Web analytics for the marketer: why is analytics needed in marketing?
In this article, we will understand what analytics in marketing is, why it is needed and how it can be useful for marketing tasks.
Internet Marketing Analysts are pretty much the most important experts in the entire department. It largely determines the direction, marketing and specific advertising campaigns the company will take.
There are several analysis tools that can help find solutions for different situations. For example, they can track the effectiveness and cost of each online promotion and identify the weakest link.
An end-to-end analytics approach in marketing allows you to understand where your company is losing revenue and fill gaps in the sales funnel. This article will help you better understand why analytics are needed and how they can be useful for marketing.
What is Marketing Analytics?
First, it is convenient to define what, where, and how analytics in marketing is used. We will move from a general analytical approach to specific solutions.
The bigger the company, the more information it needs to gather from different sources. In order to understand what is going on in a company and how processes work internally, it is crucial to analyze the data obtained.
Use a business intelligence system for this. Their specialty is that they are designed to process data and convert it into a common form to create comprehensive analytical reports and then use them properly.
In this way, business intelligence tools provide operational access to data that reflects the current state of the organization. For example, sales by region and industry, sales by individual product line, etc. These systems also have the ability to visualize data in the form of tables, various charts, etc.
For marketing, a business intelligence system is useful because it allows the processing and analysis of large amounts of information of the following types:
• Demand structure for the range of products offered, which are sold in larger volumes.
• Current consumer buying behavior in response to changing public needs, changing product ranges and developing products or services in line with current trends.
• Comparison of conversion rates and sales intensity across channels and outlets, and changes in results when budget allocations and changes in marketing efforts are applied.
Business intelligence is characterized by descriptive analytics. The program reviews the situation at the time and can identify areas where improvements can be made in marketing and sales activities and processes in the current environment to improve business performance and return on investment.
In other words, it reveals bottlenecks within the organization, but cannot predict the future of the organization under changing market conditions.
Marketing analytics is used to predict possible developments. Here, it is the responsibility of a marketing analyst or other marketing professional to proactively analyze the market situation and what is going on in the company's external environment. Here's what they control:
Consumer Sentiment and Advertising Trends
In this case, we examine all the novelties of the market, how the target audience perceives them, what they say, which features consumers emphasize, what topics and messages they prefer, why, which communication platforms are the most popular and why and many more
Comparative analysis of the company's products and competitors' products
For this purpose, examine the attributes and costs of other market offers for quality, price, market share, advertising promotions, positioning, consumer perception, etc.
sales market analysis
In this case, all attention is on the potential of consumer demand, changes over time, the level of competition, actions of other companies, the possibility of new players, and so on.
Effectiveness analysis of marketing activities
Planning an advertising program involves analyzing the expected results of its execution, the influx of new clients, the return on existing clients, and the return on investment. To do this, use the conversion statistics for each level of the sales funnel from the previous year as a comparison.
Web analytics is a special case of evaluating the performance of marketing campaigns, but it applies to online advertising. Its applications have a wide range of tasks, so we recommend researching it.
It should never be forgotten that digital marketing campaigns should always be accompanied by a process of evaluation, misidentification and recalibration. This allows necessary adjustments to be made to achieve the desired result.
If you don't evaluate the campaign, you could mistake the whole campaign for a flawless execution and the public just "not responding". This is a serious mistake because a well-designed and executed campaign will always get a response from the target audience.
Not to mention that you can avoid wasting valuable resources on ineffective activities that have no business impact. So before moving on to the next campaign you're considering, it's a good idea to pause to assess the current situation and recalibrate the campaign until you find the right formula to achieve the desired effect.