Marketing Analytics- Definitions, Benefits, & More
What are Marketing Analytics?
Marketing analytics is defined as the technologies and processes that allow marketers to evaluate the success of their marketing initiatives. Marketing analytics measure real-time marketing performance and uses data to optimize long-term activities.
Unfortunately, the statistics surrounding marketing analytics are unideal. Studies show that 82% of marketing professionals report that executive management expects every marketing campaign measured. However, less than 33% of marketing team members can effectively evaluate the return on investment of every channel.
Web analytics is the most prominent of the marketing campaign analytics tools according to studies. Shockingly, studies show that a mere 48% of marketing team professionals utilize web analytics. Some marketing teams depend on web analytics tools like Google Analytics to help understand their marketing performance and effectiveness. Everyone wants high-impact marketing but not everyone knows how to accomplish it. High impact marketing necessitates more than web analytics and tools like Google Analytics alone.
Marketing analytics utilizes crucial business metrics like return on investment. Marketing attribution and overall marketing performance are also comprehensively analyzed. In simple terms, marketing analytics allows businesses to understand how their marketing department is actually performing. As such, marketing analytics are absolutely crucial for both real-time and high-impact marketing accomplishments.
Tip-: High impact marketing is accomplished through marketing analytics utilized properly.
The Importance of Marketing Analytics
Marketing team professionals are well aware that the only constant is change. Technology is always evolving and marketing teams have been forced to evolve alongside it in order to survive. As technology has evolved marketing strategy and marketing activities have drastically transformed. In the past, when marketing trends changed for individual marketing channels more advanced technology was applied. Additionally, business decisions were also commonly executed based on data marketing channels individually updated. Unfortunately, many marketing teams were left with disconnected and incompatible marketing activities as a result.
Modern day digital marketing necessitates a comprehensive and cohesive marketing strategy more than ever before. Thankfully, marketing analytics offers businesses the opportunity to let their marketing channels work together instead of against each other. Marketing analytics considers all marketing activities comprehensively. This includes marketing activities spanning cross channel and using data most effectively. As a result, data driven marketing team business decisions and increased customer lifetime value are achievable.
Marketing analytics supplies answers to a wide range of common marketing questions. Marketing performance is often the first point of inquiry that marketing analytics is used towards. Gaining an understanding of real time marketing performance allows marketers to plan for long term optimization. Marketing analytics helps marketing teams make data driven business decisions towards even further optimization.
Marketing analytics also assists corporations in understanding how their marketing activities compare to their competitors. For example, if a competitor is gaining new customers quickly, that is important to investigate. Perhaps they are utilizing different marketing channels or strategies that a business can also adopt. Understanding a competitor's marketing strategy can help businesses gain and maintain a valuable competitive edge. As a result, bottom line business profitability and increased market share presence are attainable.
Investing both employee time and company finances towards the correct marketing channels is absolutely crucial. Through comprehensive evaluation of marketing performance, it is much easier to assess if the return on investment is sufficient. If marketing channels return investment is low, funds may be better utilized alternatively. Using data marketing analytics supplies, both long term investments and data driven business decisions are improved. As such, marketing analytics are important in real time and in the long term for high impact marketing efforts.
Web Analytics vs Marketing Analytics
Web analytics measure components that webmasters are concerned with. Components that web analytics measure include click rates and near real time marketing channel traffic. Alternatively, marketing analytics measures business metrics including the conversion rate of new customers and lead generation. Marketing analytics goes beyond business website data using other sources like social media or even in person events. Website analytics focus on page views while marketing analytics is much more people centric. In simple terms, while web analytics helps understand website performance, marketing analytics helps understand marketing performance.
When considering the difference between web and marketing analytics it is obvious that marketing analytics need to be prioritized. Marketing teams benefit from understanding the effectiveness of marketing efforts instead of simply the effectiveness of the business website. Using data marketing analytics supplies, everything from social media to email marketing campaigns can be compared. Marketing analytics help understand which marketing efforts are most profitable. These analytics helps marketing teams better accomplish business goals and evaluate return investment figures.
Another powerful use of analyzing data through marketing analytics is that it helps marketing teams identify any issues. For example, a specific marketing channel may have a deficiency that marketing analytics tools can identify. Then, marketing teams can make sure the deficiencies are properly addressed and any necessary marketing strategy changes are executed. The ability to address marketing performance deficiencies is beneficial in real time and for long term success.
Marketing teams depend on web analytics tools like Google Analytics to help understand their marketing strategy effectiveness all too often. Considering the extensive benefits marketing analytics offer it is unfortunate Google Analytics is ever a sole marketing team resource. Although Google Analytics and other web analytics tools are great resources, businesses must make sure marketing analytics are prioritized. Thankfully there are many analytics tools designed specifically for marketing analytics purposes that marketing teams can utilize.
Although web analytics are useful, marketing analytics are marketing strategy best practices that businesses must make sure to prioritize.
The Benefits of Marketing Analytics
Marketing analytics offers an abundance of benefits to businesses that correctly utilize them. Marketing analytics tools evaluate real time marketing performance and identify areas for improvement. Analytics tools assist in updating outdated marketing strategy and long term marketing efforts optimization. From data driven decision making to marketing automation capacities, the benefits that marketing analytics supply is virtually endless. A few significant benefits marketing analytics offer businesses include-
1. Cross Channel Integration
Marketing best practices stress the importance of cross channel intergration for a high impact marketing strategy. Improvement and optimization of marketing strategy occur cross channel and on marketing channels individually. The overall result should be a powerful and comprehensive cross channel marketing machine. Individual marketing channels ranging from social media to email marketing channels. It is essential to analyze the performance of individual marketing channels in order to understand if the return investment is worthwhile.
Real world examples are helpful for understanding individual marketing channel analysis. For example, an email marketing test may entail sending a test email to a segment of leads. Analytics tools would then indicate the click rate of how many recipients visited the company website from the email. The click rate is the percentage of marketing email recipients that click on an image or link within the email. Analytics tools also supply insight into the lead conversion rate of email marketing campaign efforts. As a result, marketing teams can easily compare the email marketing return investment with the return investment for other initiatives.
Important-: A proper marketing strategy analyzes both cross channel marketing and individual channels.
2. Customer Lifetime Value
Customer lifetime value influences marketing strategy all around the world. Customer lifetime value is commonly abbreviated as CLV and is a well known marketing strategy priority. Customer lifetime value represents the money a customer will spend at a specific business throughout their lifetime. Customer lifetime value is crucial to consider for both marketing strategy optimization and marketing campaign creation. Data driven business decisions are also essential for optimized customer lifetime value. By using customer data correctly, marketing trends can be capitalized on and even more new customers acquired.
While web analytics focuses on webpage views, marketing analytics focuses on the customer themselves. Customer lifecycle value analytics include customer data regarding how a website or product was initially discovered. Using data from customer lifecycle value analytics helps marketing initiatives ranging from lead nurturing to digital marketing activities. Analytics provides information about which marketing campaigns new customers are engaging with most. Additionally, correctly analyzing data helps marketing teams target various specific points in the customer lifecycle. As a result, customer lifetime value is further optimized and high impact marketing directly translates into increased bottom line profitability.
3. Closed Loop Data
Marketing analytics allows marketing teams to see the exact implications of activities on sales. Marketing activities cannot stop at lead generation, they must actually make sure to result in sales. The return investment of marketing activities is based on financial sales that marketing efforts accomplish. Closed loop marketing analytics utilizes customer relationship management platforms to determine return investment of marketing activities.
Closed loop data use helps marketing teams understand which marketing channels are driving sales. For example, social media channels or blogs may draw in new customers but not actually result in sales. Future digital marketing business decisions can use this social media and blog data for improving upcoming marketing campaigns. As a result, marketing teams accomplishing high impact marketing is much more realistic.
Key Marketing Analytics Metrics to Track
Especially with diversified cross channel marketing, tracking key marketing metrics may feel overwhelming. From the CLV/CAC ratio to NPS there are many key marketing metrics businesses must make sure to track. Key marketing metrics to track include-
1. CLV/CAC Ratio
The ratio of customer lifetime value to customer acquisition cost is crucial to consider. Analytics help marketing teams complete this equation and bring insight into marketing campaign effectiveness. The customer lifetime value to customer acquisition cost ratio is considered indicative of a business level of sustainability. Marketing teams can then focus on increasing the CLV/CAC ratio. The ratio can be increased by either decreasing customer acquisition cost or increasing customer lifetime value.
Net promotor score is commonly abbreviated as NPS and is widely considered as a catch all metric. A net promoter score indicates how likely a customer would be to recommend a specific brand to their personal network. A higher NPS is indicative of a high impact marketing strategy and real time business success. NPS also serves to multiply existing market effort success even further. As such, heightening NPS should be a top marketing strategy priority.
Social media marketing campaigns are focused on customer engagement rates. The number of comments, likes, and shares that a social media post garnishes are closely monitored. With social media becoming more and more popular, marketing best practices recognize how important social media engagement really is. Social media engagement is crucial for building brand ambassadors in real time and in the long term future. Unsurprisingly, marketing trends are massively impacted by social media marketing activities. However, marketing teams must make sure social media is being used correctly.
Remember-: Marketing analytics tools like marketing automation and machine learning for social media are useless if not properly utilized.
Benefits of Reporting Software with Marketing Analytics
Too often digital marketing is associated with marketing analytics tools that are ineffective and too time consuming. Utilizing the right marketing analytics tools and reporting software can help accomplish high impact marketing initiatives. Remember, marketing analytics tools like marketing automation and machine learning capabilities are only useful if used correctly. Perks of a properly utilized digital marketing dashboard range from consumer behavior to big data insights. Significant benefits include-
1. Marketing Automation
Marketing automation can use marketing analytics to manage multiple channels. Instead of necessitating marketing team member attention, marketing automation can seamlessly perform real time updates and generate reports. With less marketing team member input needed, accuracy is improved as human error is negated. Especially when dealing with a high traffic website and big data analysis, marketing analytics tools are essential.
Fact-: Excellent marketing automation increases revenue and optimizes marketing performance levels.
2. Big Data Insights
Big data can be incredibly intimidating to marketing team professionals but it is also very valuable. Thankfully, when marketing teams use marketing analytics tools properly big data insights are much more accessible. Big data analytics helps marketing team professionals to leverage real time customer data effectively.
3. Marketing Trends
Understanding marketing trends helps businesses to maintain a high traffic website and accomplish high impact marketing campaigns. Marketing trends can range from voice search engine optimization to shoppable social media posts. Great marketing analytics tools allow corporations to stay on top of marketing trends as they evolve.
Key Takeaways of Marketing Analytics
- When successfully utilized, marketing analytics offer businesses extensive benefits ranging from optimized cross channel integration to increased customer lifecycle value.
- Web analytics and marketing analytics are both valuable resources for marketing teams to use. However, marketing teams should make sure that marketing analytics are prioritized.
- Key marketing metrics to track include CLV/CAC ratio, NPS, and social media engagement.
- Benefits of reporting software with marketing analytics range from marketing automation capabilities to big data insights.