Marketing analytics - Importance, Uses, and Challenges
Living in a world where data is easily accessible, putting efforts into marketing without data is more like driving with closed eyes. Therefore, implementing marketing analytics plays an inevitable role for any business. However, it's not only about accessing data insights for improvement in marketing, but it's about utilizing this beauty. Excited to know all that's involved? Let's get started!
- What is marketing analytics?
- What makes Marketing Analytics important?
- Use of marketing analytics data by businesses
- Marketing Analytics - The challenges
What is marketing analytics?
These days, marketers have access to almost every inch of data derived from a marketing campaign. A mere thanks to the innovating tech industry! Marketing analytics is simply the study of data derived out of marketing campaigns. There are many factors that one can have an understanding of while analyzing these insights. Be it the campaign's performance in terms of conversions, consumer behavior towards the campaign, regional or creative preferences, and so on. The study helps to get a clear picture of how effective was the performance of any campaigns launched and to improvise the derived stats to optimize future campaigns.
Well, what's more, interesting is that marketing analytics puts both marketers and consumers in a gainful position simultaneously. How? With this data, the marketers get the chance to increase the ROI without improvements in their marketing campaigns as they already know what's working in their favor, like conversions or brand awareness, or maybe both. But, on the other hand, consumers get to receive targeted & personalized content that certainly matches their interests and requirements, rather than ads that tend to irritate them.
Now, there are various ways to analyze and study marketing data analytics for the concerned KPIs. However, the methods vary for every individual campaign objective. For example, the analytical process of a brand awareness campaign will have no similarity to that of analyzing a conversion campaign. Mentioned below are some of the common methods for such analytics.
What makes Marketing Analytics important?
In this data-driven market, analytics is way more than what we call crucial. When it comes to understanding the fruitfulness of your campaigns or the customer journey, marketing analytics can be referred to as the knight in shining armor. Insights allow you to analyze what's working and what's not with your ads campaign, thus, opening doors for improvement with the future ones. Let's look at what marketing analytics have in store for you and the benefits one gets!
Gives your claims a dimension
In the marketing world, numbers speak louder than just words! When you speak to someone involving numbers as support, it sounds convincing and compelling. Let's understand this with an example. Suppose you are employed as a digital marketer. You could say to your seniors that video marketing should be implemented more than Google ads for future ad campaigns or tell them that 68% of marketers say video has a better return on investment than Google Ads. There's a high probability that the second option will pave your way for approval. Therefore, it can be said that people tend to pay more attention or approve of your claims when adding relevant numbers.
Talking about marketing analytics gives you a clear picture of the data ad campaigns, such as your ROI before and after an ad campaign. Without such data, you can only think about the outcomes in general terms. For example, you won't be clear which of your marketing campaigns generate value and which ones don't. When you have the data ready, you can't just showcase the ifs and buts, but also why. With this data-driven answer, you can persuade people to make changes.
Turn insights into information
Nowadays, major businesses have one thing in common - accessibility to customer data & web analytics tools. However, how an organization makes proper use of such data makes the difference. Unfortunately, the sad part is that most of such data are left in disuse. As per the Harvard Business Review, most useful data spend their time sitting on the server.
To give life to data and extract proper information from the same, you need to perform data analytics. Let's say, for example, you started with a YouTube ad campaign, and your monthly revenue is $5000. After running the campaign, you find that your revenues have reached somewhere around $8000. Now, the question is, should you be running the same ad again? The answer depends. Was it the product that got popular without any specific reason? Was there a hike throughout a similar industry? Were there any other ad campaigns you were running? What's the count of customers you received from the YouTube ad campaign? It's the data that will give clear answers to all these questions. Therefore, with such giveaways from data analytics, it's become easy to make future decisions and increases your chances to gain rewardable returns.
Let's compare across various ad sets
When you make a comparison, it's obvious that the outcome will showcase the dos and don'ts related to your ad campaigns. With analytics, you can delve into the insights and derive a clear picture of what's working in your favor. For example -
- The difference between the ROI from a Facebook ad campaign and PPC ads.
- Any difference in the revenue generated from specific demographics.
- Platforms that give you the most engagement and so on.
Always remember, your customer groups, ad campaigns, and content initiatives are all interconnected. Now, when you decipher this phenomenon with analytics, the game is surely going to change for you.
Use of marketing analytics data by businesses
There are certain crucial decisions for any organization, such as product modification, branding, and more. Now, with data derived from marketing analytics, there are insights to which you get access. Mentioned below are the following -
Preferences of customers and what's trending
When it's about knowing your customers, analytics gets you covered in various aspects. For example, are they loving your creativity or messaging? If so, which ones do they find interesting? Which products allure them? Which product do they research? Which of your ad campaigns is giving you conversions? Answering all of these is what marketing analytics does for you.
This process is about understanding your brand and how your products stand in the market. Generally, businesses speak to their consumers about it, run a poll among their target audiences, or carry out a survey. In this way, they derive the data and analyze the differences and advantages against competitors. Also, with such reports handy, it's easy to modify, improve and make the products align to what the customer wants. As a result, the chances of getting higher conversions become elevated.
Improving the buyer's journey
Organizations take advantage of marketing analytics to unify and redevelop their customer support channels. Analytics helps understand the struggles of consumers, and resolving the same improves the buyer's journey. For example, customers may be struggling with their experience on the website on a certain page? Or maybe there's a scope of improvement at the cart section to ease the buyer's check-out process.
Choosing the media
Marketing analytics is a great medium for organizations to get to the decision of choosing the media. Not all social media platforms are meant for all businesses, right? Well, analytics clearly states which digital channel or social media networks your consumers prefer. Besides, it also helps to learn which of your messages resonates with your target audience.
Marketing Analytics - The challenges
Undoubtedly, it can be said that marketing analytics plays a robust role in the success of any campaign. However, there are certain challenges like unattainable quantities of data for marketers. To perform a proper analysis, it's important to have a program to organize the data easily and act accordingly. Mentioned below are some of the biggest problems when it comes to data analysis these days.
This digital age gifted marketers with big data! This helps to record every aspect like consumer click, views, and impressions. However, the quantity of data becomes huge, thus making it difficult to structure and organize the same for insights and future optimization. This leaves marketers spending a lot of time online to organize the data for evaluation.
It's not just the quantity, but there also lies a difficulty with the quality of data. As per the report of Forrester, 21% of respondents' media budgets turned out to be of no benefit due to the poor quality data. Therefore, organizations need a program for analysis and management of data quality so that it enables them to learn and utilize accurate information to make vital decisions.
Deficiency of Data Scientists
Even if your company manages to access the right data, the deficiency of data scientists may come up as a barrier. When choosing a career, most people drop their plan of becoming a data scientist for multiple reasons. Higher course fees, lack of good institutes are the most common among them. A recent report from CMO says that only 1.9 percent of the organizations have the right workforce to leverage marketing analytics to the fullest.
Marketers collect data from various sources, which makes finding a way to strategize them crucial to help you make the comparison process easy. When comparing online and offline engagements, the search, and analysis of the right data may look like a never-ending and daunting task. Be it a report of the week or month; various attribution models usually measure engagements. This is where the amplitude of unified marketing and marketing analytics comes into play. They introduce true value by organizing data from scattered sources.
Hence, from the given information, it's understandable that to manage smooth sales operations and boost your business' revenue, it's more than vital to put in adequate effort in identifying and utilizing the right data. Leverage the power of marketing analytics to the fullest. Apart from hiring an adept workforce, you can also use the free and paid marketing analytics tool to make your job even more convenient. Let the power of data speak, and let success kiss your feet!
About the author
Dennis Hoinkis has been working as a web developer and in online marketing since 1998. After building up a marketing agency and the exit in 2013, he consulted international groups as a freelance consultant. Since 2020, he and his team now offer staffing services in this field.
Dennis Hoinkis CEO, FSOM Group Corp.