What is Marketing Analytics?
Marketing analytics is the processes and technologies that permit marketers to evaluate business marketing metrics and overall performance. Establishing an excellent marketing analytics practice is an increasingly popular business top priority. Considering the massive benefits that marketing analytics offers organizations the increase in popularity is unsurprising. Marketing analytics is the practice of evaluating and managing data to determine the return investment of various marketing efforts. Examples of marketing efforts range from google ads to social media marketing campaign posts. Key marketing metrics including leading indicators and diagnostic marketing metrics are carefully assessed.
Studies show that 78% of B2B marketing executives measure the return on investment, commonly abbreviated as ROI, of marketing programs. Studies show that marketing teams that invest in managing and measuring performance produce added value. In fact, these marketing teams accomplish 7% higher growth performance and 5% higher return investment rates. When marketing teams use marketing analytics properly revenue growth will likely swiftly accelerate. Bottom line profitability is especially enhanced when marketing metrics such as customer lifetime value and customer acquisition rates increase.
Marketers must make sure to use marketing mix best practices for maximized ROI. For example, marketing activities best practices like cross channel reporting are too often overlooked. Cross channel reporting allows marketing teams to compare results from various marketing channels simultaneously. The research on cross channel marketing is remarkable, 95% of marketers report recognizing the importance of multi channel for targeting. However, 51% cannot react to new marketing channels and marketing trends due to their business's current technology. The fact that only 14% of organizations report they are able to run coordinated cross channel marketing campaigns is disturbing.
Businesses must make sure that marketing teams have access to proper marketing analytics tools and software. With proper marketing analytics tools and software, businesses are much more likely to accomplish high impact marketing initiatives. In fact, an integrated analytics marketing approach can free up the marketing budget by 15-20%! Marketing teams must make sure to use data marketing analytics supplies to increase performance and return on investment. The data analytics supplies not only helps marketers optimize marketing but also serves conversations with stakeholders. To best increase return investment and accomplish high impact marketing it is essential to understand marketing analytics core components.
High impact marketing performance is dependent on the accessibility of powerful insights. In fact, a proper marketing analytics practice considers data driven insights absolutely foundational. Marketers use data driven insights to help understand where improvements are necessary or beneficial. Marketing data access should not require a business analytics professional level of expertise. Instead, businesses must make sure that marketing team professionals have access to user friendly dashboards.
Access to analytics allows marketers to analyze anything from broader marketing trends to more specialized paid search Google ad success. Accessibility must also cover marketing tools utilizing machine learning to help understand marketing data that is more complex. Access to marketing analytics helps marketers to even further optimize their marketing performance through insights. For example, everything from the cost per new customer acquired to email marketing click rate is easily referenceable.
There are many data platform options that help marketers with big data processing. A big data platform is an analytics tool that increases the marketing performance of big data driven organizations. A big data platform is designed to handle in real time both multi structured and voluminous data.
Marketing attribution is considered crucial for both proper return investment calculations and marketing budget formation. Marketing attribution shows the return investment on various digital marketing initiatives. Studies show that 72% of marketers agree that marketing attribution results in better marketing budget allocations. Additionally, marketing attribution results in clearer customer data insights.
Marketing attribution is important for enhancing both the customer journey and customer lifetime value. The customer journey includes all of the experiences and interactions a customer has with a business. The customer lifetime value represents the sum a customer is expected to spend in a business during their lifetime.
Marketing attribution analyzes customer data from a range of sources including social media and search engine optimization. Marketing attribution tracks customer data and interactions throughout the customer journey stages. Unfortunately, complete marketing attribution necessitates access to offline customer data that is difficult if not impossible to obtain. However, with the marketing data that marketing attribution effectively collects both the customer journey and customer lifetime value are enhanced.
3. Time Series
Marketers use time series analytics to help understand important marketing metrics and business metrics. Time series analytics is marketing data that is beneficial for both data driven business decisions and forecasting. Time series analytics comprehensively evaluates the past which is crucial for accurately forecasting the future. Marketers use time series analytics to help understand complex marketing trends and marketing performance data.
Time series analysis helps marketers make sure marketing data is recorded at set intervals instead of randomly. Without time series analytics, marketers often must take data screenshots in order to analyze marketing metrics for prior time periods. Unfortunately, many marketing analytics tools and analytics platforms are operational. Without time series analytics capabilities, historical marketing data may not be stored, resulting in notable issues for marketing team professionals. A lack of time series analytics capabilities can significantly drain a marketing budget and decrease marketing team morale. Marketing teams must make sure before purchasing an analytics platform or marketing analytics tools that time series analytics are incorporated.
Key Takeaways of Marketing Analytics 101
- Proper analytics helps marketing team professionals to make sure business decisions are data driven and overall marketing performance is optimized.
- Key components of marketing analytics include valuable insights, marketing attribution, and time series analytics.