The key to the right marketing strategy is to connect with the customer whether it is through their habits and behaviors or their desires and needs. Today, customers are more informed and have more data at their fingertips due to the wide use of the Internet and mobile apps. Therefore, business leaders need to use marketing analytics to gather more information about their customer base.
Definition of Marketing Analytics
What is marketing analytics? Essentially, marketing analytics is a strategy where experts and business leaders manage and study metrics data to determine their return on investment in terms of their marketing activities. In addition, this type of analytics can be used to determine areas to improve a company’s marketing strategy.
While marketing metrics are the data points involved in the analytics process, using marketing analytics, you will be able to tell a complete story about the data and consider it in the context of your brand and your marketing efforts. Now that we understand the basic definition of marketing analytics and how it can be used to gather a more complete story about the customer base, it is essential to cover the applications of marketing analytics.
Different Marketing Analytics Applications
One important application of analytics is to ground it directly to the strategy of the company, according to a paper from McKinsey & Company. Essentially, marketing proposals should be measured based on the “strategic return, economic value, and payback window” of each proposal.
You’ll need to also understand your target customers’ spending behavior in order better measure your marketing return on investment (MROI). The buying process has become more dynamic in recent decades and consumer buying behavior is influenced by many different aspects.
For example, a marketing analysis could show that most consumers today are browsing retailers’ websites when searching for home appliances. As such, it is wasteful to put all marketing dollars into display advertising, print, or television.
Another marketing analytics application includes using new sources of data to make better decisions. There are three simple steps that need to be followed in order to use data for better decision making, which include:
- Identifying superior analytical approaches
- Integrating capabilities to produce insights
- Positioning the analytical approach at the heart of the company
When you are trying to identify some of the better analytical approaches, you will need to analyze the advantages and disadvantages of the technology you have at your disposal. You will also need to determine the most effective methods that support your marketing strategy. There are multiple options to choose including:
- Marketing-mix modeling, which uses big data to determine how effective certain marketing channels are for the company. In addition, marketing-mix modeling “links marketing investments to other drivers of sales.”
- Reach, cost, quality (RCQ) heuristics, which put each touchpoint into individual component parts with the use of both data and knowledge-based judgement.
- Attribution modeling, which aligns with the rules or algorithms that regulate “how credit for converting traffic to sales is assigned to online touchpoints.” This may include social media marketing, online advertisements, email marketing campaigns, or a company website.
When you are attempting to integrate capabilities to produce insights, you would benefit from using multiple MROI tools together. Using this integrated approach can help you determine the direct-response data and gain better insights while reducing biases. This can provide managers and executives with the data necessary to move funds toward more profitable and worthwhile marketing efforts.
For instance, a company may spend the majority of their marketing dollars on television advertising. How do they figure out what to do with the rest of their budget? With the help of heuristics analysis such as RCQ, managers can better monitor where their money should go to capture the attention of their non-television-based audience.
Lastly, positioning the analytical approach at the heart of an organization can go a long way in promoting solutions and finding ways to best spend their marketing dollars. If an organization, however, outsources analysis to an outside team, the marketing department may be reluctant to implement changes when the numbers come back because the marketing specialists may not fully trust an outside group.
As such, it is vital for a marketing team to work closely with data scientists, analysts, and marketing researchers in order to create hypotheses and find the right solutions. In addition, companies will need to have specialists who both know the language of business and understand data analytics.
Even creating councils where analysts are taught business goals and the marketing experts learn about how analysis should inform marketing strategies could go a long way in putting data analysis at the heart of a company.
Now that we have covered the applications behind marketing data analytics, it is time to better understand the tools behind marketing analytics and how they can benefit your company.
Data Analytics Tools Useful for Marketing Strategies
There are four specific data analytics tools that can help business leaders better understand their customer base and learn how to make sound product decisions, according to an article from Entrepreneur. These four data analytics tools include:
1. Customer Journey Data Analytics Tools
2. Business Intelligence SQL Analytics Software
3. Data Warehousing Technology
4. Sales and Customer Service Tools
Kissmetrics, Mixpanel, Hubspot, and Amplitude are some examples of customer journey data analytics tools. One of the most useful technological products in this specific sector includes Heap Analytics, which tracks “every user form submission, page view, touch, swipe, gesture, tap, and click-through” on multiple devices.
Business Intelligence analytics tools are responsible for capturing, organizing, and changing data from customers, internal departments, and suppliers. Businesses can then use this data to make actionable decisions in order to boost profits or improve their marketing strategy.
Data warehousing tools are important for transforming data into more straightforward formats so that querying large databases becomes a quicker process for all users. Data warehousing technology was first created to help form enterprise data solutions and get more insight from data that is located in multiple, different systems.
Sales and customer services tools are vital for getting feedback directly from the consumer, which makes it easier to rework a product based on the users’ outlook. This helps improve customer development and ensures the right decisions are made for improving a product’s features.
Incorporating data analytics tools in this way can help a company improve overall operational efficiency. When looking to boost your marketing analytics, finding the right tools can be a significant benefit for your organization. Below we discuss the benefits that marketing analytics will bring your business.
The Benefits of Marketing Analytics
Big data marketing analytics has a wide range of benefits for society today, explains best-selling author Bernard Marr in a post for LinkedIn. First, big data analytics can help companies better target customers and understand their consumer base. The behaviors and preferences of customers can be better defined with the use of big data. In fact, this will help you create predictive models that will benefit your company by boosting profit.
In addition, big data marketing analysis can help you optimize business processes and better understand the language of business. For example, retail companies can better optimize their stock using predictive models that are produced using social media data, weather forecasts, and website search data.
“HR business processes are also being improved using big data analytics. This includes the optimization of talent acquisition – Moneyball style, as well as the measurement of company culture and staff engagement using big data tools,” wrote Bernard Marr in the LinkedIn post.
In addition, Marr explains how, along with boosting marketing techniques, big data analytics can be used to find and prevent cyber attacks in order to secure servers and tools. Clearly, big data analytics has many benefits to a company especially when it comes to understanding the customer base and creating predictive models to better target the sought-after consumer.
Lastly, it is important to consider the benefits of project management software that can help you better organize your marketing projects and analyze relevant data to improve employee performance.
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How Project Management Software Assists with Marketing Tasks
You will find that project management software such as Runrun.it software will help assist you with marketing assignments and projects. Essentially, Runrun.it software will help you better organize your marketing projects by delegating tasks quickly and easily and tracking the amount of time it takes to complete certain assignments.
In addition, this project management software product includes a place to leave comments between users so that every team member knows the changes and revisions an assignment has gone through.
Lastly, Runrun.it software can help you by providing data that allows you to see the number of revisions a project has moved through as well as data that can help you better price your products or services. If you’d like to see whether Runrun.it project management software is a good option for your company, click here for a free trial.