Marketing analytics uses math to extract useful information from marketing data. It achieves this by identifying patterns that help businesses better understand how marketing strategies are performing and adapt their strategy accordingly.
Through marketing analytics, businesses can better understand customer behavior and how their brand is being received. Analytics can also be used to make predictions about upcoming industry trends.
When companies invest in marketing, they want to be sure that it fulfills its purpose. Different tools and processes are used in marketing analytics to evaluate campaigns against specific criteria such as return on investment and overall effectiveness.
Often, marketing analytics requires compiling and comparing data from a range of different sources. The processes used transform this raw, disorganized data into easily understood information that drives company decision-making.
Data is widely available in the digital age, but the real value comes from interpreting it. This is what marketing analytics does. It doesn’t just give you the numbers; it tells you what the numbers mean in practical terms.
Using the results of marketing analytics processes, companies can make informed choices that ensure they maximize their marketing budget and use it as efficiently and impactfully as possible.
Why do marketing analytics matter?
Marketing analytics matter because the process maximizes the usefulness of data, which is an incredibly important resource in our increasingly digital times. The insights revealed by marketing analytics can be invaluable for business development.
They can tell companies what is right and what is wrong about their marketing campaigns, how many people they’re reaching and which groups of people they’re successfully converting into customers.
Without marketing analytics, companies’ decisions would be based on guesswork. Rather than having to imagine how audiences are responding to their brand and their marketing strategies, marketing analytics provides answers based on evidence. These answers may not align with expectations! Using the results of marketing analytics, a business can qualify the claims it makes. Companies with data sets from different mediums can efficiently work out whether their pay-per-click adverts or influencer marketing content is more successful. Armed with this information, a company can ensure that it’s spending money wisely on every marketing campaign it launches.
What are the basic concepts of marketing analytics?
The following concepts are crucial to marketing analytics:
Dimensions: Companies aim for a multidimensional understanding of their audience. To achieve this, they may analyze data about their customer base using different dimensions such as age, sex and nationality.
Metrics: A metric is the criteria that a company uses to gauge the success of its campaigns. On social media, the rate of follower engagement with marketing posts or the number of new followers gained would be appropriate metrics.
Marketing attribution models: Marketing attribution models are used to track the customer’s journey to understand better which touchpoints are successfully converting interest into sales.
How can marketing analytics help a business reach its goals?
Marketing analytics can help a business reach its goals in a number of ways. It empowers companies to:
- Perform thorough evaluations
Rather than base evaluations on instinct, marketing analytics provides the evidence required to assess how successful a marketing campaign has been. This is important because poor-performing campaigns can be cut short and reimagined based on the information available.
- Understand its audience better.
Businesses always want to understand their customer base better so they can more successfully cater to their needs and desires. Marketing analytics can tell a business who is engaging with their brand and who they’re still failing to reach.
- Inform future campaigns.
Marketing analytics provides information that can be used to improve on previous campaigns. The results of analytical processes can be very educational for companies. They can learn how they’re being received and perceived with a view towards making positive changes.
- Make predictions regarding industry trends.
As well as helping businesses to evaluate their previous campaigns, the results of marketing analytics can be used to make forecasts about imminent trends. This enables companies to stay ahead of the curve when it comes to marketing.
- Remain aligned with its goals.
By constantly evaluating marketing campaigns against specific criteria, companies remain focused on how their actions bring the business closer to its goals. Marketing analytics can provide statistics and a concrete framework for measuring progress.
Top tips for meaningful marketing analytics 200
- Ensure your data is of high quality.
Data is considered high quality when it’s accurate, comprehensive, current and relevant. A marketing strategy should consider how this data will be collected and how it will be used to inform future actions.
In other words, companies should know the questions that they want to answer in advance then gather the data that can be analyzed to uncover these answers.
- Use a range of techniques.
An assortment of analytic techniques will ensure that you extract all useful information from the data. The same data set can be mined to answer different questions. It can help you assess the performance of past and present campaigns and make predictions and plans for the future.
- Find different sources of data.
Data can be gathered easily online, but companies should also explore other methods of obtaining information. A good way for companies to strategize is to evaluate the data they’re currently collecting and look for gaps in the knowledge. Then, they can develop ways to fill these gaps and create a fuller picture of the company’s performance.
- Look at the positives and the negatives.
Data that has been processed using marketing analytics should provide information about what is going well and what could be going better. Companies should avoid focusing on one at the expense of the other as both elements contain important lessons for sustaining and growing the business.
- Take action.
Once businesses have gone to the effort of extracting these insights through marketing analytics, it’s imperative that they use them to make changes. Otherwise, the process has been a waste of time and resources.
Marketing analytics can play a crucial part in a company’s success, but only if the results are taken seriously. Companies must respond to the new understandings they uncover.