- The article explains the importance of using marketing analytics in small businesses
However creative it is, marketing has a vital data-driven component to it. To execute an effective strategy, you need to make decisions based on cold facts. That’s where analytics come into play.
You’d be surprised by the amount of actionable information that marketing analytics can yield. It goes beyond just helping you tweak your ad campaigns. With a solid analytics system, you can gain a deep understanding of the market and your audience, which allows you to move your business in the right direction.
Let’s dive into some of the most valuable uses of marketing analytics.
Delivering Personalized Experiences
Most businesses operate in highly saturated markets that leave no room for generic products or marketing approaches. Your customers expect an offer tailored to their needs, and the best way to understand those needs is through analytics.
By understanding your customers’ online behavior, you can segment your audience and deliver campaigns that will resonate with each group. Doing so will not only improve your conversions, but also lower marketing costs.
Looking into the Competition
Marketing analytics aren’t just useful for assessing your own efforts, but those of your competitors as well. There are countless tools that give you an insight into the tactics that others in your niche are using. You can see their key means of promotion, keywords they’re targeting, and lots of other information that you can draw ideas from.
Now, this isn’t to say that you can (or should) copy your competitors. Every business has its own specifics, so you need to find what works for yours. And that’s exactly the sort of input that analytics can provide.
Monitoring and Predicting Trends
No technology can see into the future and give you 100% certainty when it comes to business moves. However, predictive analysis can come close enough to let you make decisions with confidence. Based on historical data, you can identify trends that will help you avoid threats and jump on opportunities.
For instance, you might notice seasonality when it comes to sales. Doing so will help you get the most out of peaks and prepare your budget for the valleys. You can also know when it would pay the most to double down on marketing efforts. This sort of planning ahead will make your business significantly more efficient.
Understanding Marketing Costs
How much does it cost to acquire a customer? Which of your strategies is making the most money, and are there some that might be losing it?
If you can’t answer these questions straight away, you should definitely have a closer look at your marketing analytics. There’s a high chance you’re using a multi-channel approach to marketing. Each of the channels costs time and money, and not all of them are worth it.
By drilling into analytics, you can gain a deeper understanding of where exactly your money is going. Pair this with the right tests, and you’ll see which strategies to abandon in favor of focusing on others.
Staying Focused on Your Goals
Marketing analytics goes beyond tracking a few metrics. Many small businesses monitor and report just for the sake of it. A solid analytics system allows you to track what really matters and contributes to your business goals.
With the right approach to analytics, you’ll know precisely how far you are from each milestone. Not only can this motivate your entire team, but it also helps you avoid steering off course. And in case you do, you can take corrective action quickly and get back on track.
Numbers Don’t Lie
There’s a plethora of uses for marketing analytics if you’re mindful of what you’re tracking. In case you haven’t developed a comprehensive system, you’ll want to do it sooner rather than later. The last thing you want is to grow your business based on hunches.
Identify your KPIs, and then create a solid tracking system for each. Bring it all together in an analytics strategy, and you’ll always have a firm grasp of your business.
About the Author
Pamela Wigglesworth, CSP, is an international communication consultant, high-performance presentation coach, speaker, and CEO of Experiential. She helps clients establish their executive presence, structure a clear, concise message, and deliver their thoughts and ideas with style, confidence, and authority.