Using marketing analytics gives you insights into your marketing activities to make better predictions. Learn how to use marketing analytics to make your campaigns more effective.
Marketing is a mix of art and science. The scientific nature of marketing analytics makes it an important complement to the more creative aspects like content creation.
Simply put, marketing analytics helps you find out which of your creative efforts makes the most business sense.
Here, we’ll provide an overview of marketing analytics, its benefits, and some practical steps you can use to improve your marketing efforts.
Marketing analytics is a data-driven discipline that focuses on quantifying the effectiveness of marketing campaigns and informing marketing-related business decisions. It helps you nail down the ROI (return on investment) of a given campaign, measure engagement, and make better predictions.
While it’s possible to apply analytics to traditional offline marketing, digital marketing makes it significantly easier to track marketing data and use analytics tools to curate it.
For example, email marketing KPIs (key performance indicators), such as bounce rate and open rate, can be easily tracked and analyzed using email marketing software. In comparison, measuring the effectiveness of a billboard isn’t as easy or precise.
At a high level, there are two main benefits of marketing analytics: quantifying how well you’re doing today and learning how you can improve. Drilling down a bit further, specific benefits of marketing analytics include:
Today many marketing analytics tools are built into marketing software products like CRM software. As a user, it’s important to remember the old saying “garbage in, garbage out” applies to analytics software.
What this means is one of the most important things you can do is ensure “good” data goes in. This means keeping customer databases up to date, tracking costs, and integrating data from all your marketing platforms. It also means focusing on data that is relevant to your sales and marketing goals.
To help you get started, here are three ways you can use marketing analytics to improve your marketing campaigns.
Marketing 101 shows us there are plenty of effective marketing channels you can use.
Additionally, you’ll find reams of statistics online touting the impressive ROI of different channels. That provides you with a starting point, but how do you know what works best for your business? This is where marketing analytics comes in.
By tracking the ROI of a given campaign, you can quantify what channels work best for you. The metrics to track here are simple: costs of the campaign and sales it produced.
Of course, how to actually track ROI depends on the type of campaign and tools you use. For example, you may be able to use a spreadsheet to track the costs and returns on coupons sent via direct mail as part of a restaurant marketing campaign.
For anything beyond small-scale campaigns — for example, sending multiple campaigns to a large email list — the spreadsheet may not be scalable enough. Which leads to our tips for tracking ROI…
The ability to make better predictions is one of the key benefits of marketing analytics.
In fact, Salesforce found that predictive intelligence led to an average conversion rate increase of 22.66%. A wide variety of data including purchase history, region, company size, and behavioral patterns help enable predictive analytics.
By using algorithms to compare the activity of current customers and prospects to historical data, analytics tools can help you “nudge” them into making a purchase or taking a specific action.
For example, a follow-up email with a coupon after a customer abandoned their cart on an e-commerce site may lead to a sale.
Predictive analytics allows you to send highly targeted content based on real-world data. Some of the most common ways to use predictive analytics to boost sales include:
A/B tests are a great way to measure the effectiveness of different campaigns using the same marketing channel. You can use A/B tests to control for specific variables like wording, content, images, etc. and better understand what elicits the desired response from your customers.
To get started with A/B testing, you need to do three things:
For example, you can use A/B testing to determine which email campaign leads to the highest open rate. Email marketing software like Zoho Campaigns makes running and tracking these tests simple.
With analytics software, running A/B tests is simple enough. However, it can be easy to draw false conclusions if you set your tests up poorly. Here are some tips to help you avoid common mistakes:
Marketing analytics enables marketers to make better decisions and quantify historical performance.
However, it’s important for you to make sure you use analytics tools wisely. This means capturing “good” data and avoiding “garbage in, garbage out” as well as understanding how to contextualize the information the tools provide.
If you can do that effectively, analytics tools can provide a significant boost to your marketing efforts.
This article was originally published at Fool.com, by author David Zomaya. Original article >>
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