Data has been the buzzword for ages now. It has rolled into many areas as the base for analyzing performance and deriving meaningful conclusions. But how do you do it? How do you start benefitting from the Data at hand and boost your Business in the Market? Well, that is where the term ‘Data Analytics for Marketers’ comes in.
Data Analytics gives Marketers an opportunity to learn about their customers. As new methods to apply Data Analytics for Marketers are emerging every day, it is important for you to understand how you can make use of these methods to your advantage and grow your business.
Don’t know how all this works? Don’t be afraid! This article will provide you a 360-degree view of Data Analytics for Marketers and will enlighten you on why it is so important. It also provides the challenges you might face while working with these concepts.
Table of Contents
- What is Data Analytics?
- What is Data Analytics for Marketers?
- What are the Primary Goals of Data Analytics for Marketers?
- What is the Importance of Data Analytics for Marketers?
- What are the Key Metrics of Data Analytics for Marketers?
- What are the Advantages of Data Analytics for Marketers?
- What are the Challenges of Data Analytics for Marketers?
What is Data Analytics?
Data Analytics refers to the methods used to enhance the efficiency and productivity levels of an organization. The purpose of Data Analytics is to bring monetary gains to the business through careful Analysis. Do you wish to know how it begins? Yes? Then read further!
Data Analytics involves the Extraction of Data from multiple sources for Cleaning, Categorizing, and Interpretation purposes. For instance, if you know how to read the Raw Data and perform Data Analysis to acquire Business Information, certainly you’re good to start a career as a Data Analyst. Yes, Data Analyst, that’s what we call a person who performs Data Analysis.
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What is Data Analytics for Marketers?
Marketers all around the world regularly Analyze their Data to evaluate the amount of money they have invested in marketing their products/services. They spend hours on Business Intelligence Tools like Tableau, Power BI, Microsoft Excel, and Google Analytics to know the outcome of their business decisions and accordingly take the necessary actions.
What are the Primary Goals of Data Analytics for Marketers?
Data Analytics for Marketers aims at increasing the effectiveness and optimizing the Return on Investment (ROI) of the company by accomplishing 4 main goals:
- Correct Measurement of Marketing Initiatives
- Finding New Opportunities in Market
- Understanding Competition
- Understanding Customers
1) Correct Measurement of Marketing Initiatives
The effectiveness of your Marketing Initiatives is measured on the basis of the revenue generated while decreasing the Cost of Customer Acquisition. To achieve this goal, you need to define the following parameters:
- The Metrics that will define the success of your Initiative.
- Marketing Channels for your Initiatives such as Content Marketing, Email Marketing, Social Media, etc.
- Key Performance Indicators for your Initiatives such as Customer Acquisition Cost, Customer Lifetime Value, etc.
2) Finding New Opportunities in the Market
To grow your business, you need to continuously look for opportunities. This is unarguably the most important goal that will determine your position in the competition. There are a couple of strategies that you can explore for your business:
- Speak to the Leads you have lost.
- Talk to your current customers.
- Keep track of your Competitors.
- Keep track of Industrial Trends and Insights.
3) Understanding Competition
It is important to know who your competitors are, and what they are offering to their customers. This could help you make your Products, Services, and Marketing Campaigns stand out.
4) Understanding Customers
Understanding your customers and their needs is the key to providing them with the best services they can get. Use Data Analysis to better examine and understand their behavior, and lifestyle.
What is the Importance of Data Analytics for Marketers?
According to Forbes, Data Analysis for Marketers holds significant importance in Marketing Strategies as businesses that underestimate Data-Driven Marketing Decisions are missing out on 15-20% of increment in the Rate of Investment (ROI). Following are the 4 reasons that underline why Data Analytics for Marketers is important:
- To Learn the Past Performance
- To Know the Real-Time Situation
- To Predict Future Outcomes
- To Streamline Budgets
1) To Learn the Past Performance
By understanding Data Analytics for Marketers, businesses can get clean insights into past strategies. Furthermore, they can study why their results are shaped in a particular way and what went wrong. In short, Data Analytics for Marketers can prevent similar mistakes in the future.
2) To Know the Real-Time Situation
Besides past performance, Data Analytics for Marketers helps a business evaluate its Real-Time Marketing Initiatives. Real-time Marketing Initiatives improve and optimize the Real-Time Status of ongoing Initiatives.
3) To Predict Future Outcomes
Leveraging Data Analytics models like Regression and Collaborative Filtering can forecast changes in your customer’s behavior. Also, with the emergence of Machine Learning and other Statistical Algorithms, you can predict when your Lead is likely to leave the website and which Lead will potentially convert into a customer.
4) To Streamline Budgets
Combining Data Analytics for Marketers and Market Research can prove to be instrumental in Managing Budgets. Businesses can harness the correct Data and channel their efforts to Manage Budgets in the right time and direction.
What are the Key Metrics of Data Analytics for Marketers?
In today’s complex business world, Marketing Departments work across various channels within the organization. From Social Media to Email Marketing to Lead Generation. With so many channels being used, it becomes crucial to track your performance with the right metrics. Metrics of Data Analytics for Marketers are measurable values that tell how effective our Marketing Initiatives are. Following are the 5 Key Metrics of Data Analytics for Marketers that every Marketer should consider:
- Marketing Qualified Leads
- Brand Awareness
- Email Marketing Engagement
- Return on Marketing Investment
- Lead Conversion Rate
1) Marketing Qualified Leads
A Marketing Qualified Lead is a universal metric used by all Marketers to assess the quality of Leads that can potentially get converted into customers. In an organization, this Metric works in alignment with the Sales and Marketing departments. Most teams usually have a set target that includes various Marketing Qualified Metrics (MQLs) and Acceptance Rates.
2) Brand Awareness
Brand Awareness Metric is used to Analyze your Brand’s Performance on Social Media Platforms such as Facebook, Twitter, etc. Tracking this metric over time will help in understanding the behavior of Leads, especially when combined with the Number of Posts per month.
3) Email Marketing Engagement
The Email Marketing Engagement score metric measures how effective your Online Initiatives are by using metrics like Click-Through Rates and Open Rates. Both of these rates represent a different type of Online Customer Engagement. The Open Rates are in liaison to the credibility of the sender and the subject line performance. On the other hand, Click-Through Rates are linked to content resonation and relevance.
4) Return on Marketing Investment
Return on Marketing Investment metric measures the revenue generated by an Initiative to the cost spent on running it. Despite the quintessential importance of this metric, it is difficult to measure and monitor performance.
5) Lead Conversion Rate
Digital Marketers use a pair of free and paid Data Analytical tools to get a clearer picture of their performance. Some of the popular ones are:
- Google Analytics: Google Analytics is a free Website Analytics tool provided by Google to help Marketers monitor the traffic on their websites. It helps you know where the majority of traffic is coming from and the amount of time they spend on your online address. Additionally, Google Analytics is integrated with two other tools: Google Adwords and Google Data Studio to perform a Deeper Analysis of your Marketing Data.
- MixPanel: MixPanel is another great Analytical Tool that tracks the events taking place on your Website, or Mobile Application. It is essentially used to see what the users are doing on your Website. You can organize events at MixPanel and see the trends on your dashboard with your choice of metrics.
- Cyfe: Cyfe is a one-stop solution for all Marketing Analyses. It provides an all-in-one dashboard with various Marketing Tools in one place. You can use it to track all of your Social Media Platforms, Pay-Per-Click Marketing Channels, and other sales platforms.
- Optimizely: Optimizely is a tool used for carrying out A/B tests on your Web Pages. It enables you to change the design and the layout of the webpage without changing the codes. It is a great tool for Marketers focusing on improving their ROI.
- SEMrush: If you want to know what your competitors are doing, then SEMrush is maybe what you’re looking for. SEMrush allows you to track the performance of your competitors without any hassles. Furthermore, it helps you to outrank your rivals by searching the Competitive Keywords in the Market.
What are the Advantages of Data Analytics for Marketers?
There are a plethora of benefits that Data Analytics for Marketers has on your Business Performance. Some of them include:
- Understand Your Audience: Data Analytics for Marketers allows you to understand your customers along the whole customer journey. By Data Analytics for Marketers, you can see where customers are dropping out of the Conversion Funnel.
- Identify Trends: Data Analytics for Marketers helps you identify and capitalize on worthy trends by presenting a bigger picture of Consumer Market Trends.
- Measure Performance: Data Analytics for Marketers measures your Marketing Performance and Key Performance Areas. Key Performace Indicators (KPIs) are linked to your company’s goals and provide a positive performance.
What are the Challenges of Data Analytics for Marketers?
There are certain challenges that you might face with Data Analytics for Marketers:
- Lack of Understanding: Many Marketers may have the relevant Data to analyze your Marketing performance, but they may lack the necessary Analytical Skills. And if people are clueless about contextual reading, then there’s little to expect from the Marketing Strategies.
- The Explosion of Data: Data is huge for Data Analysis. Many people might think the more the better but in actuality, it’s the other way round.
- Identification of The Best Tool: Of course, there are hundreds of Data Analytics Tools for Marketers out there to choose from. Therefore, it is very difficult to find the best tool that suits your Marketing efforts.
This article provided you with a detailed overview of Data Analytics for Marketers and the best practices you should follow before investing in the Market. It has provided you with the information that would require before jumping into the sea of Data Analysis for Marketers. This article has also addressed the challenges you might face while working with these concepts.
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Share your experience of understanding Data Analytics for Marketers in the comments section below!