What is marketing analytics?
Marketing analytics is the process of collecting, analysing, modelling, and visualising market data. This data helps marketing teams understand potential customers’ behaviour across channels and optimise the campaigns accordingly. By using marketing analytics effectively, businesses can maximise their return on investment.
Businesses and customers benefit alike from marketing analytics. The customers see only targeted and personalised ads that are relevant rather than annoying and irrelevant mass communication.
How do businesses use marketing analytics?
Marketing analytics helps businesses make decisions on ad spend, product updates, branding, and everything in between. Businesses collect data online and offline to gain insights into the following –
- Product intelligence – Dive deep into your products and services and analyse how they are stacking up against the market. Typical methods to do this are by speaking to customers and online polls and surveys.
- Trends and preferences – Study customer preferences to know the style of messaging that resonates with them. Know which products they have researched for or bought in the past and the ads they responded to or ignored.
- Product development trends – Pass on the marketing data to the product development teams, who can use it for the development of new products and the improvement of existing ones.
- Customer support – Know where your buyers are struggling and simplify and improve their journey. For example, can you make the product selection and check-out process simpler?
- Media and messaging – Marketers can display the right message for the right customer at the right place. Given the large number of channels, the right media and messaging are important.
- Competitors – Understand how your marketing effort and investment are faring against that of the competition. Identify the gaps you can close and the opportunities your competitors are capitalising on.
- Future results – Learn from successful campaigns and know what exactly worked. Reuse this information for future campaigns.
Steps to implement marketing analytics in your business
Businesses looking to enhance their BPM analytics capabilities should follow these four steps:
Step 1 – Know the parameters you want to measure The parameters are business specific, and what is important for someone else may not be for you. Some of the common ones are conversion rates, brand recognition, and captured leads. To understand the parameters applicable to your business, you need to know the problem you want to solve.
Step 2 – Establish a benchmark for successful campaigns This explains the data and metrics that define a successful campaign. For example, an increase in repeat enquiries could demonstrate brand loyalty.
Step 3 – Leverage your current capabilities What does your company do well? Is it collecting offline campaign results or creating media most likely to convert? You must leverage those skills internally.
Step 4 – Partner with marketing analytics experts Marketing analytics is a strategic program that requires deep domain expertise, current tools and software, model development, support, and maintenance, to name a few. This is where partnering with a reputed marketing analytics agency will help your business.