Defining Marketing Analytics

How can companies take the guesswork out of marketing? Marketing analytics solves this problem by measuring, managing, and analyzing data to improve marketing effectiveness and ROI. It utilizes statistical algorithms, machine learning, and information from various marketing channels such as social media, advertising, and email campaigns. There are three types of marketing analytics models. The descriptive model uses historical data to evaluate the success of prior marketing campaigns to plan for future strategies. Similarly, the predictive model gathers insights from past campaigns, but it uses the information to predict customer behavior and create targeted campaigns. Finally, the prescriptive model interprets data from all available touchpoints and weights the impact of each interaction so that companies can create more targeted and effective campaigns.

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‍Why You Should Care

Ultimately, the goal of marketing analytics is to help marketers make data-driven decisions and continuously improve their strategies. Studies have shown that data-driven companies are 23 times more likely to succeed in customer acquisition, and 6 times as likely to retain their existing customers. These figures help explain why those companies are 19 times more likely to be profitable than others.

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Benefits of Marketing Analytics

• Get more value from your marketing budget by using marketing analytics to identify which channels are most effective and allocating resources accordingly.
• Measure key performance indicators (KPIs) such as website traffic, conversion rate, lead generation, customer acquisition cost, bounce rate, and customer lifetime value.
• Companies can analyze customer data and behavior to personalize the customer journey. Research has shown that personalized experiences can increase customer engagement, loyalty, and sales.
• Utilize attribution modeling to identify which touchpoints had the largest impact on a customer’s purchase decision.
• Improve cohort segmentation by tracking the behavioral trends and patterns in specific cohorts over time.

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Marketing Analytics Tips

Start on the right foot by identifying the goals of your marketing strategies. Then, select the metrics needed to determine how successful the strategies were. It’s best to integrate data from a variety of sources such as customer feedback, email marketing statistics, and social media metrics. Lastly, review your marketing data often and use it to optimize your marketing strategies. If you’re looking for a new marketing analytics tool, utilize Surf’s NLP data dashboard. Its AI-integration visualizes data regarding ecommerce, social, geolocation, and more. Book a meeting today to get started!