What Are Marketing Analytics?
Market Analytics is the management and evaluation of data to evaluate the success and value of marketing efforts. These analytics are generally collected across various sources and channels to obtain a more holistic view of Return On Investment (ROI). Analytics are then assessed to identify opportunities for improvement.
The term ROI is used a lot in marketing analytics because marketers really do see marketing initiatives as an investment, not a cost. While ROI can be assessed using marketing metrics, contrary to a common misconception, it’s important to note that marketing metrics are not synonymous with marketing analytics. Marketing metrics refers to the specific purpose-driven data, while marketing analytics refers to the assessment/evaluation of this data to see if you’re marketing efforts are helping you achieve your desired objective.
Why Are Marketing Analytics Important?
Marketing analytics are integral to the execution of marketing strategies. They are important because they:
- Identify which marketing initiatives are working and worth continuing and which need to be discontinued or tweaked
- Monitor general marketing trends and help understand them
- Identify market opportunities for new customer segments
- Forecast marketing results and subsequently other business metrics such as growth and revenues
- Inform data-driven business decision making
- Assess effectiveness and success of new products, sales messaging, and creatives
Marketing Analytics Best Practices
As you can see, marketing analytics can bring a lot of value to a business. However, this is only true if it is done properly. Here are some best practices to ensure you’re able to fully leverage the potential of marketing analytics:
- Appropriate and High-Quality Data: You need marketing data to conduct marketing analytics on it, but you also need the right kind of data. To understand what data is appropriate, you should set an objective during your initial marketing strategy planning and then only collect the data that is relevant to your strategy objectives. This helps prevent data noise and keeps your analytics focused. However, this is relevant for only very experienced marketers with very specific marketing objectives. Generally, it’s suggested to collect all structured and unstructured customer data as more data can offer a more holistic view of your marketing initiatives.
- Marketing Automation: Marketing Analytics can be very time-consuming as data can be difficult to interpret and draw insights from. For maximum efficiency, many marketers automate their most repetitive tasks so they can focus their expertise and efforts on marketing analytics. [Learning how to automate your marketing}(https://www.https://aflo.io/filtered-posts?tag=7) is critical to optimizing any marketing strategy.
- Real Time Insights: Being able to view marketing data in real time can be immensely beneficial. Conducting marketing analytics as your marketing campaign is live can enable you to tweak and optimize certain things before it’s too late, both time-wise and financially. However, it is important to not assess the performance of your campaign too soon. You need statistically significant data and most social media platforms these days have a learning phase, which can take a couple days to fully kick-in.
- Data Visualization: Marketing analytics is basically data analytics but for marketing. As with any other data analytics exercise, it is critical to appropriately visualize your data to make sense of it. This can be done using the classic pie charts, bar graphs, line graphs, indicators, pivot tables, scatter charts/maps, and many others. You should also overlay different data on the same charts or graphs to determine any correlations and patterns.
- Right Platform: While most marketing platforms offer data visualization, not all offer marketing analytics. Marketing analytics usually needs to be done by a marketer or a data expert (data scientist sounds too fancy). These days there are also a lot of machine learning and AI powered platforms that do the marketing analytics for you.
- Insights: Marketing insights are drawn during the process of marketing analytics and these insights are then used to improve marketing strategies for the future. Marketing, like entrepreneurship, is an iterative game. So insights are not always right, but at least they contribute to informed decision-making versus basesless decision-making. Marketing insights are not necessarily only draw out by marketers, someone with a fundamental understanding of data-driven insights and marketing can also draw insights.