I would define marketing analytics as the methodological approach of examination of data to understand and determine actionable knowledge. I make emphasis on actionable because otherwise, I would describe it as satisfying your curiosity. Therefore, marketing analytics can be considered both an art and a science.
It’s considered art because it’s almost impossible to have all the data available. Sometimes we must estimate certain values or follow our instincts developing hypotheses or reviewing an analysis that seems perfect but does not feel right (Yes, sometimes data can be deceiving). I would also make an argument that communicating findings of data analysis is quite an art.
It also a science because it requires a systematical approach of testing hypotheses with available data using observation and experimentation with math and statistics.
Marketing analytics can help you grow your business by improving both your content and your understanding of your target audience, and to evaluate your campaign efforts.
Improve your content
There is more to social media than to post a nice picture with a clever caption. You must also evaluate what type of content gets the best results with your audience.
Looking at information regarding age, gender or location can give powerful insights when deciding on what types of posts to make and when to deliver them.
Use analytics to understand your target audience
As an entrepreneur, you must analyze the reality of the community around your business and any trends that might impact customer preferences. To clarify let’s look at two examples:
- First, mobile payment as a payment method could become a need of convenience for customers.
- Second, variation in the income per capita, which may impact the willingness to pay.
The census offers excellent information by regions, allowing you to make business decisions with data. Therefore small businesses don’t have to invest in expensive market reports to get information.
For example, selecting a location for your store, you want to know if the is a high number of competitors. Secondly, you need to research the reasons for the low number of competitors to see if there is an opportunity.
Evaluate your campaign efforts
Campaigns should have goals and KPI’s. Making marketing analytics critical to understanding if your efforts are on the correct path or if you need adjustments.
I have monthly meetings with my marketing agency to see results and learnings. In short, periodical meetings will help you keep control of what is going on.
I hope you enjoy this week’s article. I will be focusing on subjects like this in the coming weeks. So stay tuned for more content! If you have any questions, please feel free to reach out in the comment section below.