Marketing today is driven by data and analytics. Without an understanding and measurement of relevant KPIs (key performance indicators), businesses cannot determine if marketing investments are yielding a return on investment (ROI). Analyzing past performance is crucial to determining how to improve future performance, and that is where marketing analytics comes in.
Machine learning, predictive modeling, and statistics are used in analytics to gain insights and answer questions. Analytics is used in almost everything these days. From predicting the weather and determining baseball batting averages, to calculating life insurance quotes. When it comes to online marketing, analytics plays a crucial role in understanding and anticipating customer behavior, and enhancing user experience (UX) to increase sales.
Data has become more accessible than ever before. Smartphones enable you to access information regarding your sleep patterns, exercise habits, and medical records. To keep track of your customers’ preferences, you can use text files called cookies, and other similar tools. This will not only allow you to understand your target audience but will also help you stay ahead of your competition.
Almost anything can be learned about your customers via marketing analytics, from what types of products they purchase to what age groups frequently visit your website. This data can be broken down into individual information. What matters most is what you do with the data, not the data itself. It is the aggregation and interpretation of data that provides the power, which is what marketing analytics is all about.
All businesses, be it a brick-and-mortar grocery store in your neighborhood or a large corporation like HughesNet Internet, can benefit substantially from marketing analytics.
In this article, we will describe what marketing analytics is, types of marketing data, alongside its benefits, and usage. So, without further ado, let us dive right into it!
What is Marketing Analytics?
In the age of ever-evolving technology, CMOs are increasingly focused on how their marketing initiatives are influencing growth. So much so, that a report stated that expenditures in the area would increase by 150% over the next three years. It can be challenging for marketing teams to establish their credibility, but adopting analytical strategies can allow them to demonstrate the impact of their marketing efforts.
An analytical marketing approach involves collecting and analyzing metrics to evaluate marketing initiatives, such as blog posts, calls-to-action (CTAs), channel performance, and determining which areas need improvements. With the use of business performance metrics, diagnostics, and leading indicators, marketers can address the issues stakeholders value most.
The data obtained from marketing analytics can help drive growth for any company, regardless of its size. The majority of large companies may not understand the benefit of metrics. Whereas, marketers of small and midsize companies (SMBs) may feel that metrics are ineffective for their companies given their goals and objectives are relatively smaller as compared to larger companies. However, both perspectives are inaccurate. When marketing analytics is leveraged correctly and carefully, they provide businesses of any size with growth opportunities.
If marketing analytics and metrics are set up properly, it is easier for companies to understand how marketing works, identify which campaigns are effective, and track progress. Furthermore, it provides insight into each program’s ROI and offers future predictions. The majority of B2B marketers are measuring the results of their marketing programs. Therefore, marketing analytics is gaining traction among businesses, even though they were initially wary.
The Importance of Marketing Analytics
With today’s marketing landscape, analytics is becoming increasingly vital. Consumers are becoming more selective in their consumption of brand-specific content and ignoring irrelevant content. For brands to appeal to ideal buyers, analytics must be used to produce personalized ads tailored to individual interests versus a broader demographic. This way, marketers can then serve the right content, on the right channel, at the right time, to the right audience.
Types of Marketing Data
For the data to be usable for gaining customer insights, driving strategic decisions, and tracking progress toward goals, it must first be gathered, organized, and analyzed. Customer data can be divided into three types: first-party, second-party, and third-party.
The information collected by your organization directly from your customers is called first-party data. This type of data is most useful because it provides you with insight into your audience’s behavior, thoughts, and feelings.
Second-party data refers to information provided by another organization about the company’s customers. This may prove beneficial if your target audiences are similar in terms of demographics, if your companies have a joint promotion running, or if you are collaborating.
The term third-party data refers to the information collected, rented, or sold by groups or companies that are not affiliated with your company or users. Even though third-party data is abundant and provides information about similar users, it is not the most reliable resource since it is not provided by your customers or trusted second party.
Data Collection Methods
Even though second and third party data are useful, first-party data is more accurate and credible since it is collected directly from the customers and reflects their beliefs, behaviors, and feelings. You can collect first-party data in a number of ways, including:
A simple way to learn about your customers is to survey them. Inquire what they think of your product, why they bought it, how it could be improved, and whether they would recommend it to others. You can conduct surveys in a variety of ways, ranging from comprehensive interviews to popups that ask users to rate their experience.
Interaction with Organic Content
The impact of organic content, including blog posts, emails, downloadable offers, social media posts, videos, and podcasts, can be monitored and analyzed. This will enable you to determine a user’s buying motivation, how far down the marketing funnel they are, and the type of content they prefer to consume.
The A/B test allows you to investigate one hypothesis by comparing the interaction of users on a revamped version of your website against one that has not been altered. Consider, for example, the hypothesis that if your site had blue buttons instead of red, you would be more likely to get users to click them. You might run an A/B test in which you show half of your users red buttons and half blue ones. You could determine if your hypothesis was correct by collecting data from interactions between the two groups. In addition to gathering behavioral data, A/B tests are an excellent way of testing ideas.
Interaction with Paid Ads
A paid digital ad you have run can also be monitored and tracked, regardless of whether it is displayed on another website or at the top of search results. You need this information to know how your customers find you and where they are in the funnel when they see your ads.
The Use of Marketing Analytics by Organizations
Your business can use marketing analytics to make informed decisions about matters such as product updates and branding. Multiple sources of data (online and offline) must be used to avoid fragmentation. The data can help your team determine:
Customer Preferences and Trends
Analytical data can provide a lot of insight into your customers. In what ways do they respond to your message? When do they most often buy certain types of products? Does one type of advertising work better than another?
Product intelligence entails getting to know exactly what a brand is offering, and how that brand compares to its competitors. Surveys, consumer conversations, and polls are examples of how businesses can determine what makes their products unique. In this way, products can be tailored to the interests and problems of consumers to increase conversion rates.
Analyzing data can also reveal what kinds of features consumers wish were included in a product. To make the product better, marketing teams can provide this information to product developers.
Analytics can also be used to identify elements of the customer journey, which can be streamlined or enhanced. Which areas of the customer journey do your clients struggle with? Would it be possible to streamline the checkout process?
Media and Messaging
The location of advertisements for particular consumers can be determined by data analysis. With so many channels available, we must pay closer attention to this. Along with traditional channels like newspapers, television, and radio, it is also critical for marketers to understand how consumers use social media and digital channels. Analytical data provides answers to these three questions: How should you spend your media budget? Which channels drive sales? What is your audience responding to?
In what ways do you differ from your competitors in terms of marketing? If there is a gap, how can you close it? Is there anything you are missing that your competitors are taking advantage of?
Predict Future Outcomes
When you understand why a campaign was successful, you can use that information to improve future campaigns. This will help you optimize your marketing efforts and lead your business on a path to success.
Getting Started with Marketing Analytics
For a more effective analytics program, take the following steps at the beginning:
Identify the Metrics You Want To Measure
Marketing campaigns can be measured in a number of ways: brand recognition, conversion rates, and leads captured, to name a few. Consider the issue you are attempting to address or the insight you are trying to obtain before you begin analyzing the data.
Create a Benchmark
What is the difference between a successful campaign and an unsuccessful one? Data and metrics collected will vary depending on this. For instance, if the objective was brand recognition – an increase in brand loyalty might serve as the success benchmark, as opposed to clicks and impressions.
Evaluate Your Current Capabilities
Where is your company now? Do you have any weaknesses? If you are analyzing offline campaign results or looking for the media that converts the most efficiently, being aware of where you are lacking can help you greatly improve your campaign.
Implement Marketing Analytics Tools
Increasing consumer selection and larger datasets will increase the need for marketing analytics tools. The following are some platform options to consider:
- Google Analytics
- Sprout Social
Aside from tracking data and compiling it, these platforms can perform analytics and extract key insights. Alternatively, you can import data into spreadsheet programs such as Microsoft Excel, visually represent it with charts and graphs, and conduct regression analysis.
In case you are using any online tools, make sure you have a reliable internet connection in place. You can call HughesNet customer service and subscribe to one of their internet plans, keeping in mind your internet needs.
As a marketer, you will always find the concept of analytics invaluable when it comes to measuring the success of campaigns and obtaining reports regarding their performance. Essentially, these reports aid in the representation of the data in an understandable manner.
Analyzing the information will help formulate strategies that ensure the highest possible returns with the least amount of effort. Doesn’t every marketer want a strategy or system that will enable them to be as efficient as possible and achieve the results they want?
Using marketing analytics, companies can gain a 360-degree perspective of their business operations, allowing them to make informed decisions. The purpose of it is to prioritize and optimize resources and time to increase the efficiency of an organization.
To successfully conduct market analysis, your business needs to have the right tools and resources. This will include an expert in marketing analytics and an online marketing analytics tool like Google Analytics. You would also need an internet connection like HughesNet Gen 5 to run these tools and an eager marketing team that is ready to track and compile the data that will help your business grow.
By using data at your disposal, you will be able to make informed strategic decisions about your marketing efforts, which will give you the confidence to perform various marketing activities. This will help you accomplish your goals and assist you in your future endeavors.