Marketing Analytics is the process of analyzing, measuring, and managing all the data related to marketing performance of an organization to maximize its effectiveness and optimize return on investment. Today, with every click of the mouse, we are producing data and are contributing to an increasingly large and varied dataset.
While we have access to data, it is important to use it wisely. Marketing reporting software or Marketing Analytics tools are the resources we use to turn this data deluge into valuable insights. Over the last decade, data analytics has revolutionized the art of marketing, and this has allowed businesses to deliver targeted messaging. With such a large spread of digital avenues at our fingertips, the customer journey can look a multitude of ways. We could have 10 different users reaching the same destination through 10 different channels or interactions. This is where understanding the impact of each marketing channel becomes very important.
Businesses these days are lucky, as the need to employ computer programmers to devise data analytics algorithms has reduced significantly. There are several data analytics software to accomplish the analytic tasks. Few of the big names in marketing analytics tools are the SAP, IBM, Oracle, Tableau, Marketo, and SplashBI.
Let us look at the reasons why data analytics is so vital for marketing:
With the use of data extracting tools, businesses interact directly with customers, but even then, there is only so much data that they can collect. It is very important for organizations to understand customers as multi-faceted individuals and augment their data with third-party data. The fact that almost one-third of online users, use VPN (Virtual Private Network) makes extracting reliable data very difficult. However, businesses use cross-device ID tracking to access reliable third-party data to better understand their customers.
Data Analytics helps us to get an insight into what had happened in the past, along with the reasons why it happened. This helps marketing teams in avoiding the same mistakes again. Marketing reporting software not only brings light to what happened in the past, but it also helps in answering specific questions in the future. They help marketing teams in learning, why a specific metric performed well or poorly, and how it impacted the sales of a product.
Data or Marketing Analytics helps businesses tremendously in gauging their marketing efforts. This helps them in taking appropriate measures by either changing, pivot, or make improvements. Businesses these days use dashboards to assess the real-time status of marketing efforts. These dashboards are created using BI practices and marketing automation.
Organizations are using predictive analysis of data analytics to anticipate customer behavior. They use web analytics to track when a customer may leave their website and why. Marketing Analysts use this data to execute specific marketing tactics to retain those customers. Predictive analysis helps businesses in prioritizing leads based on their propensity to make a purchase. With the rise of Big Data, machine learning, and the influx of data, predicting future outcomes have never been this easy.
Businesses combine data analytics findings into marketing objectives to achieve optimal results. This involves gathering the feedback of the customers. It is very important to work on feedback as it bridges the gap between marketing strategy, marketing analytics insights, and activation. Organizations which use a marketing analytics tool, push their data analytics from just learning to understand customers in the context of marketing.
The future of marketing is here!
Data Analytics provides valuable insights which help the marketing teams to work more efficiently in creating a bigger impact on the business. For marketing teams, data is extremely important for analyzing and improving marketing performance. The strategic use of this data contributes to increased turnover.
Over 60% of companies reported that data analytics helped them increase the ROI of their campaigns. However, it is also important for organizations to have the right tools and the right staff who can correctly interpret, manage, and integrate their data. The strategic use of data helps organizations to act consistently optimize their marketing campaigns.
Author Bio –
Swati is a Digital marketing enthusiast with 4 years of experience in digital marketing and content writing. An avid reader who loves traveling and currently exploring Business Analytics software, Oracle Reporting tools and Marketing reporting software.