What is marketing analytics?
Marketing analytics is the practice of measuring the performance of marketing activities or campaigns to determine the return on investment and maximize investments in marketing.
How marketing analytics works
Gather the data
Marketing analytics gathers the data that is used to determine if a marketing investment has been successful. The data set includes products sold, affect on market share, social impressions or shares, and other metrics.
Analyze the data
Once data is gathered, marketing and business analysts do a deep dive to determine what it all means. Analysts will juxtapose the returns that the data show and make recommendations to continue or to tweak the marketing strategy to increase ROI.
Online data advantages
The evolution of the Internet and increased online marketing activities and commerce offers marketers more precise insights into their marketing strategies. Online data can be efficiently collected and database technology makes it easier for analysts to make assessments about ROI.
Why marketing analytics matters
Know what works
Companies need to know which marketing activities work, and which don't. Analytics gives them the data to make that determination. Organizations that are shortsighted about analyzing their marketing budgets are likely getting lousy returns on marketing investments.
Ongoing, thorough analysis of marketing performance builds the long-term foundation for companies to be more assured and effective with their marketing activities and campaigns. When integrated into business and marketing operations, analytics can be a major key to success.
Growing companies do marketing analytics well. It provides the key data sets that tell an organization what's working and what's not. It offers insights into products and strategies. Growing companies are willing to learn from the data they are gathering and tweak or develop new strategies that allow them to expand.