A colossal amount of data is being generated every day. It has been estimated that as much as 90% of the data in the world today has been created in the last two years alone, which puts it in perspective. Data can play a vital role in measuring the performance of the marketing programs and can guide the leadership to make sound decisions. However, it needs to be analyzed carefully by experts to divulge the right insights.
Furthermore, the marketing analytics provide a combined analysis of overall marketing endeavors across all channels for a given period. By using techno-scientific metrics, the practice can be deployed to identify actionable solutions for various business concerns and has numerous other advantages.
However, before moving ahead with the utility and benefits of Marketing Analytics, it’s necessary to distinguish the difference between analytics and metrics, as they are commonly confused with one another.
Distinguishing between Analytics and Metrics
Though both make equal use of data, metrics essentially are used as a standard of measurement of various marketing actions. There is a defined marketing metric for everything that can be measured. Operational parameters, Brand Awareness Metrics, Online conversions metric, etc., are some of the well-known marketing and branding metrics used by marketers.
On the other hand, Analytics is about using math and statistics to identify the patterns in data. By creating models, analytics can be used to monitor, predict and understand the psychological aspects such as consumer behavior to optimize marketing decisions.
Intrinsically, Analytics are a combination of technologies and processes that use the collated data to answer some of the tricky questions that marketers seek. Some of these are about:
- Identifying the social media platforms that deliver best response rate
- Comparing the competitors’ marketing activities with in-house operations to figure out both flaws and advantages
- Finding the best possible allocation method of marketing resources
To put it in a nutshell, while metrics reveal the performance of the marketing programs, Analytics are used to quantify that performance.
Conceptualization and execution
Balancing the mix of analytics is the ideal way to derive the maximum benefits, for which, the techniques that report the past as well as analyze the present should suitably combine with methods that predict the future.
For instance, marketing analytics can be used to compare a direct mail campaign of the past with an email campaign, as well as derive the value of leads that were generated by a social media campaign and identified the right ways to improve.
The procedure can also gauge the current performance of the marketing programs such as identifying the preferred channels of most valuable customers or the topics being discussed by them.
Analytics can be further used to make data-driven predictions. Formulating the strategy to convert currently engaged audiences into loyalist or identifying the necessary additions to the existing product portfolio are some of the forecasts that could influence the future.
Advantages of Marketing Analytics
Brands always look to achieve a secure position which can enable them to control the perception of their customers towards them. Specialized analytics can play a significant role in driving customer engagement strategies that can help business have a better influence on consumer perception.
Through assimilation of relevant marketing information, Analytics can conceptualize various marketing factors, decisions, and programs. The in-depth knowledge on critical marketing aspects offered by the analytics can also help businesses in mastering the emerging trends. By achieving proficiency to make accurate decisions, the management can invest their resources in developing only those business offerings that cater to the specific needs of the consumers.
Comprehensive analysis of data can also help in classifying and reorganizing the target market into decipherable groups or categories. Moreover, it can help in optimization of various marking actives such as research and exploration as well as enhance the quality and reliability of gathered data.
The holistic application of marketing analytics can enable the enterprises to close the loop between marketing efforts and investments. Result-driven analytics can also improve the critical process of lead nurturing and management, which subsequently transform into higher revenue and profitability.
- Marketing Analytics are necessary to obtain a combined analysis of overall marketing endeavors across all channels for a given period.
- While metrics reveal the performance of the marketing programs, Analytics are used to quantify that performance.
- Result-driven analytics can close the loop marketing efforts and investments which can maximize revenue and profitability.