Marketing Analytics The Way To Interpret Your Data And Metrics
Without proper analysis, it is impossible to know what is happening with your campaigns to focus on what works and stop wasting resources on what does not. Therefore, we will see some keys to marketing analytics that will help you be a more efficient marketer.
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What Is Marketing Analytics
The marketing analytics or marketing analysis is the practice of measuring, managing, and analyzing your business results to optimize them. To do this, it uses information gathered through different channels to create a unified vision.
From this view, the marketer can obtain information to draw conclusions that guide their next actions and make them more useful. Marketing analytics encompasses many metrics, among which key performance indicators or KPIs play a unique role.
Some Examples Of Them Are:
- The Return On Investment or ROI: A percentage that expresses a specific marketing campaign’s profitability based on its ability to obtain conversions.
- The Average Value Of Time To Live or LTV: The income that a given customer brings to the company during the entire time they are buying your products or services.
- The Cost Per Acquisition or CPA: The cost of turning a new user into a company’s customer.
Why Do Marketing Analytics
- Because It Turns Data Into Information: Today, most companies have access to customer data in one way or another. But to take advantage of them, it is necessary to analyze, process, and convert them into useful conclusions for your business.
- Because It Helps You Compare Actions & Channels: Marketing analytics allows you to compare different data sets against each other and answer questions such as whether it is more profitable to advertise on Google or on social media or which demographic groups convert the most. This way, you can focus your budget on what works best.
- Because It Allows You To Back Up Your Claims: When it comes to getting a budget for a new SEM campaign, it is much more compelling to say that the last Google Ads campaign had a 250% ROI than to claim that paid advertising brings in more customers. Also, with the proper analysis, you will be able to explain what happened and why.
- Because It Helps You Achieve Your Marketing Goals: All online marketing actions should be oriented towards a global objective, for example, increasing lead generation or sales. Marketing analytics makes it possible to know how we are progressing on that path and to correct the course whenever necessary.
Also Read: What Is Conversational Marketing
Acceptable Practices For Doing Marketing Analytics
Take A Strategic Approach
The amount of data you can collect with marketing analytics tools merely is overwhelming, so you need a system to be able to filter and focus on the essentials.
To achieve this, one of the first steps in the analysis will be to establish your primary and secondary KPIs based on your objectives. This way, you will know, for example, that what is essential is the click-through rate on a link to your landing page and not the number of “likes” on a Facebook post.
Segment The Data
If you segment your visitors and customers based on their characteristics or behavior, you will have much more specific data, and you can see things more clearly.
You can filter users by age, gender, education level, family situation, and much more on a demographic group. And in terms of their behavior, it might make sense to see how your regular customers compare to those who abandon the cart on their first purchase, for example.
Understand Your Business
There is no single way to do marketing analytics, but each company and each sector has a particular situation.
Therefore, before deciding how you will approach your analysis, you have to think about what makes sense for your business: if it is a B2B or B2C company, in which sector it is located, what type of audience are you targeting, how is the customer journey.
Monitor The Quality Of The Data
In marketing analytics, more does not always mean better. You don’t ever need to have more data, but better data. These parameters will help you evaluate the quality of your data :
- Are they up to date? Online marketing operates in almost real-time, and consumer habits can change in no time, so you have to keep up to date.
- Are they complete, or do they have gaps to take into account?
- Are they error-free?
- Are they accurate enough for the analysis you want to do? If not, is it possible to segment them further?
- Are they relevant to your marketing goals?
See What Doesn’t Work.
Marketing analytics allows us to identify our strengths, but it is equally important that we see what is not working. For example, if there is a sudden drop in sales, you should analyze the data to try to find the reason and solve it as soon as possible.
Although it may seem that marketing analytics is a 100% objective science, the truth is that people are not. When we have a lot of data at our disposal, it can be very tempting to focus on those that agree with our previous hypotheses. Try to be aware of this possible error and focus on the KPIs that you have previously defined.
Think About The Future
We can distinguish between two main types of marketing analytics: the descriptive and the prescriptive. The first helps us to know what is happening, but the second is the one that is valuable for the results of the company. The predictive analytics can answer questions like:
- Would you have better results if you put more money into this campaign?
- Does it make sense to move this same campaign to another platform?
- How many conversions can I expect in this new market?