For many people, our intuition can come in handy when we are making a decision. How you feel about one choice over another might be the main way you come to conclusions in your personal life, and perhaps even when running your business. However, while intuition might have its place in business, it’s not always the most effective strategy to use. After all, your gut feeling might be useful, but it’s not always completely reliable when it comes to telling you what you need to do in terms of the decisions you face based on the actions of your customers and clients.
Any big decisions that are likely to have a large impact on your company in the future should always be data-driven. Data analysis is a process that can be used to help you confirm that your gut feeling has it right, or if you’re going off-track and need to consider another direction when it comes to deciding on the best next step to take with a new strategy, service, or product. Data analytics will provide you with a means to measure and analyze various aspects of your company including marketing performance, which in turn allows you to make strategic decisions that boost your return on investment and help your business become more efficient in its journey towards success.
Why Do Businesses Need Data Analytics for Marketing?
Before businesses started collecting vast amounts of data, marketing often involved a lot of guesswork. Marketers and business owners had some data to work with, but this was often gathered after the fact. When it came to coming up with marketing campaigns and strategies, marketers and business owners often had to simply cast the net and hope for the best. And one of the biggest problems with this was that even after these strategies had been successful in gaining customers, there was often no way of telling which ones were the most successful without asking the customer directly how they heard about the business.
These days, however, things have changed a lot. Digital marketing is the top way that companies of all sizes and in every industry advertises their brand, products, and services. No matter what your business offers, the majority of customers are probably going to find you online, with the internet the first point of call for many people who are looking for information on new services or products that they may be interested in. Using marketing analytics in your business will help you make sure that you have the tools that you need to gather relevant information for finding the best leads and converting leads to customers. Find out more with a masters degree business analytics from Saint Bonaventure University.
Companies of all sizes and in every industry gather huge amounts of data regularly, both intentionally and unintentionally. Your business likely has more data than you realize from channels such as your CRM, social media profiles, website, past orders, customer communications, and more tools from wicked reports. Failing to take advantage of the vast amount of data that your company is now able to collect with these channels can lead to your business getting left behind.
How Data Analytics is Used in Marketing
Business analytics refers to a process that is used for measuring and learning more about any aspect of your company. Using this type of data analytics in marketing can have a lot of end goals. For example, you could use it to learn more about your website visitors and what they are doing while on your site or analyze huge datasets to figure out which marketing campaigns have had the best effect for your company and determine how you are going to go forward with the next one.
Marketing analytics often goes hand in hand with website analytics, where you can find out more about visitors to your website. Data analytics allows you to find out who is visiting your website for the first time, who’s returning, what they are looking at and clicking on, how they found your site online, where they found it, and if there are any areas of your website that tend to attract them for longer compared to others. Along with this, you can use website data analytics to figure out if there are any areas of your website that could be improved – for example, a certain page that website visitors tend to bounce off quickly. This will help you get a better understanding of how your website is performing and what you are doing well or not so well when it comes to using your website to increase conversions, sign-ups, customer contacts, purchases, and more.
Paid advertising is another strategy that business can also use marketing data analytics to analyse and improve. Since paid advertising often involves investing a large amount of money into marketing your business online, it’s worth analyzing the data that you are collecting. This enables you to get a clearer idea of your target audience, what they are searching for, where they are coming from, and their behavioral habits. Then, this information can be used to make more strategic decisions about who your business is targeting, why they are targeting this audience, and more.
How Using Data Analytics in Marketing Benefits Businesses
Using data analytics for marketing a business can have several different benefits. Some of the main ways that you can get an advantage and improve your business success using marketing analytics include:
Make More Sense of Results
Data analytics is often used by companies in marketing to help marketers and business owners get a better understanding of what’s going on with their current marketing campaigns. If you have an active marketing campaign in progress, using data analytics allows you to track it and makes it easier for you to clearly see your ongoing results. As a result, this allows you to make faster, more effective decisions that will help your business stay on track. As a result, marketing campaigns are likely to be more successful as using data analytics allows you to stay up to date with it and make necessary changes in real-time.
Make More Accurate Predictions
While it’s impossible to predict exactly what might happen in the future, data analytics does allow you to get as close as possible. Predictive analysis is a strategy that is often used in business by business owners and marketers to help them get a better understanding of consumer behavior and determine how they are likely to respond to future marketing strategies and campaigns based on past results. An example of this would include using web analytics software to determine why visitors might leave your website based on the actions of previous customers. You can then take this information and use it to make necessary improvements to the website at the point where customers tend to leave more often, which can change this habit and encourage your visitors to stay on your website for longer.
Figure Out the ‘Why’
Using data analytics in marketing can provide marketers and business owners with a clearer insight into what’s happened in the past and the reasons behind why things worked out that way. This can be a useful strategy if you have been in charge of a marketing campaign that did not go as expected; whether the results were better or worse than you anticipated, data analysis will help you figure out why that happened. Marketers will often use this information from past campaigns when putting together new campaigns for the future, as it gives them an insight into which strategies are likely to perform well and which are best avoided due to poor past performance. To achieve this, data analytics in marketing uses a combination of marketing automation platforms, descriptive analysis, and customer relationship management software to provide business owners and marketers with clearer information on what has happened in the past and what has led to those results.
Have a Bigger Impact
Using data analytics for marketing gives marketers and company owners the opportunity to combine data with their marketing goals to make decisions that have a bigger impact. When you translate the data that is collected on your customers and target audience using data analytics, this allows you to get a better idea of which members of the target audience are likely to be the most profitable, and how to target them to get the best results. When used alongside solid market research strategies, data analytics can go further than simply learning more about sales metrics and lead generation numbers, allowing you to be more impactful with your marketing campaigns by learning as much as you can about your target audience and building better relationships with them.
How Data Can Be Used in Marketing – Steps to Success
A marketing strategy that is driven by data requires business owners and marketers to be in a data-driven mindset. This often means collecting as much data as possible on your target audience, putting it to use wherever possible in order to learn more about your customers and get better results. To start using data analysis more successfully in your marketing strategies, follow these steps:
Define Goals and Objectives
The first step is to determine exactly what you plan to achieve when using data analysis for your marketing strategy. Consider the audience that you are targeting and whether you want more leads, more conversions, or simply to improve brand awareness, for example. Are you hoping to revive demand for an older product, or market a new product or service? It’s important to have a solid understanding of what you want to do with your data-driven marketing strategy since these goals are essential in driving your decisions in terms of which data analysis tools you use, how you will implement them, and what to look for in the process of data analysis.
Choose the Right Tools
These days, company owners and marketers have access to hundreds of data analysis tools that are available for companies of all sizes and in all industries. The tools that you can use have a huge impact on the data that you can collect on your target audience and customers, and how it is interpreted. A customer relationship management (CRM) platform is one of the most useful tools for businesses as it allows you to track the movements of your customers all the way from the moment that they first place an order or contact your business right through to completion. It allows you to get a clearer insight into consumer behavior and gather data that can be put to use in future marketing campaigns for both acquiring new customers and retaining existing ones.
Prioritize the Customer Experience
The experience of your target market and customers should always be the top priority when coming up with a data-driven marketing strategy for your business. Collecting, tracking, and analyzing various types of data will make it easier for you to determine if your customers are satisfied with the experience that you currently offer, and what you can do to improve things if not. You can use the data that you collect in various different ways to ensure that the customer experience is the top priority, and as a result of doing this, companies often find that their marketing strategies are often more effective. The customer or client experience can be one of the best marketing strategies that you have access to, since customers are always more likely to return after a good experience with a company, along with being more likely to engage in word-of-mouth marketing whether that involves leaving positive reviews, telling their social circle about your company, or getting involved in your refer-a-friend schemes. By using data, you can figure out what you need to do to improve the experience and reap the benefits.
These days, data has become the most valuable commodity in the world and more companies than ever are collecting huge amounts of it. When it comes to marketing your company and building your customer base, the data that you collect on your target audience, current customers, and even your competitors can be analyzed and put to use for better results.