To stay a step ahead of competitors, businesses must use marketing analytics to uncover patterns and data that can help optimize campaigns. Analyzing data helps a business earn a higher return on investment (ROI) on marketing decisions. Analytics also benefits consumers. It ensures they see more targeted ads that are personalized to resonate with their needs and interests.
It’s been shown through a study that businesses who use five or more marketing analytics tools are 39% more likely to see improvement in the performance of marketing campaigns. It’s important to make use of different tools to gather as much broad & granular data as possible. In turn, businesses are able to more accurately gain insight from the data to base their decisions on.
How Businesses Use Marketing Analytics Data
The process where information is brought together and delivered in summary form is known as data aggregation.
To get the most complete picture, businesses should aggregate data from every marketing campaign so that they can be compared against each other. In turn, all of this information should be translated into one primary data aggregation that can inform the business on how their products are performing across different channels, demographics, etc.
Businesses most often make use of data aggregation in areas like how to measure key performance indicators (KPIs), budget allocation, product development, and more.
Data mining is the process of analyzing large batches of data and discerning patterns within it. A business is able to use data mining to get a comprehensive view of its consumers. In turn, this can allow a business to exploit new market opportunities.
Through data mining, a business can learn more about customers’ purchasing histories, preferences, demographics, and much more. For example, a company could use data mining to create a list of products with the highest sales. They could then use these analytics to make target ads with these relevant product suggestions.
Data mining is also useful to help influence consumers in real-time. Let’s use Amazon as an example. When a customer purchases a product, Amazon will make product recommendations based on what other customers have purchased in addition to that specific product.
Known as predictive analytics, this is the process where data and past trends can help inform what a business can expect in the future.
In this digital age, consumers have more choices at their disposal than ever before. They’re no longer limited to whatever can be found at the local store. Instead, consumers can order what they want, when they want, from online. This means that companies must compete with each other even more fiercely. To remain competitive, businesses must be able to predict consumer trends.
That’s where predictive analytics comes in. This process allows a business to understand consumer trends, predict future shifts, and plan accordingly. Through this process, a business can forecast what types of products and advertisements will help generate an increase in sales.
The real value of marketing analytics data is how it gives businesses the insight to optimize their marketing strategy.
Only about 17% of marketers are using landing page A/B tests to help improve conversion rates. In order to be able to create an informed A/B test, a business must use marketing analytics to optimize two separate landing pages. From there, further optimization occurs by testing the two pages and then ultimately prioritizing the landing page that performs best at converting leads.
A business should use optimization as part of its marketing strategy because it helps them identify weaknesses and then make improvements accordingly. This prevents the marketing efforts of a business from becoming less relevant.
For example, consider the perks of technical optimization. According to Google, the bounce rate for pages that load between 1 and 10 seconds increases by 123%. However, the bounce rate only increases by 32% for pages that load between 1 and 3 seconds. A business could take this knowledge and ensure to optimize all site pages to have fast load times to help reduce their bounce rates.
Businesses can take marketing analytics to do data visualization. Data visualization uses data to create visual elements to tell a story. This helps make data more accessible and engaging.
There are various types of data visualization that a business can use, such as infographics, charts, and diagrams. When using data visualization, it’s important for a business to remember to keep a key objective in mind and to add context.
Keeping a key objective in mind for data visualization prevents it from becoming cluttered and confusing. In addition to this, context ensures that the data visualization has clarity and that the reader is able to understand it easily and derive value from it.
What Metrics Should I Be Measuring?
Build brand awareness
Brand awareness is how familiar a target audience is with a brand. A brand that has high brand awareness is often referred to as “trendy” or “popular.”When a consumer feels a connection to a brand, they are more likely to become a repeat customer. In essence, brand awareness efforts help humanize a brand and give it personality.
Brand awareness is also important for the continued success of a business because it builds brand equity. A brand’s value is what is known as brand equity.When a brand is in high demand and has an overall positive perception from consumers, then a business can have:
- Higher prices on products because of a higher perceived value
- Larger social impact
- Higher stock price
Brand awareness is the building block to having brand equity.
Lead generation is the process of capturing a consumer’s interest in a product or service with the intent of having their journey down the sales funnel. Incorporating lead generation can help build brand awareness, generate qualified leads, and help close deals.
It’s essential for a business to monitor lead generation so that it knows if its budget is being put to good use. As data is gathered, businesses can gain a deeper insight into the customer journey.
Conversions can have different definitions based on what the business is wanting to measure. In a broad sense, conversions can be interpreted as any meaningful interaction with a product, such as how many views a product page gained. However, in most cases, businesses are concerned with the type of conversions that deal with verified sales.
When a business tracks conversions, it can help with making smarter marketing decisions. A business can identify what keywords work best to generate conversions, which then informs the business where to focus efforts for future campaigns.
Increase web traffic
Increasing web traffic is a vital part of running a business with a site. When there’s a steady flow of visitors to the site of a business, then marketing funnels get prospects, and sales naturally grow.
Marketing analytics can help analyze a website and tell a business how users navigate it. This analysis can then help a business develop strategies for its site that will better attract more people.
If a business wants to track its web traffic, then it should monitor things like referrals, keywords, and its most visited pages.
When it comes to search engine optimization (SEO), measurement is the key to success. By using marketing analytics, a business can find out who its audience is, what they’re searching for, how they found the website, how long they’re staying on the site, and much more.
There are numerous benefits to monitoring the SEO performance of a business.
For one, it can provide data on how to improve the navigation structure of the website. The website’s navigation matters because it affects factors like how long people stay on the website, whether they visit different pages, etc. The easier a navigation structure is, the more effective it is at directing leads through the sales funnel.
Next, marketing analytics can inform what organic search queries a business is currently ranking high for and then build content around that. If the website has a search bar, data analytics can reveal what people are inputting into the search bar to find on the website.
Beyond that, SEO can be improved through marketing analytics by learning what site page needs its loading speed improved, what high-performing blog posts can be converted into lead magnets, and much more.
Establish brand identity
Considering there are billions of businesses out there, it’s crucial for a business to have a strong brand identity to help it stand out amidst the competitors. Brand identity consists of what a brand says, what its values are, how it advertises its products, and what it wants people to feel when interacting with it. At its core, the personality of the business is the brand identity.
Once a business has a strong brand identity, it can use this to attract new customers. Once these people become customers, brand identity helps to boost brand loyalty. When a business monitors brand identity, it is keeping an eye on how people talk about and interact with the brand. This then enables the business to make changes to the brand when needed.
Data Must Be Analyzed To Be Valuable
Marketing analytics can help a business improve in multiple areas. Collecting data is meaningless without analyzing it to gain actionable insight. Once a business learns how to effectively employ marketing analytics, it will be able to discover how to more efficiently reach key objectives.