Marketing analytics is the practice of collecting, managing and manipulating data to provide the information needed for marketers to optimize their impact.
Typical Applications of Marketing Analytics
Measure Performance of Marketing Campaigns
The most basic form of marketing analytics is to provide marketers with the tools to understand what business impact their marketing campaigns have. This task can range from something as straightforward as providing standard metrics (click-through rate, ROI, etc..) at the campaign level to an analysis as complex as developing a Market Mix Model to come up with the optimal marketing strategy to maximize profit.
Find Opportunities in Marketing Performance
While marketing performance analytics will let you know on the whole how a campaign performs, it isn’t until someone digs in to many cuts of data to uncover whether there are certain types of users that respond better to particular marketing treatment - perhaps some campaigns work better in certain markets or on mobile. Marketing analysts mine and model your data to uncover nuggets that can be acted on by marketers.
Understand Your Customers
Diving deep into customer demographics and behaviors can help you understand which are more likely to be successful. This information can then be used by marketers when selecting their target audiences. Through data mining and statistical modeling, marketing analysts can provide a rich understanding of your customers and what drives success.
Understand Your Competition
Market research is often within the domain of marketing analytics and it can help marketers understand the competition better and adjust their strategy accordingly.
Marketing analytics provides insights that allows a marketing team to work more efficiently and to have a bigger impact on the business.