Marketing Analytics

A math-based discipline that tries to find patterns in your marketing data to generate actionable insights that you can use in your marketing strategy to improve your marketing effectiveness. Analytics uses statistics, predictive models, and machine learning to provide insights and answer questions. Weather forecasts, averages and life insurance are the result of the analysis. In the world of digital marketing, analytics is key to understanding marketing impact and predicting marketing trends, user behavior, and optimizing user experience (UX) to increase sales.

What is marketing analysis?
Why is marketing analysis important?
Use marketing analytics to improve business growth

word list
marketing analysis

Marketing Analysis

A math-based discipline that tries to find patterns in your marketing data to generate actionable insights that you can use in your marketing strategy to improve your marketing effectiveness. Analytics uses statistics, predictive models, and machine learning to provide insights and answer questions. Weather forecasts, averages and life insurance are the result of the analysis. In the world of digital marketing, analytics is key to understanding marketing impact and predicting marketing trends, user behavior and optimizing user experience (UX) to increase sales.

We live in the age of accessible data.

At home, you can use your smartphone to access data about your exercise habits, sleep patterns, and even medical records. At work, you can use text files known as cookies and other similar tools to collect information about your customers.

You can learn just about everything you need to know, from the types of products your customers buy to the age groups that visit your site the most. And you can break that data down into separate levels if needed.

In the end, it's not the data that matters, but what you do with it. Its strength in the aggregation and interpretation of data, which is part of a process called marketing analysis.

What is marketing analysis?

Mathematics-based discipline focused on finding patterns in data to generate actionable insights. Analytics uses statistics, predictive models, and machine learning to provide insights and answer questions. Weather forecasts, averages and life insurance are the result of the analysis. In the world of digital marketing, analytics is key to understanding and predicting user behavior and optimizing the user experience (UX) to increase sales.

Here are 2 main goals of marketing analysis:

To assess the effectiveness of your marketing efforts, measure the effectiveness of your marketing efforts.
To determine what you can do differently to get better results from your marketing channels.

Together, these processes enable you to turn raw marketing data into an action plan and get the most out of your marketing investment.

Why marketing analysis is important

Analytics is more than just a cool addition. This is one of the best ways to understand the customer journey and understand what works and what doesn't in your campaigns. And having this information is critical to your future online marketing efforts.

Here are some things you can do with marketing analytics:

1. Evaluate your claims

The numbers are convincing. You can tell your CFO that content appeals to customers, or you can tell them that 72% of marketers believe content increases customer loyalty.

Most likely, the second will provide you with financing. People are more interested in your claims when you add relevant statistics.

Without specific marketing data, such as pre- and post-campaign ROI, you can only think in general terms. Either your earnings increased while a particular ad was running or it didn't. You either got more mailing list signups after posting pay-per-click (PPC) ads, or you didn't.

Analytics now allows you to collect data and determine the true impact of a given campaign on your marketing impact. If you have 100 email suggestions on the first day of launching a PPC campaign, how many are related to the ad itself?

If you can determine whether the marketing initiative itself has worked, it will be much easier to get financing. And if it doesn't work, you can save money to continue the initiative.

With marketing analytics you can clearly show not only whether something works or not, but also why. And with that, why can you convince people to change things?

2. Convert data into information

Most businesses today have access to customer data and web analytics tools. The difference is whether your company uses this data or not. According to the Harvard Business Review, it's on the server too often and doesn't do anything special. At worst, it can be misunderstood and abused, leaving your marketing team confused.

In order for your data to become useful information, you need to put it through proper data analysis.

Example: At the start of your ad campaign, your income is about $10,000 per month. After your first campaign, you can earn up to $15,000 per month. Is it worth investing in the same ad again?

Does it depend on whether there was an increase in sales in the industry this month? Perhaps your products have become popular for other reasons. Did you have any other advertising then? How many of your customers actually came through this PPC ad?

Data analysis answers these questions. These answers help you make decisions based on facts, not guesswork, in your marketing program.

3. Compare and contrast your marketing data

With Analytics, you can go further and compare your datasets. For instance:

How does your paid search, social media marketing, or organic search compare to your scores?
Were there differences in income between demographic groups?
How does your PPC campaign ROI compare to your Facebook ad campaign ROI?
How much did your PPC campaign generate on first sale compared to lifetime income? Your ad campaigns, content initiatives, and customer groups are all interdependent. By understanding intersections, you can remove irrelevant information and make better decisions based on your unique business goals.

4. Focus on your goals

Each of your marketing elements has a purpose, be it increasing sales or driving more traffic to your business website. The more you analyze and use your data, the more you know about your progress toward your goals.

With marketing analytics, you can measure that progress and identify where the problem if progress isn't as fast as you'd like.

Let's say you run an ad campaign on Facebook and your ROI is just under 3:1.

His team tells him to try something different, but he's looking at analytics. You notice that your ad has a high CTR, but your landing page bounce rate is high.

The PPC campaign was no problem. But without a good analysis you would never know.

Use marketing analytics to drive business growth

The data itself is just numbers. You benefit from using this data to focus your marketing efforts on what works, rather than what doesn't.

Segment customer data

By segmenting customer data based on specific characteristics or activities, you can get more specific (and actionable) data. You can segment based on the demographics of each customer that impacts your results. This includes:

Age group
sex
the level of education
Annual sales
family situation
Geographic position

You can also segment the data based on consumer behavior and sort by customers who:

Drop off your shopping carts
Browse product pages without buying
Shop regularly from home
I haven't visited your site in a long time

This segmentation allows you to filter your data by relevance, taking what you need and leaving what you don't.

Imagine you have a large group of shoppers abandoning their shopping cart. They want to know if Facebook or email is the best way to get them back into their cart, so run a series of tests.

They believe that email delivers a higher ROI, but only if you use language that conveys a sense of urgency. This information ensures that you don't have to chase abandoned shopping carts in places you're not looking for.

Make sure you have high quality data

A good analysis can only be done with high-quality data. Data from five years ago isn't relevant to your marketing campaigns this year, and if there are gaps in the data, they may not be relevant at all.

For data to be of high quality, they must:

run
Complete, no spaces
Without making mistakes
Accuracy needed for data analysis
Relevant for analysis

Marketing analysis should always be focused, so the last point is the most important. You can use old or incomplete data if you handle it carefully, but if the data doesn't meet the needs of your campaign, you can skip it.

Look to the future

It is no longer enough to know what happened in the past or what is happening now (although real-time analysis is important). For more effective marketing, it is also important to predict what will happen in the future.

Fortunately, you don't need a crystal ball for this: predictive analytics can help you envision the future. These tools use specific data and past trends to determine what results can be expected under different circumstances. You can use predictive analytics to answer questions like:

Does a search engine campaign produce better results if more money is spent on it?
Will a search engine marketing campaign work well on one platform or the other? For example, does an email campaign lead to a Facebook ad? Do your Facebook ads work on Instagram?
How much revenue could you generate with your social media marketing campaign in a new market? You don't need to overcomplicate predictive analytics, but taking the time to do it can help determine whether or not what you're doing is working.

Look at what doesn't work, not just what works

It's good to focus on your strengths, but don't stop there. You can learn so much by spotting gaps in your marketing efforts. If you see a sudden drop in sales, could anything from your analysis explain why?

Look for where your content is ineffective, but remember to stay positive and focused. Treat your gaps as opportunities and use your analytical tools to figure out how to close that gap.

And if you make changes, don't forget to collect and analyze data to see when things improve.

Appetizer

Every marketing project is a process. Marketing analytics can help you determine what to focus on during this process and find the right marketing mix for your business. Remember to follow the scanning guidelines:

Ask questions that need answers
Collect quality data
Select the information that interests you
Think of the past, present and future

Sometimes the answers you get raise even more questions. If so, you can repeat the analysis process and learn even more about your marketing efforts.

What is marketing analysis?

Marketing analytics contextualizes data collected across all marketing channels and shows how a company's marketing plans and efforts translate directly into revenue. CMOs and marketers use these technologies and processes to successfully measure and improve the effectiveness of their marketing campaigns. Marketing analytics methods study metrics from all sources and channels and combine them into a single view to summarize the effectiveness of marketing initiatives.

What are the benefits of marketing analytics for companies?

Marketing analysis has many business benefits. High-performing teams use their data to:

Determine the effectiveness and return on investment of marketing campaigns.
Identify areas of success and opportunities for improvement.
Provide valuable support to advance your marketing efforts.
Learn what happened and what's happening in marketing campaigns, and how to predict, target, and optimize future marketing efforts.

Analytics describes the repeated discovery and interpretation of data that can help identify trends and measure the effectiveness of marketing activities.

This data can be collected using tools or can be found manually on various marketing platforms.

Marketers use analytics to understand:

Determine the effectiveness of channels and tactics.
behavior of the public.
Measure sales and ROI.

Extra

Marketers have many tools to collect and analyze data. Here are some examples:

Google Analytics
mixed table
Kissmetrics
Major Analytics Platforms (G2 Crowd)

Marketing analytics is an umbrella term for a market that includes analytics capabilities within end-to-end marketing platforms and specialized tools. These platforms and tools allow marketers to collect, analyze, model and visualize data to optimize marketing and advertising campaigns by better understanding potential customers and their behavior across all channels.

Measurement and analysis of marketing activities to improve efficiency. Google Analytics is the best SEO tool used by marketers. (Hubspot, 2020)