marketing campaign you want to improve. For example, let’s say your dog grooming business wants to increase the click-through rate (CTR) of a promotional email. You could then take these steps to conduct A/B testing: 

  • Select the variable to test. Identify the element you want to test. In this case, you decide to test the email subject line to see if it has an impact on the CTR. You create two versions of the subject line: Version A: “Get 20% Off Your Next Pet Grooming Session!” and Version B: “Exclusive Offer: Save 20% on Pet Grooming Today!”
  • Randomly divide your audience. Split your email list into two equal, random segments. One segment will receive Version A of the subject line, and the other will receive Version B. Ensure that the rest of the email content, including the call to action and the landing page, remains the same for both groups. This isolates the subject line as the only variable being tested so you can attribute a change in CTR to the subject line alone.
  • Measure the results. After sending out the email campaign, monitor the performance of both versions. Keep an eye on the CTR for each group. Here’s what you might find: Version A resulted in a 10% CTR, whereas Version B resulted in a 25% CTR. Therefore, you can conclude that the latter subject line is more effective at driving engagement.

Keep in mind that A/B testing is an iterative process, meaning you will need to continually conduct testing to achieve better results over time. 

4. Performance Tracking

Performance tracking plays a crucial role in data-driven marketing for small businesses, providing a continuous feedback loop for evaluating the effectiveness of marketing strategies. 

Performance tracking involves monitoring key performance indicators (KPIs), such as:

  • Customer Acquisition Cost (CAC): To calculate CAC, divide the total marketing and sales expenses by the number of new customers acquired during a specific period. A lower CAC indicates that your business is allocating its resources effectively.
  • Conversion rate: Measure the percentage of leads who take a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. This calculation involves dividing the number of conversions by the total number of visitors or leads.
  • Customer Lifetime Value (CLV or LTV): CLV represents the total revenue a business can expect to generate from a single customer over the course of their relationship. To calculate CLV, subtract the customer acquisition cost from the average revenue generated per customer. A higher CLV indicates that a business is not only acquiring customers but is also retaining and maximizing their value over time.

To streamline the process of monitoring campaign performance, consider leveraging industry-specific marketing software. In addition to tracking the metrics listed above, these solutions will provide insights that pertain to your business’s unique needs and goals. For instance, a kennel owner might benefit from using Gingr’s dog business software, as it tracks relevant information like appointments, occupancy rates, and inventory levels. 


The key to success in data-driven marketing is to remain committed to ongoing learning, adaptation, and effective data usage. With the right approach, your small business can unlock new opportunities, build lasting customer relationships, and chart a course toward sustained growth.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

A piece of paper with data and graphs on it.