Marketing Analytics: Definition, Capabilities and TipsWebsfarm_ltd
In the modern marketing environment, accurate analytics is more important than ever.
Consumers have become exceedingly critical when selecting the branded media they engage with, and conversely, the media they ignore. In that sense, marketers today require the quantitative tools necessary for demonstrating the impact of marketing spend on company performance.
However, according to HubSpot, only 35% of marketers said that understanding the ROI of their campaigns is “Very Important” or “Extremely Important.”
If brands want to grab and hold their ideal buyer’s attention, they will need the help of analytics tools to create targeted personalised ads based on distinct personal interests, rather than extensive demographic affiliations. This will enable marketing teams to distribute the right ad, on the right channel, at the right time to help convert customers and move them down the sales funnel.
What is marketing analytics?
Marketing analytics is the practice of recognising and identifying significant patterns in data to guide marketing decisions. The patterns marketing analytics reveals include such things as how a campaign influenced conversions, consumer behaviour, regional preferences, creative preferences and much more.
In other words, marketing analytics helps businesses make data-informed decisions to optimise their marketing spend on the most successful pursuits.
Marketing analytics capabilities
Consider these key features and capabilities of marketing analytics software when implementing a marketing measurement solution:
- Brand Measurement Capabilities
- Real-time Analytics and Insights
- Individual-Level Data
- Online and Offline Attribution Metrics Correlation
- Contextualised Insights
- Annual Media Plan Suggestions
The benefits of using marketing analytics
Marketing analytics can help inform businesses as to what messaging or creative campaigns resonate with their customers. It tells you which products customers are buying and which products they have researched in the past. With marketing analytics tools, companies can also quickly discern which ads are leading to conversions and which are ultimately ignored.
Improved customer support
Analytics tools can help expose areas of the buyer’s journey that could be improved or simplified. The software helps businesses understand where their customers are struggling, and how to better serve them.
With the help of data analysis, marketers can select where to display messages intended for particular consumers. Analytics helps answer the questions of which digital and social channels their customers prefer, which channels are driving the most sales, and what type of content resonates with consumers the most.
Predict future results
Because marketing analytics gives marketers an informed understanding of why a campaign worked, they can then apply that knowledge to future campaigns for increased ROI.
Product development trends
Analytics helps offer businesses insight into the types of product features consumers want. Marketers can then relay this information to product development teams to keep innovating on behalf of the customer; demonstrating their loyalty to a customer-centric culture.
Product intelligence entails taking a close look at the brand’s products and determining how those products compare to others within the market. Organisations can better understand the differentiators and competitive advantages of their product by conducting customer surveys, speaking to consumers, or polling target audiences. In doing so, teams can better position products to the unique customer interests that drive conversions.
Why should you invest in marketing analytics?
According to a recent study by McKinsey, data-driven companies are:
- 23x more likely to succeed in customer acquisition
- 6x as likely to retain their existing customers
- 19x as likely to be profitable
Advanced analytics platforms go beyond measuring consumer engagements to offer an understanding of brand equity as well as how certain audience divisions react to creative elements. This helps marketers better regulate brand-building ROI, as well as how to further personalise branded experiences.
How to start the marketing analytics process
Here are four steps to take at the initiation of your analytics process:
- 1. Know what you want to measure: Understand what metrics you’re trying to measure (conversion rates, leads captured, brand recognition, etc.), the problem you’re trying to solve, or the insight you are trying to gain when beginning to analyse your data.
- 2. Set up a benchmark: Establish what a successful marketing campaign looks like for your brand. This will determine which metrics you’ll collect and measure.
- 3. Assess your present abilities: What are your company’s weak spots? What initiatives are you implementing today? Understanding where your brand lies can help you figure out where you want to take it next. By investigating your weak points, you’ll only strengthen your overall programme.
- 4. Utilise a marketing analytics tool: As datasets grow, marketing analytics tools will only increase in importance. To gain a holistic view of which campaigns are successful, which types of media convert, and which messages resonate the most, the deployment of analytics tools is critical.