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Marketing analytics and why is it important?

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A topic of growing importance, Marketing analytics, plays a crucial role in identifying business opportunities and improving operational excellence. At a time, when the value and power of data is tremendous, marketing analytics is important for marketers, more than ever before, to overcome their challenges and benefit from big data. As a matter of fact, the global marketing analytics market is expected to reach $5.52 billion by 2025 (Verified Market Research).

What is marketing analytics?

Marketing analytics is the practice of measuring, managing, and analysing the marketing efforts from various data sources like social media, emails, events, websites, blogs, etc. Marketing analytics is crucial as it provides a holistic view of the performance of the marketing activities of an organization.

Why is it important?

According to Forbes, companies that don’t make data-driven decisions in marketing and sales are losing a 15-20% increase in marketing ROI. Data and marketing analytics can empower businesses to make better decisions. Following are the reasons that underline why marketing analytics is important in the big data world:

  • To learn what has happened: Using marketing analytics, businesses can glean insights on the performance of previous strategies and study them to understand why results have shaped in a particular way. By analysing previous performances, marketing teams can avoid making similar mistakes in the future.

  • To understand what is happening: Besides offering insights on past activities, marketing analytics can also provide information on the performance of current marketing efforts. Real-time status on marketing efforts can help marketers improve and optimize current campaigns in real time.

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  • To know what might happen: Leveraging marketing analytics’ predictive models such as clustering, regression analysis, and collaborative filtering, businesses can forecast changes in consumer behaviour. For example, they can predict when a viewer is likely to leave their website, or which lead might convert into a client. The advent of machine learning and other sophisticated statistical algorithms will help in expediting the process and predicting the likelihood of future outcomes.

  • Maximize efforts and streamline budgets: Coupling marketing analytics with market research could be instrumental in optimizing efforts and streamlining budgets. Translating marketing analytics insights into market research objectives will enable businesses in harnessing big data, channelizing efforts and streamlining budgets in the right direction and at the right time.

Finally

Nearly 84% of marketers state they cannot measure and report their program’s contribution to business (ITMSA). This underscores the need for marketing analytics for marketers. Also, it is very important to track and measure the performance of marketing efforts and compare the results against the set objectives. Using marketing analytics, businesses can validate if their marketing actions resonate with their goals and vision. Apart from comprehending market trends and customer behaviours, they can also create a metrics framework to monitor and evaluate marketing performance. This will help in mitigating marketing budget wastage and maximizing ROI by making data-driven decisions.

About harsh raj

Harsh is a passionate author and loves spreading knowledge throughout her writing. He's proficient in social media marketing, brand strategy, email marketing, SEO, Google Analytics. He's also passionate about content writing and graphic designing.