Companies Are Increasing Marketing Spend on Marketing Analytics
According to Mckinseys most recent CMO survey, companies plan on increasing their marketing budget spend on marketing analytics from 6.7 per cent to 11.1 per cent over the next three years.
Before the internet and the explosion of digital, marketers had to rely more on their intuition
Venturebeat also found that b2c brands plan to increase their marketing analytics spend by an incredible 73%.
So, why are companies allocating larger proportions of their budgets to analytics?
Before the internet and the explosion of digital, marketers had to rely more on their intuition as to where they should allocate their marketing dollars and the type of marketing campaigns they should run.
Conducting customer surveys and primary research were the main ways they could generate data to support their marketing decisions.
Fast forward to today and marketers can use digital marketing to generate the data they need to make informed choices on their marketing spend and strategy.
Just ask yourself this question and think about it for a moment “what marketing campaigns are my company currently running?”
No doubt your answer will include some or many of the following:
· social media,
· pay per click,
· native advertising,
· digital content,
· email marketing,
· lead magnets,
· mobile marketing,
· app marketing,
· SEO or SEM
and the list goes on……
All of these forms of marketing will generate data that illustrates customer behaviour towards your company’s customer experience and marketing campaigns.
Marketing analytics enables you to understand how to collect the data that is relevant to your business objectives
What is Marketing Analytics
It is often confused with web analytics which measures how well your website is performing and how your customers interact with your digital assets.
Marketing analytics does not only focus on website performance but takes into account the holistic marketing performance of your business.
It is defined as the practice of managing marketing data, metrics and KPI’s in order to establish the performance of a company’s marketing and return on investment and in turn identify opportunities for optimisation.
Marketing analytics enables you to understand how to collect the data that is relevant to your business objectives, maintain clean data sets and be able to analyse your data to generate actionable insights that increases your sales and marketing performance.
What Marketing Anlytics Can Do For Your Business
Without marketing analytics your data is just data. What exactly do I mean by this?
Well, firstly you will be swamping yourself in large volumes of data that translates into nothing meaningful.
Secondly, you will only be able to analyse your data in silo’s without comparing it to other relevant data sets that paints a true picture of your marketing effectiveness and customer behaviour.
Without marketing analytics your data is just data
For example, if you post content on to one of your social media sites or send out an email to one of your list segments are you able to track if anyone who clicked the links visited your website, downloaded content from your site and then made a purchase?
Are you able to understand if the content you posted on social media performed better than the content you posted a day earlier? Do you know if that email you sent out to one of your segments outperformed the email you sent to a different segment a day previously?
Is email performing better than social media? If so, should you be spending more marketing budget on email marketing campaigns than social media?
By knowing these answers you can plan your emails and content more effectively to generate better future results – that’s powerful insights to have at your finger tips.
Marketing analytics should enable you to compare and contrast data sets from various sources to understand underlying trends and customer behaviours across all your platforms and campaigns.
By achieving this marketing analytics will help you to:
· Measure and track marketing performance effectively.
· Profile your customer behaviour.
· Identify your best performing customers and market segments.
· Understand which sales channels are your most effective.
· Attribute which touchpoints your customers engage with the most.
· Calculate ROI more accurately.
· Align marketing efforts to sales.
· How to optimise the sales and marketing process.
· Predict future outcomes.
· Where to allocate your marketing budget for best ROI.
· Communicate to management the effectiveness of your marketing campaigns.
Marketing analytics should enable you to compare and contrast data sets from various sources
Data Is Only Getting Bigger
We are only at the start of the data revolution. Today everyone has heard of the term big data and with the widespread publicity of GDPR businesses have become much more data aware.
But we are only going to see companies become more engrossed in data and the need to be able to utilise and scrutinise this data effectively will become increasingly important.
If you are not managing your data effectively you are putting your company at a significant competitive disadvantage. Understanding your data can save a lot of time and money in the long term and help to generate significant revenues for your business.
If you are not managing your data effectively you are putting your company at a significant competitive disadvantage.
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