In the age of data analytics, business enterprises are arriving at important decisions based on the insights gathered from web-based analytics and social media channels. The question is whether this is enough? With the increasing number of marketing channels, marketeers must consider the growing availability of marketing data from multiple channels instead of focusing on any single channel. This is where marketing analytics plays a role.
What is Marketing Analytics?
In simple terms, marketing analytics is a branch of data analytics used to measure the performance of marketing initiatives for any business enterprise. It can be used to provide answers to marketing-related questions such as:
- How well are my marketing initiatives performing today? Will it be effective in the long run?
- Which marketing channels are giving the best returns today? And which channels should I invest more time and money?
- How are my marketing efforts faring as compared to my competitors? Which marketing channels are they investing in?
In addition to online metrics, marketing analytics looks at other indicators including offline metrics and marketing tools to present a more inclusive picture of business marketing. To determine the overall effectiveness of marketing, marketing analytics evaluates other business-related factors such as Return on Investment (ROI) and business growth to provide a more accurate measure.
Why is Marketing Analytics so important?
So why is marketing analytics so important and why should it be an integral part of data analytics for business corporations?
- Provide data-based decision making in marketing: As part of any marketing team, you want your higher management to recognize the overall value of your marketing proposals and initiatives and make proper decisions that can boost your marketing efforts. The best way is to provide data-driven evidence supporting your marketing ideas and proposals. Marketing analytics is the best way of providing this data.
- Improve the impact of your marketing campaigns: Marketing analytics enables businesses to monitor the effectiveness of their marketing campaigns and compare the results across marketing channels. According to McKinsey & Company, an integrated approach towards analytics can reduce 15-20% of the marketing budget that can improve your bottom-line growth. Advertisers can use marketing analytics data to derive more monetary value and ROI from their ad spend.
Marketing analytics does not simply look at any particular marketing campaign or initiative but derives deeper insights from multiple campaigns over a longer time period and across multiple channels.
How to best implement Marketing Analytics?
Now that we know about the value of marketing analytics, let’s delve into how to implement it for business gains:
- Use high-quality data: Success in marketing analytics depends on the quality of your data, which should be retrieved from multiple sources instead of a single source. Along with that, you must build efficient models for marketing based on all types of past and present data.
- Use meaningful KPIs in your analytics: Data analytics fails when businesses try to include as many metrics and KPIs in their analytics tools. Define your marketing goals and include only those KPIs that can produce results that matter to your business. For efficiency, it is better to start with minimum number of KPIs and then grow (in number) according to your business demands.
- Acts on the insights: Marketing analytics can be effectively used to improve your marketing strategy, but its success depends on how you act upon the derived insights. For example, by converting sales leads generated by marketing campaigns, you can determine which of your marketing initiatives are contributing most to your sales conversion. Based on data insights from marketing analytics, businesses can implement other action plans including supply and demand planning, marketing channel improvements, marketing strategies, and optimizing product pricing.
As a data analytics company, Countants has been successful in empowering its customers with valuable insights from the large volume of business data. With the latest and innovative technology solutions, Countants have brought the practical benefits of data analytics and business intelligence to enable clients in their decision making and in staying ahead of their competition.
If you want to explore the potential of marketing analytics in your business, it’s time to call and partner with us as a technology partner.