Now a global household name, Coca-Cola began as a simple tonic for common ailments in 1886 at a local pharmacy. The ubiquitous soft drink, Coke, is now a single product within a diverse beverage portfolio of more than 200+ brands. 

There’s another product in the portfolio called Cappy. Ever heard of it? Chances are, unless you live in or have visited Europe, Africa, or the Middle East, you're unfamiliar with the brand Cappy, let alone the flavor.

This example serves as just one instance of how Coca-Cola, a company that spends an average of $4B annually on advertising, considers culture, history, and geography to know how to meet its market's needs.

How does a company with over 200+ brands stay ahead of the curve while keeping its customers front and center? Experimentation. Every great experiment begins with a creative hypothesis based on initial research. Then, they turn to data to help inform where the theory goes. 

Data-driven campaigns are crucial in today’s marketing landscape. Whether you’re a scrappy nonprofit or a high-growth company, investing in market research can save your sanity and budget. Spoiler alert: it’s about ditching the guesswork and backing up decisions with insights you can act on.

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Trial and error vs. data-driven strategy

The guessing game: risky business

Relying on intuition alone isn’t the best way to craft a thoughtful marketing campaign. Banking on one idea before pressure testing can lead to major budget, timing, and public perception setbacks. Campaigns reliant on guesswork often lead to inconsistent messaging, unengaged audiences, and a skewed understanding of what people want. Ultimately, not knowing your audience costs way more than investing upfront in research.

Does throwing spaghetti at the wall do anything besides create a massive mess in the kitchen? There is a time and place for it. This “see what sticks” approach can be practical when A/B testing creative and messaging to determine if your audience prefers animation over video or deeply researched case studies over user testimonials.

Including a ‘research’ window to test various creatives and messaging limits the range of “spray and pray” to smaller subsets to help inform and guide a more significant investment in creative and channel selection. Pairing up intuition with information leads to recipes that don’t explode in the kitchen and results that impact returns.

The data-driven path: targeted and tuned in

Whether it’s a for-profit launching a new product or non-profits fueling their cause, the first objective a business or organization needs to fulfill is generating awareness about its work to the right audience. 

When your strategy starts with market research and solid data-driven campaign strategies, you’re no longer just “trying out ideas.” Instead, you’re equipped with data highlighting precisely what makes your audience tick. With insights into demographics, pain points, and interests, behavior patterns, and motivations, your campaigns are no longer shots in the dark—they’re laser-focused efforts with a high probability of success.

Research, surveys, and historical insights light the way so marketers aren’t working in the dark. You already know who you're targeting, what resonates with them, and how to reach them most effectively. It’s the difference between using a GPS and driving around in circles hoping you’ll reach your destination eventually.

But what’s the real benefit of going data-driven?

1. Personalization leads to payoffs‍

Time is money in the marketing world, and data helps ensure your dollars are directed where they’ll make an impact. Research upfront may have a price tag, but studies show companies that prioritize research see higher revenue growth. 

According to a McKinsey & Company study, personalization matters more to the consumer than ever. Their research shows that personalization most often drives a 10% to 15% revenue lift (with company-specific lift spanning 5% to 25%, driven by sector and ability to execute). In other words, the more skillful a company becomes in applying data to grow customer knowledge and intimacy, the greater the returns. 

Let’s revisit Coca-Cola. The company’s approach to its groundbreaking "Share a Coke" campaign was far from random. They utilized extensive research and data analysis to identify the most famous names in each market where the campaign was launched, then personalized each bottle to match. This meticulous process ensured that the names selected would resonate with the local population, maximizing the campaign's impact and reach. 

The result? Sales in the U.S. jumped by over 2% and triggered a viral trend, all because they relied on research instead of throwing something out there.

2. Better insights lead to better engagement‍

Data-driven strategies help brands craft messages that resonate. Imagine knowing your audience's pain points and tailoring content to address their needs. This boosts engagement and builds trust with your audience. They see you as an organization that gets them, not just one spamming them.

Every year, Spotify turns listeners’ data into easily shareable personalized stories. In 2017, 30 million Spotify users accessed Wrapped; by 2021, that figure had grown to more than 120 million. More than 400 million posts were made on X, formerly known as Twitter, about Spotify Wrapped in the three days following its 2022 release, a 15% increase from the year before. 

By using insights to create a memorable experience, Spotify drastically moved the needle on engagement without blindly testing ideas.  

3. Data now, smarter decisions later

When you gather and analyze campaign data, you build a goldmine of insight. This isn’t a one-and-done—it’s a system for continuous improvement. Instead of guesswork each time, you’re learning exactly what works, refining your message, and staying a step ahead. That means less guesswork next quarter and the one after that.

Guesswork campaigns are not just inefficient—they can backfire. Pepsi’s infamous 2017 ad featuring Kendall Jenner serves as a cautionary tale. Lacking the right insights, the brand missed the mark on a social issue, facing intense backlash and pulling the ad within 48 hours. This mistake highlights how critical it is to align marketing with your audience’s values and expectations.

For nonprofits, making missteps can damage trust and credibility with supporters. Imagine a food bank running a campaign for meal donations without researching community needs or preferences. If the message doesn’t align, it could lead to missed opportunities to help more people or alienate potential donors. In contrast, thorough research into community needs enables nonprofits to share stories that resonate, creating campaigns that move people to act.

Ready to invest in research?

If you’re ready to invest in market research, here are a few ways to get started:

• Conduct surveys with current customers or supporters to learn more about their preferences and motivations.
• Analyze past campaigns to identify what worked well (and what didn’t) and use these insights to shape future efforts.‍
• Tools like Google Analytics, social media insights, and market research reports guide strategic choices on content, platforms, and timing.

Turning insights into action

As with any investment, returns are an important consideration. Investing in market research can yield robust datasets, but then what? The process we use at CommonAlly turns data insights into informed action strategies.

Reveal critical insights into what drives your supporters or customers. Do they respond better to email or social media campaigns? Are they more likely to donate after attending an event or receiving a newsletter? Gathering this data helps refine future campaigns and keeps supporters engaged in the long run.

Find new ways to make an impact. By analyzing community trends, surveying stakeholders, or reviewing past campaigns, identify gaps or new initiatives that align with your mission.

Gain a clearer understanding of the market. Understand what similar organizations are doing; adopt best practices and avoid common pitfalls.

Data-driven marketing is all about control. Start with research and let insights shape outreach strategies, extend the lifetime value of marketing dollars, and deliver impactful messages that hit home. Whether you’re a for-profit aiming to increase customer lifetime value or a nonprofit working to maximize donations, data is your best tool for success.

So go ahead—ditch the guesswork. With research as your foundation, every campaign you launch is positioned for success.

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