What is marketing analytics?
Marketing analytics encompasses the technologies and processes that measure, manage, and analyze marketing data so you can make effective and efficient decisions about marketing activities.
The insights gained from marketing analytics can help you understand how well your marketing initiatives are working, their contributions toward achieving business goals — and which aspects of those activities can be improved or repeated for better results.
Importance of marketing analytics
Marketing can be one of the largest cost centers in any organization. When sophisticated marketing analytics tools are applied to mine and analyze data, teams gain valuable insights into preferences of current and prospective customers, market trends, and campaign performance.
Those insights can drive more efficient and cost-effective efforts, helping marketing teams better demonstrate ROI. Demonstrating measurable value to an enterprise helps justify the budget allocation and spend necessary to expand marketing efforts.
Before advanced marketing analytics were available, companies had to rely on time-delayed measurements of the effects of a marketing initiative, channel by channel. That siloed data offered broad insight into the process of buying, rather than explaining the experience of the individual consumer.
Today, marketing analytics can provide deeper insights into audiences at an individual level, as well as highlight how each channel contributes to driving customer acquisition and revenue.
Benefits of marketing analytics
Marketing analytics allows you to better understand your prospects and customers, as well as how marketing initiatives have worked previously and are working in real-time. Through marketing analytics, your company can closely measure and monitor every campaign and demonstrate their contribution toward company goals. The benefits of marketing analytics include helping you to:
Understand your audience
Marketing analytics helps you better understand your customers and your prospects along the entire buyer journey. Through marketing analytics, you can learn how their interests and values drive engagement with your brand — and where they are entering (or dropping out of) the conversion funnel.
When you can identify important trends — such as how your customers engage with your brand, or how your marketing initiatives are working — you can take quick action to capitalize on those trends or reverse them. Marketing analytics helps you see the big picture regarding market trends and provides insight to help you predict (and manage) future trends.
Measure performance and KPIs
Marketing analytics help you understand how well your marketing initiatives are working to achieve business goals or key performance indicators (KPIs). By tracking the KPIs most relevant to your company’s goals, you can appropriately adjust marketing strategy and budgets for higher positive impact. Learn more about how to create insightful marketing reports using KPIs and goals by downloading our whitepaper.
Marketing analytics can help ensure you’re using marketing spend as efficiently and effectively as possible. When you analyze data about your marketing campaigns, you can see which campaigns are most effective and identify areas of improvement to optimize. You can also see which campaigns are not performing and pause or discontinue them.
Forecast future results
Marketing analytics allow you to use historical data about customer behavior to identify likely future outcomes of marketing initiatives and strategies. This data can make decision-making across your organization more effective.
Marketing analytics examples
By measuring and analyzing marketing performance, you can better drive leads, improve conversion rates, and manage spend. Business intelligence from marketing analytics can help you uncover insights that accelerate marketing performance in many ways.
Make better decisions
When you want to make sense of all the data across various marketing channels, marketing analytics tools can instantly connect with and explore that data for enhanced decision-making.
Marketing teams need to understand what is happening — and when — with every campaign. Marketing analytics tools can offer features like alerts and scheduling as well as automate data reports in a way that makes your marketing team’s workflow easier and more efficient.
Predict customer lifetime value
Marketing analytics combined with sales or financial data can help predict and enhance customer lifetime value. This data helps marketers optimize spending to impact any number of initiatives, including customer acquisition strategy, campaign targeting, customer retention, and customer service.