Marketing analytics is analyzing and measuring marketing data to identify patterns and uncover insights that could improve marketing performance.
Digital marketing is flooded with actionable data. You are swimming blindly if you don’t use tools and techniques to analyze, discover, and interpret this data.
Marketing analytics: Why it is important
Marketing analytics can help answer critical questions for any business, regardless of size. These are some common questions: How do our campaigns perform? Are we investing in the proper marketing channels? What is our performance compared to our competitors?
It is lovely to know these things, but it’s even more rewarding. You can improve your marketing performance by measuring it. You can take action if your Facebook PPC campaigns bring in less traffic. Try improving your ads, moving your marketing budget elsewhere, and then comparing the results.
You might find yourself in a position where you have to set goals for your team, employees, or contractors. These goals can be based on past performance to provide a reference point. What other way can you determine if increasing website traffic by 15% per month is feasible?
Data can be persuasive because it helps you communicate your message. You can use data from past marketing efforts to prove your positive impact on the business. You can also use marketing analytics to make solid predictions and fuel your Marketing Strategy. For example, you could secure a larger budget for the next quarter.
Marketing analytics: How to Use It
Let’s look at how marketing analytics can be used to grow your business.
Report on the Past
Marketers are essential in the past. This is because marketing works in a way that follows this pattern: You first use a marketing tactic. Next, you wait for it to produce results. You then check the results.
Marketing analytics can help you answer questions like:
What volume of organic traffic did your content generate in the last quarter?
What was the difference in the number of new leads Campaign A generated versus Campaign B?
How did trial sign-ups convert to paid subscriptions?
What was the average abandonment rate for carts last year?
Marketing analytics software can automatically track and measure the most critical metrics, which is a good thing—getting these tools set up as soon as possible is essential to avoid data gaps.
Analyze the present
Marketing analytics can also answer “timely” questions, such as patterns in customer behavior, trends, and current budget spending. Here are some examples:
What is the reason for the decrease in organic traffic to our blog?
Which percentage of our customers use [feature] from our product?
What is our customer’s lifetime value?
What is the current Google ranking for the query [query]?
Once you have insights into your past performance and current state of affairs, you are ready to tackle a task marketers are often asked to do, but few can accomplish: forecast the future.
