Have you ever made a decision based on your intuition? Made a choice simply because you had a feeling that you should? Many of us make these gut decisions on a regular basis, and while it usually works great for small, everyday decisions, most of us know that it’s not always 100% reliable.
This is especially true when it comes to making decisions for your business, especially big ones that are going to directly affect business success in the future. Marketing analytics is essential to back up your gut feeling and intuition with cold, hard data to make sure that you are making the right decision for your company based on the facts.
Marketing analytics involves measuring and analyzing your company’s marketing performance, in order to boost ROI and maximize efficiency. It provides you with an objective way to view your marketing efforts and make sure that your marketing budget is being put to the best use. Marketing analytics applies to all aspects of your business, from SEO rankings to email marketing metrics.
Why Do Businesses Need Marketing Analytics?
In the past, marketing was pretty much a shot in the dark. You could never be sure where any given lead came from, and you had to guess about the best strategies and tactics to use in order to bring the most customers in. Many companies asked new customers to tell them how they’d heard about the brand in order to get a better idea of which advertisements were the best investments, but if a customer didn’t tell you whether it was the ad on the side of a bus or a radio ad that had sparked their interest, you would likely never find out.
Today, all of that has changed. Digital marketing is the norm, and for most companies, the internet is where they reach the majority of customers, with the web being the go-to source for most people looking for information or new products and services to buy. Marketing analytics provides you with the tools that you need to gather the information that you need to find highly relevant leads and build a solid foundation for business success.
Don’t forget that if you’re not taking advantage of marketing analytics now, you can bet that your competitors will be. Competitors that are using their own information to learn more about their audience and grow their business, chances are, they are learning from your data and information too.
What Can Marketing Analytics Be Used For?
In short, marketing analytics can be used for everything and anything that you want and know how to measure; the possibilities are infinite. Marketing analytics can be utilized for everything, from the simplest of metrics regarding visitors to your website to a massive dataset that you can build an entire marketing campaign around, for example.
Analyzing your website traffic metrics means tracking and measuring factors such as:
- New users
- Traffic sources
- Average time spent on page
- Areas of page attracting the most attention
- When visitors leave the page
Analyzing these metrics will give you a better understanding of your website’s performance, allowing you to adjust web design, website content, and other strategies accordingly.
You can also go more in-depth, using deep analytics tools in order to help businesses determine which search terms are being used the most in relation to them and their services. When it comes to inbound sales, marketing analytics is particularly useful as it allows you to utilize data in order to determine who to reach out to and how to do it in order to get the best results.
Paid advertising is another strategy where marketing analytics also comes in handy. It allows you to get a clearer picture of what your prospects look like online, where they are and what they are looking for. Using marketing analytics tools provides you with a huge wealth of behavioral information, that you can use to target your audience at a highly sophisticated level and make better decisions regarding which demographics to target.
What are the Benefits of Marketing Analytics?
Using marketing analytics has a variety of benefits for any business, including the following:
1. Learn What Happened:
Marketing analytics can provide you with a lot of insight into what’s happened in the past, and why. This is absolutely essential to marketing teams, who can gather information and analyze it in order to figure out what’s worked well in the past in order to do it again, along with figuring out what went wrong and what should be avoided in the future.
Marketing analytics uses descriptive analysis, along with the use of marketing automation platforms and customer relationship management software, to create a clear picture of what’s happened in the past and why. For example, marketing analytics can be used to ask more about why a specific metric has performed in a certain way or the factors that impacted the sales numbers of a specific product or service.
2. Figure Out What’s Happening Now:
Along with making more sense of what’s happened in your business in the past, marketing analytics can also be used to help you understand what is currently happening in terms of your marketing efforts. Click here to learn more about the importance of analytics in marketing and how it can help you make better campaign decisions on the fly. This is especially useful if you need to quickly make changes or pivot in order to make improvements or avoid mistakes in a campaign. You can use dashboards to:
- Display current engagement
- Measure traffic spikes
- Determine email engagement levels
- Get real-time information on the status of new leads
3. Make Predictions for the Future:
Some experts would argue that the most important aspect of marketing analytics is predictive analysis. Predictive modeling allows you to understand and anticipate customer behavior to get a clearer idea of what is likely to happen in the future. These include:
- Regression analysis
- Collaborative filtering
- Propensity models
For example, you can utilize web analytics tracking tools that incorporate probabilities to make accurate predictions regarding when a person might leave a web page, and when. Marketers can then take this information and put it to use to execute specific, relevant marketing tactics at these moments in order to improve the chance of retaining leads and customers.
In addition, you can also use marketing analytics to assess lead management processes in order to prioritize leads based on similarities to customers who have converted in the past or are highly likely to buy. In the future, the goal of marketing analytics is likely to shift from a rear-view strategy to one with a much higher predictive focus on the future.
4. Optimize Efforts:
Combining your marketing analytics with your market research goals and objectives often brings about the greatest impact. This involves translating your findings with marketing analytics, to market research objectives that can help you determine the best customers to target. Forgetting to gather real customer feedback is a common mistake made by marketers when conducting marketing analysis, but this is an important strategy for bridging the gap between the insights provided by marketing analytics, marketing strategy, and activation.
It’s important for brands to use marketing research as a tool to push marketing analytics from simply learning about sales metrics and lead generation and use it in order to get a better understanding of customers in relation to their marketing opportunities. This will help you gather important insights that can provide you with important information on your customers, including:
- The products and services they are interested in the most
- The kind of content that they prefer to see from your brand
- How long it typically takes them to convert
- How much they are willing to spend
- Which marketing and advertising strategies get the best results
How to Implement Marketing Analytics:
There are several ways that you can begin to implement marketing analytics in your business and start seeing better results almost instantaneously. One of the easiest methods of doing this is to use a free tool such as Google Analytics for your website, allowing you to track the number of visitors that you get, figure out which keywords and search terms are being used in relation to your business, and discover where your website traffic is coming from. Google Analytics is a popular starting point since it is free and easy to use, but there are several other tools that you can use, including:
- KISSMetrics: Gather in-depth information about your audience and how they are interacting with your marketing campaigns
- CrazyEgg: Use a series of maps to gather more important about your website and how visitors are affected by it, including heatmaps to show you where visitors are spending the most time on your site, allowing you to update the content and design accordingly
- Clicky Analytics: Get real-time reports on your website performance
When it comes to success in marketing, analytics are absolutely essential for understanding your audience and putting together effective and relevant campaigns.