Marketing Analytics: What Is It and How Can You Use It?

The best way to improve the quality of your marketing is by analyzing your incoming marketing data. That’s the idea behind marketing analytics. Want to learn more about how to use analytics in your marketing? Just keep reading!

Marketing analytics is vital to your business

Marketing is a process. New trends and customer preferences emerge every day, and it can be challenging to keep up with it all. Often, it can feel like a guessing game. But the good news is, it doesn’t have to. If you use analytics in your marketing, you won’t ever have to guess.

Marketing analytics is a fantastic tool for staying in touch with your audience’s needs and wants so you can keep your sales and revenue high. That’s the reason 6.5% of marketing budgets go towards analytics.

But what is marketing analytics, exactly? Furthermore, how can you make it work for your business? Keep reading to find out.

Then partner with WebFX’s team of over 450 marketing experts for our marketing analytics services. Just call 888-601-5359 or contact us online today to get started!

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What is marketing analytics?

Marketing analytics is the process of gathering and assessing data from your marketing campaigns. The goal is to use the information you gather to see how your campaigns are performing and determine how you can reoptimize them in the future.

Benefits of marketing analysis

There are several notable benefits to marketing data analytics. Here are three of the biggest ways you can harness your analytics to benefit your business!

1. Quantify your observations

The first way you can use your business analytics is to back up your marketing claims. If you answer to someone higher up in your company, you’ll sometimes have to justify your marketing observations to them, and it’s best if those observations are backed by hard data.

For instance, let’s say you find that your revenue skyrocketed when you used a particular tool. However, it’s not currently in your budget to keep using that tool, so you need your superior to approve a budget increase so you can afford it.

To justify the budget increase, you’ll need to show your superior hard evidence of how the tool boosted your revenue. For that reason, it’s helpful to have some clear analytics data to prove your claim. 

2. Calculate your ROI

Another benefit of marketing analysis is that you can use it to determine your return on investment (ROI). You don’t want to be left in the dark about how your marketing affects your revenue. What if you’re actually losing money on a particular campaign? You’d want to be aware of that!

Analytics can show you how much you’re earning from your marketing efforts, as well as which specific campaigns are bringing in the most money. That enables you to make sure you continue to increase your revenue rather than inadvertently lowering it.

3. Reoptimize your marketing

Arguably the greatest use for marketing analytics is reoptimization. Analytics can give you some incredible insights into your campaign performance. It can show you which campaigns are performing well and which tactics seem to drive the most conversions.

You can use those insights to improve your marketing going forward. Let’s say you find that a particular ad format drives a high number of conversions, while your other formats don’t perform as well.

Using that info, you can try to replicate the successful format while trying out ways of improving the less successful ones. That enables you to keep bettering your marketing over time, meaning your revenue will keep going up.

A step-by-step guide to the marketing data analytics process

Now that we’ve covered what marketing analytics is and how it can benefit your business, you’re probably wondering what the analytics process looks like. Here are four steps you can follow to put your business analytics into action!

1. Choose your metrics

The first step in the analytics process is choosing the marketing metrics you want to check. After all, your data won’t just magically appear — you’ll have to track specific key performance indicators (KPIs) that show you how your marketing is performing.

There are a few metrics you’ll want to consistently look at, like conversion rate and ROI. But for the most part, you’ll want to track different KPIs depending on the type of marketing you’re looking at.

For example, if you’re analyzing your email marketing, open rate is an important metric to look at. And if you’re tracking web traffic, you’ll want to keep up with things like bounce rate and average time on site.

2. Gather your data

Once you know which metrics you want to track, it’s time to actually begin tracking them. You can do this manually, but it’s best to use digital tools to help you. For instance, you can use Google Analytics to help you track metrics related to traffic on your website.

You won’t be able to start analyzing your data the second it comes in. For your analytics to be effective, you’ll need to wait until you have enough data to see patterns in. Depending on the time frame you want to look at, that could mean you need to wait anywhere from a few weeks to several months.

Eventually, though, you’ll have gathered enough data to gain insights from.

3. Organize the data

Now that you have all the data, it’s almost time to perform your analysis — but still not quite. First, you have to organize that data. After you first gather it, your data isn’t very well-organized. You have a whole database of numbers, but those numbers don’t mean anything until they’re arranged into patterns.

That’s what the organization step is for. As with the previous step, you can do this manually, but it’s not advisable. It’s best to get a data management platform (DMP) or business intelligence (BI) software to help you arrange the information.

4. Assess your information

With your data gathered and organized, you can finally assess it for valuable business insights. You’ll want to look for trends or patterns that reflect the way your marketing has influenced leads and conversions. To that end, it can be helpful to create charts and graphs.

Whatever you learn from your data, you can then turn around and apply to your marketing. If you find that a particular tactic is driving powerful results, consider using that tactic across more of your campaigns. If you find that your sales are low in a given season, consider upping your marketing game during that season.

Tips for business analytics

It’s one thing to analyze your marketing data, but it’s another thing to do it well. If you want some insights into how to drive better results for your marketing data analytics, just keep reading. Here are some marketing analysis tips to try!

1. Ensure you’re using relevant data

One of the first things to get right with your analytics is to make sure you’re looking for relevant data. “Relevant” in this case means a few different things.

First and foremost, it means your data should actually relate to the marketing strategy you’re trying to track. Don’t look at your paid advertising metrics if you’re trying to optimize your organic rankings.

Beyond that, though, you need to ensure that your numbers aren’t outdated. If the data you’re looking at is from two years ago, it’s probably not going to be much help to you now (unless you’re trying to chart a trend across multiple years).

Go out of your way to analyze data that’s as recent and relevant as possible. Only then will you get the most accurate and helpful insights.

2. Segment your data

Another way to improve your marketing analytics is to segment your data. Segmentation doesn’t make sense for every type of analytics, of course. But if you’re tracking data about your potential customers, it can be a useful tool.

It’s hard to learn too much about your audience if all your potential customers are bundled together haphazardly. But when you segment them into different groups, it can help you pick out new patterns you might have otherwise missed.

You can segment people by different traits. Common demographics like age and gender are one way to do it. You can also segment by geographical location, or even by user behaviors on your website.

3. Note what works — and what doesn’t

Analytics is largely about finding what works best in your marketing and then implementing those tactics going forward. But many businesses get so caught up in finding what works that they forget to pay attention to what doesn’t work.

When you conduct your marketing analysis, be sure to keep an eye out for any campaigns, tactics, or strategies that aren’t benefiting your company. Sometimes it’s easy to assume you should be doing a particular tactic, but if it isn’t working for you, there’s no point in wasting resources on it.

For example, maybe you’re testing a particular social media ad campaign, but it’s costing more than it’s earning. You can try reoptimizing it to drive better results, but if nothing works, it might be best to simply stop doing it. Otherwise, you’re needlessly dragging down your ROI.

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WebFX can enhance your marketing data analytics

If you want help driving results for your marketing analytics, look no further than WebFX. We’ve been helping businesses optimize their marketing since 1996, and in that time, we’ve earned over 863 glowing testimonials from our clients.

When you partner with us for our marketing analytics services, you’ll get help gathering and analyzing your marketing data to see what you can do to improve your marketing going forward. We’ll ensure that you don’t miss out on any important information that could help you boost your revenue.

To get started with us, just call 888-601-5359 or contact us online today!