What is Marketing Analytics?
Marketing analytics refers to the technology and business intelligence tools marketers use to measure the impact of their strategies and campaigns.
The field gathers data from a broad array of marketing sources including social media, blogging, advertising, inbound campaigns, and more.
This allows organizations to understand in real time the effectiveness of each dollar spent on marketing, as well as how successfully this spending is driving engagement and sales.
The goal is to unify a company’s marketing efforts while making it easier to understand and analyze data.
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Marketing analytics provide a variety of insights for companies, ranging from results-driven metrics—ROI, clickthrough, engagement—to trends and behavioral data about customers and target markets.
Additionally, these tools allow every stakeholder in a company to access the marketing data they need, ranging from high-level views focused on marketing KPIs to more granular information relating to specific initiatives.
Many of today’s marketing analytics tools are combined with AI and machine learning technology to provide better minute-to-minute updates and more reliable insights.
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How Can I Use Marketing Analytics?
There are several ways companies integrate marketing analytics into their existing applications, ranging from targeted uses to broader management suites.
In addition, depending on the marketing channels businesses use, their needs will differ.
Most companies that use social media advertising on Facebook, Twitter, and Instagram, for instance, use data to identify the best strategy and uncover areas to improve engagement.
AB testing, which focuses on finding the best way to deliver a similar message, uses marketing analytics to track which variation of a post delivers the greatest success.
Companies with multichannel strategies can better track their efforts in a single page, expediting the analysis and insight process.
Organizations also commonly tie their customer relationship management (CRM) software to marketing analytics tools to create a more holistic picture of their consumers and improve the ways they communicate with these stakeholders:
Furthermore, marketing analytics is useful when tracking a marketing and sales funnel, as it can show which areas are the most efficient and point out bottlenecks.
Marketing analytics are commonly employed to track success metrics such as ROI, clickthrough, cost per lead, and lead-to-customer ratio.
This helps companies create more conversion-oriented strategies, as well as more accurately predict changing trends in consumer preferences: