Analytics is one of the biggest buzzwords today. It is something that every leader, manager or entrepreneur should know. Analytics is a multi-dimensional field that uses statistics, machine-learning, mathematics and predictive modeling to find meaningful patterns and knowledge in recorded data.
With the help of digital marketing analytics, one can measure, manage and analyze marketing performance to optimize return on investment (ROI) and maximize its effectiveness. Apart from sales and lead generation applications, marketing analytics helps to gather insights into customer preferences and trends.
The modern customers like more responsive and personalized service through their preferred channels. Traditional online marketing does not appeal to an audience any more and it’s hard to convert audience into leads by using old methods of marketing.
Here are the concrete ways in which marketing analytics and data can give you a better understanding of your customer and be beneficial for your company:
- Specific data related to customer preferences: Marketing Analytics can provide you data such as how did one arrive at your web page, which online mediums did one use to reach the web page, whether they kept themselves well informed about your company online or not etc. Marketing analytics would help you gather such information.
It’ll also help you understand the trends, which marketing activities are valuable at different stages in the sales and marketing cycle.
For example, many customers’ last point of conversion was at the time of any marketing deal(s) or discount(s) offered by the company. This data would help you to implement a better and effective lead management process and also help you to identify which marketing channels are most effective to generate leads.
- Predictions: There are mainly three types of marketing analytics processes, i.e. descriptive, predictive and prescriptive. They help in knowing what had happened in the past such as investment in marketing, number of people who entered the sales funnel etc. On the basis of this data you can predict what can happen such as forecast the number of leads in funnel that will convert to customers. And then you can suggest plans such as reallocation of marketing spend, marketing mix optimization and optimization of social media scheduling by which you and your team can do to get results.
- Closed-loop Data: This is one of the most killer benefits of Marketing Analytics. One can generate data such as which channel is generating leads and business and making money for the company. But for that one has to depend on the customer relationship management (CRM) software to generate this data.
Despite of having such advantages, a majority of companies fail to ever realize the abilities of marketing analytics. Here are a few ways in which a company can fail to use marketing analytics efficiently and how you can improve on that:
- Arrange it and forget it: Sometimes you hear about this new analytics tool and you get it, arrange it and start working on it. But at times you forget to keep a check on it or on the updates from it’s process. This is harmful for the analytics process. To get it right, you need to be testing both new channels and new tools to track their success – then set aside time to dive into the data. To have successful marketing analytics one has to be proactive and constantly pushing the limits on the process behind your decisions.
- Thinking that it’s a top management’s job: It’s a very big misconception that marketing analytics is the top management’s job. It is every marketer’s job to keep constant observation on the process and look for the results. It should be an important part of your job responsibilities. Leaving it completely on the top management would keep you disconnected with the roadmap. It should be a joint effort.
- Team Involvement: One big mistake the marketers do is that they fail to involve their team members in the discussion about marketing analytics, the processes that they have been doing and the updates on them. Rather than telling them to do a particular analytical process, one should try to have a good discussion about the process, the required outcomes and the ways of doing so. By involving them, you are motivating them to look forward to success.
Thus, you should understand the importance of such analytical data, which is taking over the whole world and make efforts to generate data that will help you take better decisions for your business.
As analytics is a very intense topic, I would like to know what are your understandings on the topic?
I would like to know if you have any process or strategy that you have followed that is quite different from the ones mentioned above.
It’d be great to hear any input from you! I’m excited to chat more about the benefits above-or anything else!-here in the comments.