Marketing analytics refers to the process of measuring, managing and analyzing marketing performance with the sole aim of maximizing effectiveness and optimizing returns on investment. Suppose you are involved in a pressure washing business and you want to know where your market is centrally based, you can apply marketing analytics to find answers to your questions. Marketing analytics employs the use of important business metrics such as marketing attribution, ROI and overall marketing effectiveness in telling how marketing efforts are performing.
Why Marketing Analytics
Over the years, businesses have realized expansion into new marketing categories, with new technologies adopted. Due to different segmentations, marketers make decisions based on data they get from individual channels, such as website metrics, social media, among others. This means many might fail to take into account the entire marketing aspect. Web analytics data is not enough, same to using social media alone. With marketing analytics, you consider all aspects of marketing, across different channels and use data you get to make final decisions.
Typical Applications of Marketing Analytics
Measuring performance of marketing campaigns
The most simplest form of marketing analytics deals with providing marketers with tools that can be used to understand what business impact their marketing efforts has on overall business performance. This task can range from providing insights on metrics such as ROI, click-through rate among others.
We make use of marketing analytics to find opportunities in marketing performance. With marketing performance analytics, marketers are able to know how a certain campaign performs by digging on various aspects of data to uncover new patterns and any other potential customers. Some campaigns work better on some platforms such as mobile, and marketing analytics aims at extracting these vital elements of data to help in making better decisions.
Understanding your Customers
With marketing analytics, marketers are able to dive deep into customer demographics and behavioral patterns to understand which ones are more likely to be successful. Marketers can thus use this information in selecting their target market, with statistical modeling and data mining, marketing analysts can have a very rich understanding of where their customers are found and what they want. With analytics, marketers also have a better understanding of competition. This means analysts are able to understand competition better and adjust their strategy effectively.
Marketing analytics is very important in providing insights that allow the entire marketing team to work in an efficient manner and gain a bigger impact on the performance of a business.