Marketing Analytics: what it is and tips to improve business

Marketing Analytics is the combination of technologies and processes that allows experts to collect data from all marketing channels and merge them into a single view.

Whenever you go online, you unavoidably create digital footprints by using tiny text files, trackers, and cookies. These digital markers not only store your identity but also record the websites you’ve been to and your online activities.

Digitalization has allowed greater audience profiling as hundreds of people access the web daily from computers or mobile devices.

Therefore, knowing how to make the most of Marketing Analytics, or more specifically Analytics, is a duty of every company that wants to increase profits and gain a competitive advantage.

Gathering data is not enough; one must rely on professionals who can extract useful information and improve the business strategy.

In the upcoming article, I will list the reasons behind this:

  • what Marketing Analytics is;
  • why analyzing data is important;
  • how to initiate a business analysis process.

In the era of Digital Transformation, analysis is essential to understand user behavior, optimize their experience, and increase sales. Nowadays, knowing how to manage Marketing Analytics means being competitive in the market.

Thanks to Analytics, one can study data and metrics to determine the ROI (Return on Investment) of various channels and identify new business opportunities.

To do this, one must rely on an analysis expert: the Web Analyst, a professional specialized in monitoring and extracting information from data.

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What is Marketing Analytics

Marketing Analytics, or Web Analytics, by definition, is the set of activities and tools through which you can analyze marketing data and obtain useful insights to develop effective communication strategies and processes.

This aims to improve the business. Web Marketing corresponds to strategic communication applied to online dynamics to attract users through the use of various digital channels aimed at achieving business goals.

marketing analytics tools

Therefore, Web Marketing is the various ways in which products or services can be promoted online, such as search engine optimization, advertising campaigns (PPC), blogs, email, and social media marketing.

Web Marketing Analytics is the discipline that measures and analyzes the results of online communication, allowing the extraction of relevant information.

Every business entity that wants to enhance its business strategy must pay particular attention to what emerges from the Analytics results. This is important to analyze the company’s performance and consumer preferences and behaviors.

Therefore, extracting information is essential for:

  • Professionals use it to understand which channel to invest in for a higher ROI.
  • Consumers benefit from personalized and targeted advertisements based on their needs and desires.

So, what is Marketing Analytics? It is a process that utilizes statistical and predictive models based on the collection and transformation of data into information.

This is done by choosing the most appropriate metrics to evaluate both the economic and commercial performance of sales channels and the “health” of the company.

Professionals specialized in data collection and analysis are highly sought after by companies. Take the test to see if you are suited for this role.

analysing competitors socials

Why data analysis is important

In the era of Web 4.0, Marketing Analytics is an indispensable practice. The internet, mobile devices, and cloud computing are the new trends that are changing the way businesses operate.

The internet and mobile devices have made every piece of information available at any time, consequently altering the customer journey; while cloud computing allows for the daily collection of an ever-increasing volume of data.

The concept of Digital Analytics refers to the analysis of quantitative and qualitative data from your business and competitors to drive continuous improvement of the online experience for consumers and potential customers, translating into desired results offline and online.

In short, analytics allow you to understand consumer preferences, track their actions, and measure engagement with your campaigns.

data analysis

To identify user behavior and a company’s true competitiveness, it is necessary to employ multichannel communication, and the marketing mix, and measure and implement actions taken by guiding and integrating the data.

The role of the Marketing Analytics Specialist is precisely this, considering all activities across all channels over a specific period. The questions it answers are varied: which channels to invest in the most?

What channels are competitors investing in? Are resources optimized correctly?

By using analytical methodology, it is possible to answer these questions, and brands can make predictions about the future and adapt their business strategy:

  1. To the product: by subjecting customers to questionnaires to gather direct feedback and align the product features with their interests.
  2. To the consumer: based on their interests, considering previous purchases, and also addressing issues encountered during the purchasing experience.
  3. To the channels: marketers need to know which digital and social media channels are most utilized.
  4. To the competition: to understand if competitors are using different channels compared to their own.

Reports and analysis of your communication strategy allow you to show ads to the right people, on appropriate channels, and at the most opportune moment.

Marketing Analytics holds significant importance due to its ability to enable you to:

  1. Quantify your information: analytics enables you to understand data such as ROI and PPC (Pay per Click) campaigns, place them within a specific timeframe, and determine if you are moving in the right direction.
  2. Transform data into insights: analyzing and transforming data into insights helps you understand whether to continue certain actions or not (you need to ask yourself some questions, like if there was an increase in sales, or if your products were endorsed by influencers, or if customers are coming from your campaign).
  3. Compare your marketing data: there are differences in revenue based on demographics? Did the ROI of your PPC campaign perform differently from your Facebook campaign?
  4. Stay goal-oriented: Focus on your objectives, such as generating website traffic or increasing sales.

Marketing Analytics is important because it helps you understand how users interact and measure the effectiveness of the actions taken.

How to start a Web Marketing Analytics process

Starting a Web Marketing Analytics process is essential to achieving and increasing business goals. It allows you to identify what works or doesn’t work in your business strategy and the channels to invest resources and time.

Furthermore, it enables you to understand which communication campaigns to undertake to retain existing customers and acquire new ones.

How to set up the Web Marketing Analytics strategy?

  1. Define your goals.
  2. Identify tactics and strategies suitable for your business.
  3. Choose the right Key Performance Indicators (KPIs) based on the goals to achieve.
  4. Identify the audience and behavior.
  5. Choose segments to analyze based on KPIs.
  6. Identify the target.
  7. Use analytics software.

 

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Analyze the business situation

The main purpose of analyzing online communication is to identify the correct digital strategy, based on sales, buyer personas’ customer journey, and the channels used.

Therefore, it is necessary, first of all, to conduct an analysis of your own company.

The business application of Marketing Analytics must be comprehensive, adopting an analytical approach and reporting on:

  • Past: understanding which strategies and campaigns to improve or eliminate.
  • Present: understanding the customer journey and their perception of the company.
  • Future: understanding the target audience and transforming short-term achievements into long-term success.

Reporting on the past, and present, and making predictions about the future involves:

  • Identifying channels with negative responses.
  • Strengthening tactics and strategies.
  • Optimizing different communication processes.

Set goals and KPIs

There are three fundamental rules for a good Marketing Analytics process:

  1. Understand the consumer.
  2. Measure the engagement of current or potential consumers.
  3. Track actions to implement the business.

Data collection cannot be an end in itself; the chosen metrics must align with the company’s objectives.

In order to optimize the user journey, it’s essential to define the company’s short-term and long-term goals. Different types of businesses analyze Analytics based on objectives (business objectives) and measure them through specific outcomes (Measurable Outcomes).

business sample objectives

Table indicating how results are measured (Measurable Outcomes) for different types of business objectives (Business Objective)

Quantitative data, or KPIs, are numerical indicators that reveal how the company is performing. Important ones include:

  1. Page views: indicates how many times a page has been viewed by users (higher numbers suggest engaging content).
  2. Session: groups of interactions on the website or social media within a specific timeframe.
  3. Page view time: helps understand user engagement by measuring the time spent on a page.
  4. Users: number of people or followers visiting the site or social media pages.
  5. Unique page views: number of sessions where the page was viewed once or more.
  6. Bounce rate: ratio of single-page sessions to all sessions (high bounce rates indicate lack of user engagement).
  7. Exit rate: ratio of last page views before exiting to all page views.

KPIs are crucial indicators as they reflect the strengths and weaknesses of your marketing strategy.

If quantitative data tells you how users behave, qualitative data answers why users take a specific action or not. You can gather this information by conducting interviews or creating surveys to receive direct feedback from users.

Some questions could be, for example:

  • Why did you visit the website?
  • Why didn’t you invest much time on the website? 
  • What were you searching for?
  • Why did you abandon the cart without completing the purchase?

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Measure performance with Analytics tools

The work of a Web Analyst is based on continuous data implementation, so it’s essential to use Marketing Analytics Software.

To implement strategies, it’s crucial to continue gathering both quantitative and qualitative data. This is done through specific Analytics tools capable of analyzing data from web channels, social media, and mobile applications.

Some of the most commonly used Analytics platforms to collect and extract information include:

  1. Google Analytics: one of the most famous Analytics software to investigate user behavior on the web, providing reports on audience, acquisition, behavior, and conversions.
  2. Hotjar: an Analytics software that allows understanding where people have left the site (records sessions) and displays a colored map with the most clicked elements.
  3. Facebook Insights: a tool that analyzes the audience and interactions with posts, videos, and stories; it allows viewing reports containing page views, links, and post reach.
  4. Instagram Insights: to activate this tool, it’s necessary to link a business account to the Facebook Business profile, but after activation, you’ll see information like audience, age, gender, and top-performing posts.
  5. LinkedIn Analytics: an already excellent tool in the free version that provides views of the profile, post interactions, and link clicks.
  6. Hootsuite: a comprehensive paid Analytics tool that allows having all social data in one platform, enabling quicker comparisons.

How to become an expert in Marketing Analytics?

The professional responsible for analyzing and measuring data, and creating reports that help understand and optimize websites, social platforms, and apps is the Web Analytics Specialist.

They analyze, study, design, and implement Digital Marketing strategies to improve performance. Additionally, it’s crucial for understanding the online user experience and gaining a competitive advantage.

The Marketing Analytics expert uses tools, metrics, and web analysis methodologies to extract useful information from the available data, profiling users in a targeted manner.

web analysis tools

This goal is achieved by continuously performing 5 processes:

  1. Measurement
  2. Reporting
  3. Analysis
  4. Testing
  5. Improvement

Skills required for a Digital Analyst are varied and cross-functional. The essential ones include:

  1. Analytical skills: must be able to conduct quality analysis, meaning they should have experience and be capable of collecting the right data, including models and purchasing trends of the audience.
  2. Strategic mindset: based on the previous information, they must be capable of providing appropriate advice to improve campaigns with low ROI, altering the customer journey, and implementing marketing strategies.
  3. Deductive abilities: must understand and grasp consumer trends and offer them a multichannel experience.
  4. Knowledge of Analytics software: must be well-versed in automated data collection platforms.
  5. Collaborative spirit: must collaborate with other departments (such as sales or product creation) and show them how to leverage the reports they have generated.

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Tips for a successful Marketing Analysis

Obtaining a successful marketing analysis means analyzing, extracting, and aligning data with your communication strategy. Doing this allows you to understand what works and what needs improvement or change.

To increase business growth, remember to:

  1. Segment your customers based on their demographic data (age, gender, geographic location, marital status) and their behaviors (if they abandon the cart, if they purchase regularly, or if they visited your site once); segmenting the audience allows you to avoid focusing on non-affine people and maximize ROI.
  2. Ensure you have quality data, meaning data collection should always be up-to-date (reports from 5 years ago do not provide a current snapshot) and goal-oriented.
  3. Always think about your future-oriented strategy, and use software for “predictive analysis” based on past marketing data.
  4. Identify what doesn’t work in your communication strategy by addressing gaps or issues that are identified.

successful marketing analysis

I’ve provided you with 4 tips for successful analytics, but what should you avoid if you want your business to grow? Here are 3 mistakes to avoid:

  1. Focus on light metrics: Concentrating on light metrics (impressions, followers, or likes) can mislead you because they are not reliable metrics to determine if the right investments have been made.
  2. Focus on data quantity: Quantitative data (such as page views or new users) is crucial, but qualitative data, answering why users behave a certain way, should not be overlooked.
  3. Perform activities before data analysis: Once the budget is established, it’s easier to see how much has been spent compared to the results it brought. Without analysis, there’s a risk of underestimating potentially key marketing areas and diverting funds into sales.

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Marketing Analytics: future challenges

Analytics platforms allow storing and processing a vast amount of data quickly. However, marketers still face challenges in organizing data effectively for easy consumption.

What are the future challenges of Marketing Analytics?

  • Data quantity is a significant issue, as impressions or clicks become irrelevant without optimization and in-depth analysis.
  • Data quality is crucial; focusing solely on quantity without extracting useful information is a pitfall.
  • There’s a lack of Data Scientists and specialists who can interpret the data effectively.
  • Choosing the right attribution models based on business goals to generate reports that can determine user behavior.
  • Integrating offline and online data.

Integrating marketing and data-centric business strategy requires developing integrated reporting systems (combining data from different communication channels into a single document).

Thus, the real challenge of Marketing Analytics lies in the ability to integrate and implement an effective marketing strategy based on data-driven insights.

Conclusion and strategic consultation

Marketing Analytics allows you to integrate communication strategy with strategic analysis of information. It’s a crucial activity that every business should undertake, employing Web Analysts, to grow and increase return on investment.

Allow me to leave you with some final advice, which might be helpful in strengthening your Marketing Analytics strategy:

  1. Measure the collected data.
  2. Analyze reports based on the metrics and KPIs you’ve chosen to understand your business trends.
  3. Extract insights and make hypotheses.
  4. Test your hypotheses.
  5. Implement your strategy.

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