Marketing analytics is the field where we measure the effectiveness of our marketing campaigns by analysing the data related to those campaigns. This data could be the traffic generated on the website or any other customer related information. It helps us understand how our marketing plan is performing in the market. It also informs us on how we can further improve our relationship with our existing customers as well as make new customers. Marketing analytics is fast becoming a very important field for organizations and that is why most business schools are offering specialised marketing analytics programs to its students.
Marketing analytics is important to today’s marketers because it lets them measure the impact of their work. Measurement of a campaign means a proper analysis of what went right or what went wrong as well as exploring the possibilities for the future campaigns. It provides insights in to how the customers perceive a brand as well as customers’ needs and aspirations. This can involve data from various sources such as the company’s website, social media pages, market surveys, customer’s purchase history, sales data, customer demographics etc. We can say that marketing analytics provides a wholesome picture of a company’s marketing efforts.
Marketing analytics offers a wide range of benefits to the organizations which is why it has become a need for all organizations to invest in data analytics tools and technology. Some of the benefits that make marketing analytics a necessity are as follows –
Marketing analytics is not restricted to web analytics or sales analytics. As a marketer, you will get a full picture of all your marketing channels through this. Although it can be useful to get a view of individual marketing channels such as social media or email marketing, but better overall strategic decisions can be taken based on the effect of all the channels put together. Marketing analytics will also let you compare the impact of different channels, like, how many leads does a blog post generate compared to an email. Similarly, of all the people who received your email how many went to the retail store to purchase the product.
Marketing analytics lets you peek into the customer’s life cycle. You can get to know how your customer first learnt about you. Where did they make their purchase? Are they repeat customers? Do they also drive more leads to you? Do they subscribe to your blog or like your Facebook page or follow you on Twitter? By taking a look at all the aspects of a customer’s actions in one place, you can draw a picture of his buying behaviour and possibly his future purchases. You can implement your learnings while making marketing and sales strategies when you know at which point your customer decides to buy the product. Marketing analytics helps to close the loop by turning leads into actual conversions.
Similarly, it also helps understand the mindset of the existing customer. It can tell about the problems that they face with your product. It can also tell if they ae satisfied and happy customers or not.
The best part about marketing analytics is its ability to clean the data into meaningful and actionable insights. In today’s scenario, an organization is overloaded with customer related, industry related and product related data from all fronts. There are multiple marketing channels driving customer acquisition, lead management, brand building, complaints etc. A marketer can easily get lost in this sea of data. Using powerful marketing analytics tools, they can find those things which will actually make a difference if worked upon. It is especially helpful when you need to convince other teams about your decision based on analysis of such data compared to convincing them on a decision taken purely on gut.
Marketing analytics can allow an organization to watch out for future trends in their industry. By looking at changing customer lifestyles and expectations, they can mold their long-term marketing strategy accordingly. It also helps them in identifying new streams of generating revenue and promoting product innovation.
Use of analytics may improve the productivity of the marketing employees. Armed with useful information they will take better business decisions. It would also be easier for a group of employees to agree on plans supported by numbers rather than based on feelings and experiences. Marketers will know the effectiveness of their marketing campaigns and if needed, improve them in time which will improve productivity.
Finally, marketing analytics helps achieve better sales revenue and improved customer satisfaction. It leads to reduction in the cost of acquiring customer as conversion rates improve. It is a sure shot way of reducing your wastage of marketing monies.
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