Marketing analytics is the practice of measuring, managing and analyzing marketing performance to maximize its effectiveness and optimize the return on investment (ROI).
The understanding of marketing analytics helps the marketers to bring in more efficiency at their jobs and minimizing the wastage of web marketing dollars. It is found that with the effective use of analytics, companies can save up to 15-30% of their total marketing budget. It also helps in discovering customer preferences and trends.
Importance of Marketing Analytics–
The importance of marketing analytics is that it not only provides a clear picture about the marketing efforts of the company but also allows you to monitor campaigns that can easily facilitate the saving of resources.
The below-mentioned points are sufficient to understand as to why marketing analytics is the need of the hour for every business no matter what the field is-
As it allows you to monitor campaigns and their respective outcomes, it enables you to spend each dollar as effectively as possible. Out of the number of programs your company started, it allows you to easily depict which programs worked and which didn’t and the reasons of their success or failure. Marketing analytics helps in forecasting the future results with the help of market trends. It allows the understanding of the return on investment as you can track the working and reports of each and every program. As it considers all marketing efforts across all channels over a period of time – it is the best tool for sound decision making and effective and efficient program execution. It also helps in comparing your results with your competitors.
What can you do with marketing analytics?
With analytics, you can get the answer to the following questions-
What is the performance of our marketing initiatives today? What will happen in the long run? What can be done to improve them? How are our marketing activities performing as compared to our competitors’? How are our competitors using their time and money? Is there any difference between the channels used? What should be our next move? Are we properly allocating our marketing resources? Are we using the right channels? What should be our priorities going ahead? Some Methods of Marketing analytics- –
- Marketing mix modelling (MMM)
It involves the usage of big data in order to check the effectiveness of investment per channel. It involves linking marketing Investment to other sales activities. It is effective for long term and short term as well. But it requires a lot of quality data and time that is why very less marketers use it.
- Test Groups
The usage of test and control groups requires a little extra strategy from the start—you have to plan a program to be test-able. The goal is to apply the factor you want to measure to one part of your target market. So, make sure you divide your audience into two groups that match up on other basic metrics.
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