Marketing Analytics, in simpler terms, is the practice of measuring the performance of brand’s marketing efforts.
It helps marketers understand their customers, assess the outcome of various marketing initiatives and make decisions.
With the advent of Big data and data science, analytics is playing a bigger role in marketing.
Benefits of Marketing Analytics
- Ability to understand Customer Behaviour and Respond Proactively.
- Predict customers likeliness to respond to various offers.
- Through social media analytics, identify influencers and engage with them.
- Social media analysis can even serve an early warning system for potential issues.
- Engage with the customer in real time and with the right message.
- Manage Marketing Dollars effectively.
Marketing Analytics Process
Digital Marketing Analytics is typically a five-step process:
Plan: determine what needs to be measured and the data required.
Collect: aggregate data from various systems either through batch jobs or in real time.
Process: clean, aggregate, enrich and store the data.
Analyze: make inferences and derive actionable information.
Report: share clear and actionable information to the business for decisions making.
Various Big data technologies, data mining techniques and data visualization toolsare now available to enable marketers to get the most out of Analytics.
Success of Marketing Analytics
For the best use of marketing analytics, it is important that the team is clear on what they need to measure.
- Which channels are driving most buying customers?
- What is the life time value of a customer?
- Which segment of customers is most loyal?
While the entire process of collecting, processing data and analyzing are important, it is also important to go back and test if the inferences/decisions made are right.
Marketing Analytics – Summary
Marketing Analytics is a critical part of any Digital Marketing Strategy. There are a number of tools available in the market and also niche companies offering the same as a service.
Matured companies are going a step ahead and developing these skill in-house as well.