Marketing analytics is the study of data garnered through marketing campaigns in order to discern patterns between such things as how a campaign contributed to conversions, consumer behavior, regional preferences, creative preferences and much more. The goal of marketing analytics as a practice is to use these patterns and findings to optimize future campaigns based on what was successful.
Marketing analytics benefits both marketers and consumers. This analysis allows marketers to achieve higher ROI on marketing investments by understanding what is successful in driving either conversions, brand awareness, or both. Analytics also ensures that consumers see a greater number of targeted, personalized ads that speak to their specific needs and interests, rather than mass communications that tend to annoy.
The Importance of Marketing Analytics
In the modern marketing landscape, accurate analytics is more important than ever. Consumers have become highly selective in choosing the branded media they engage with and the media they ignore. If brands want to catch the ideal buyer’s attention, they must rely on analytics to create targeted personal ads based on individual interests, rather than broader demographic associations. This will allow marketing teams to serve the right ad, at the right time, on the right channel to move consumers down the sales funnel.
How Organizations Use Marketing Analytics
Marketing analytics data can help your business make decisions on matters including product updates, branding and more. It’s important to take data from multiple sources (online and offline) to prevent a fragmented view. Using this data, your team can gain insights into the following:
Product intelligence involves taking a deep dive into the brand’s products as well as how those products stack up within the market. Typically done by speaking to consumers, polling target audiences or engaging them with surveys, organizations can better understand the differentiators and competitive advantages of their products. From there, teams can better align products to the unique consumer interests and problems that help drive conversions.
Customer Trends and Preferences
Analytics can tell a lot about your consumers. What messaging / creative resonates with them? Which products are they buying and which have they researched in the past? Which ads are leading to conversions and which are ignored?
Product Development Trends
Analytics can also offer insight into the types of product features consumers want. Marketing teams can pass this information on to product development for future iterations.
Analytics also helps uncover areas of the buyer’s journey that could be simplified or improved. Where are your clients struggling? Are there ways you can simplify your product or make the check-out process easier?
Messaging and Media
Data analysis can determine where marketers choose to display messages for particular consumers. This has become especially important because of the sheer number of channels. In addition to traditional marketing channels such as print, television and broadcast, marketers must also know which digital channels and social media networks consumers prefer. Analytics answers these key questions: What media should you be buying? Which are driving the most sales? What message is resonating with your audience?
How does your marketing efforts compare with your competition? How can you close that gap if there is one? Are there opportunities your competitors are capitalizing on that you may have missed?
Predict Future Results
If you have a thorough understanding of why a campaign worked, you’ll be able to apply that knowledge to future campaigns for increased ROI.