What is Marketing Analytics?
Marketing analytics is a cost-effective way to determine how well or how poorly your marketing campaigns are working.
When used correctly, marketing analytics can inform your advertising strategies and ground your choices with objective data. You can key in on the behaviors of your target audience to understand their buying patterns.
Consumer behavior is highly important today since the digital world has changed the buying process. More dynamic than ever, big data can help break down a complex customer into understandable behaviors.
Best of all, you can quantify those behaviors to help you make smarter marketing decisions.
A marketing analytics strategy aids in growth marketing, which is the focus on both company growth and customer retention. But in order to determine whether your strategy is working, you need a way to measure its success.
This is where RCQ comes in– reach, cost, and quality.
Reach refers to how well a particular marketing effort touches your target customer. Cost is the price per reach. Or, in other words, the cost of targetting and converting a customer.
Quality means the quality of engagement. For instance, your company may rank a sale as higher quality engagement than a share and a share as higher quality engagement than a comment or like.
Marketing analytics have nearly endless functions with all the new technology coming out these days. The industry is projected to reach $4.4 billion globally by 2023 for this very reason.
But with so many analytics tools on the market, it can be difficult to decide which functions are vital to your business. Segmentation, funneling, and integration of channels are three functions any marketing analytics strategy should include.
Segmentation is the ability to break down an audience into its component parts. While you have a broader target audience, there will be smaller groups contained within that audience.
Segmentation allows you to focus in on individual buyer behavior you might not see from the bigger picture.
Marketing funnels have been around forever but their role in marketing is changing. Instead of using funnels primarily to generate brand awareness, funnels should be used to target different forms of traffic depending on the consumer’s place in the buying stage.
Funnel customers from cold to warm to hot traffic using different analytics-informed strategies for each group.
Integration is the ability to use multiple channels to target customers. These channels might include:
Social media feeds
But it’s also important to be able to break down each channel by individual analytics. That way, you can more easily assign credit for conversions and analyze each channel’s performance.
Why You Need Marketing Analytics Strategies
So you know what marketing analytics are. But you may be wondering why you should care. What can analytics do for your business that innovation and creativity aren’t already doing?
Marketing analytics are data-based, which means using them will help your company make decisions backed by reason. And why do you want to make reason-backed judgments?
Because marketers who have an analytics-informed strategy are primed to increase growth, maintain retention, and improve MROI.
How to Use Analytical Metrics for Growth
Using metrics for growth hinges on your ability to implement them successfully.
You can use data to understand buyer behavior instead of just conversion rates. You can visualize places where you’re losing customers and re-focus on helping buyers in every stage of the purchasing cycle.
You can identify new submarkets to expand into. And you can use analytics to track website visitors, conversion funnels, and even automated emails.
But if you don’t utilize all this data to inform your actions then you won’t see growth.
So how do you transform metrics into growth strategy? Here is our 5 step guide to utilizing marketing analytics in your business.