7 ways of Marketing Analytics

Marketing Analytics

Marketing analytics is the process of collecting, tracking and analyzing the data from marketing efforts, used to reach a specified objective, mostly quantitative objects. Insights and interpretations derived from this process enables organizations to improve their customer experience, increase their return on investments based on promotion or other marketing efforts and develop future marketing strategies. Basically, it is the study of collected data to evaluate the performance of marketing activity that has been conducted.

According to a report conducted by PwC, highly data-driven companies are three times more likely than their less data-driven counterparts to see significant improvements in decision-making. It is a Math based discipline in which by applying technology and analytical processes to marketing related data, businesses can understand what drives consumer actions, refine their marketing campaigns and optimize their returns.

Where does Marketing data come from:

The data for performing those analytics should be collected prior to the process being started, it can be said that collection is the first step. The collection of marketing data comes from three different categories;

First party data: which is collected directly from consumers by the organisation itself, it is considered to the be valuable data.

Secondary party data: is the data that has already been collected by other organizations and its been shared, more specifically used for joint ventures or partnership projects.

Third party data: data that has been collected by organizations that specialize in data collection, isn’t considered to be reliable as it is not directly from the company’s customers or a trusted source.

While, it is important to know and understand all three types of data sets, first party data is the most reliable because it comes directly from the organization’s customers and a trusted source.

Marketing Analytics Process:

In order to get the maximum value and reward from marketing analytics, these steps should be followed;

Step1: Determine the objective function: An organisation should set the objective clearly, and understand the problem that the company wants to solve.

Step2: Set a benchmark: setting a standard in regards to where the decided metric is supposed to reach.

Step3: Access current capabilities: The organisation needs to understand where they currently stand and their weak points which can help them strengthen the program and improve efficiency.

Step4: Use a marketing analytic tool: This will make the process easier and save time and costs, moreover, it will help identify messages that resonate with the target audience.

Importance of Marketing Analytics:

Marketing analytics is important because it helps an organisation understand the customer and marketing trends that are currently happening or can also help in predicting the future market trends, it also provides the organisation with a clear picture of the efforts made and the returns generated in response to those efforts. Furthermore, it also helps in analyzing trends over time while also allowing to analyze and understand the return on investment. Moreover, with the knowledge and numbers collected it helps in planning future marketing strategies for the organisation.

The marketing analytics is an important process that is a math-based discipline, it helps the companies in understanding current market trends and predict future market trends with the data collected through the Marketing Analytics tool. It also helps the companies in understanding and relating to the return on investment of marketing actions taken by an organisation. Today it is widely used by a large number of organizations in order for improvements in their process.