Several companies are running their businesses based on a great idea. It is one of the main components of doing business. Another essential component that is required in a business is marketing. As the world is rapidly progressing, it becomes inevitable to understand marketing analytics to get ahead with the increasing competition. The broad topics covered in marketing analytics are how the customers perceive a product and its utility, how suppliers come to a consensus with the terms, and how a business can maintain a long-standing relationship.
What is marketing analytics? Meaning and definition
Marketing analytics means the study of data obtained through marketing campaigns that could impact business growth. It involves customer-supplier relationships, behavioural patterns, geographical differences, creative preferences and much more. Such understanding is extremely beneficial to ensure a company’s environmental changes, opportunities and threats so that a power-packed solution can be prepared for a favourable future. It enables the business to know whether an investment in marketing would benefit the organisation before actually rolling out its strategy.
Importance of Marketing Analytics
Considering how smartly the businesses function, it has become highly crucial for businesses to strategise their plans correctly and properly. Customers and suppliers are highly selective in choosing one over another. So if businesses want to make their impression, they should use smart tactics for creating targeted advertisements for customers’ interest. It is a proactive approach and is effective for engaging customers in real-time.
How organisations use Marketing Analytics
As organisations strive to get unbiased data, they will focus on the following factors after data is gathered from campaigns. These factors help in boosting the confidence of the business and rectify the shortcoming that could otherwise be a hurdle, such as:
- Product Intelligence
Product intelligence aids in defining the product’s brand and how it could hit the market. This is usually done by getting customers’ feedback, surveys, polls on social media, or other techniques. This will also make the business understand what is expected of their product and what they lack to gain a better share amongst other competitors. Such a careful study will make the business focus on things that need improvement
- Customer trends and preferences
Trends are a pattern that analyses history and makes future judgments based on a pattern. Since customers are considered the king of the market, it is essential to understand what message or creativity resonates with them. What a customer buys and how will they researches or gains knowledge of the product, the kind of ads a customer would like to watch and ignore also has a profound impact on their buying habits.
- Product development trends
Marketing Analytics helps to understand the possible developments into a product that could make a business successful. The development department can use this information.
- Customer support
One of the importance of Marketing Analytics lies in customer support. Marketing Analytics helps to understand what the customers want, how it can be improvised or made customer-friendly.
- Messaging and media
Along with the traditional media, digital media is gaining a massive share amongst the youth and urban areas. Marketing analytics also involves choosing the right channel considering where there would be more traffic to gain active customers.
Overcoming the obstacles piled by the competitors and marking one’s position is also a marketing analytics tool.
- Predicting results
Comprehensive knowledge of successful campaigns helps in getting increased ROI for future projects.
Challenges of Marketing Analytics
Marketing analytics poses challenges with the massive data that has been gathered in return for positive feedback. Let us understand few challenges associated with it.
- Data quality
Apart from quantity, gaining quality data is essential to achieve accurate results for better analytics. This process of data collection can be challenging and sometimes time-consuming.
- Correlating data
Since data is gathered from several sources, it should be carefully correlated and sorted for making it easy for better analytics.
- Data quantity
Marketing analytics involves huge data from multiple sources, and it can become challenging to handle such volume.
- Lack of data scientists
Having the correct person to do marketing analytics is rare as per studies and hence could be a challenge.
- Selecting attribution models
Marketing analytics has many attributes, and selecting the correct one could be challenging for understanding a particular business facet.
Need of Software for Marketing Analytics
It is important to have proper software in place for marketing analytics to get real-time optimisations. Advanced analytical platforms help to adjust the creative or ad placement for increasing the chances of potential ROI. It helps in gaining insights into brand equity and the reaction of audiences.
Skills required for marketing managers
Human resources are the most crucial for any conduct, and hence the skills required for marketing analytics are beneficial. A broad outline of the skills required are:
- Collaborate with stakeholders
- Quality Analysis
- Work with Analytical Tools
- Understand customer and market trends
- Giving appropriate feedback
Marketing Analytics process
Marketing analytics involves four processes, such as:
- Understand what you would like to measure
- Establish a benchmark
- Assess your current capabilities
- Deploy marketing analytics tools
Tips for conducting effective Marketing Analytics:
- Ensure to identify creative needs
- Attribution should be accurate, else it is bad
- Marketing analytics is a budget priority to achieve goals