What is Marketing Analytics and Why You’re Probably Doing It Wrong

If your company spends more to make sales than the lifetime value you get from customers, you have a problem. Savvy marketing analytics can help!

Welcome to the next article in our series on marketing data mastery. Analytics has become a pretty standard buzz-term in e-commerce and marketing, but many still don’t quite understand it’s role and value in business health and growth.

This confusion has been amplified by the fact that business practices have utterly transformed in the last century. We’re still trying to create and utilize the most effective tech to understand and make use of the sheer volume of data now being generated each day.

Over 2.5 quintillion bytes of data each day, in fact.

This blog post will clarify the mystery of basic Marketing Analytics so you can identify how to stop wasting time and money on marketing and sales generation that simply doesn’t deliver a significant return — and what to do instead.

First things first, what is Analytics?

Analytics is a catch-all term for anything relating to the discovery, clarification, and intelligence of data patterns. The various data niches come into play when you select the defined data to analyze. Web data? Market data? Purchase data?

Analytics is valid for literally everything you have questions about. Consider it the key to unlocking the inner workings behind your loved and loathed business actions and results.

Web Analytics plays a significant role in your marketing and sales generation as a whole. Obviously, considering your marketing efforts most likely lead potential clients back to your website and online store.

Having the necessary skills in your company for reviewing and interpreting your web analytics is vital if, for example, you notice patterns that show your campaigns are converting and driving leads to your site. Yet, sales aren’t closing as they should be.

Web analytics will help you find where the breakdown is so you can make necessary changes and get back to what matters: delivering fantastic products and services, growing your business, and making money.

While web analytics plays a significant role in your success, for this post, we’ll be focusing primarily on marketing analytics.

Marketing Analytics is the simple (in theory) act of looking into the patterns, information, and potentials held within the data created through your marketing actions.

This data comes from the various systems and technology you have in place for your marketing efforts -systems usually accessible with the very platforms your online store is hosted by as well as your lead/sales generation campaign platforms.

Once data is explored and interpreted, you’re able to see which of your marketing processes are generating an ideal ROI, and which ones are a straight-up money suck.

From there, you’re able to plan and prioritize sales strategies and systems that are right for your goals by getting the answers to questions like:

• Are our current marketing strategies performing to our desired standards? Will they in the future? Are there areas that need improvement?
• How do our marketing efforts measure up to our direct competition? Have they tapped into resources we’ve neglected? Are they leading on channels we’ve been lax on?
• Are you prepared for your next steps? Do you need to modify what your primary marketing focuses have been? Do you have the necessary time, money, and resources to reach your goals effectively? How should your investments look moving into the next quarter and the following year?

When you’re educated on your data, you can make smart moves that minimize wasted marketing funds and efforts while maximizing your reach, revenue, and company growth.

The value and necessity of Marketing Analytics are crystal clear: if your company spends more to make sales than it generates from those sales, change what you’re doing!

Where Might Your Company Be Going Down The Wrong Road With Marketing Analytics?

Well, the simple fact is that most companies don’t have the skill and talent required to make the best use of their data. One CMO Survey found that only 1.9% of marketing leaders reported that their companies have the right expertise to leverage necessary marketing analytics.

You’re a lucky duck if you happen to be one of that 1.9 % of companies!

But if not… you’ll want to keep reading.

There is a considerable gap between the average marketer and an expert data analyst. There’s another gap between the potential analytics holds and the reality of what it takes to understand and act on it.

Not at all surprising considering that 90% of today’s data was created in the last few years alone.

These gaps have been bridged to an extent through the variety of tools, tech, and programs available on the market today. However, some tasks should still be assessed and delegated to those most capable -be it other members of your staff, or an agency you can contract with.

Now that we’ve what marketing analytics is as well as what you may be doing wrong with it, let’s get into what you can do RIGHT!

Marketing Analytics: 3 Tips on Where to Get Started

1. Variety is the Spice of Life! Make Sure You’re Using a Variety of Analytic Tools and Techniques

To really get into the juicy goodness of your company data magic, you need an assortment of tech tools. Tools that can help you:

Understand data from the past. Find what worked and what didn’t by using your tech tools to answer questions like: Which campaign performed best last quarter? Are email campaigns still worth it according to the last run? How many new leads did you acquire through your new social media strategy?

Understand the data from the present. What about your current systems and strategies? Do they make the cut? What are the top ways your customers engage? Which channels do they show up most powerfully on? Are you getting more shares and features on some platforms more than others?

Gain clarity for future direction. Marketing analytics should be used in your planning meetings to set up sustained growth by helping you plan a winning strategy. How will you increase loyalty and repeat transactions? Should you accept that offer for outbound sales? Which products might need to be replaced?

Check out this article on the 20 Best e-commerce Analytics Software for 2020!

2. Be Real About Your Skill and Aptitude, Find Help for the Rest

The fastest track to success is by doing what you do most masterfully and delegating the rest. Data analytics is no different! Be objective about what you and your team feel qualified and confident in handling and find outside help with the rest.

Many small to medium e-commerce companies are used to running on tight budgets and cutting corners as priorities shift and stress levels rise. Unfortunately, they often prioritize tasks and investments that rely on the accurate use of marketing data, and without it, they end up with high-risk, low-return investments.

Don’t be that guy/gal.

Do some practical soul and goal searching and find a specialist that can help you where you can’t help yourself.

3. Don’t Sit on Your Findings, APPLY Them!

This should be common sense, but it’s worth driving home just to make sure! Why? Because even though analytics is indeed a trendy buzz-word, 80% of online retailers are STILL misusing data!

What good is paying for analytics technology and team support if you don’t make use of it once you have it?

If your email campaigns aren’t being opened, find out why and fix it. If your shopping cart makes purchases hit and miss, update it. If your social media campaigns don’t convert, modify them.

Bottom line? Stop wasting time, money, resources, and energy in things you KNOW aren’t working. Make a quick list of your top-of-mind problems, do the analytical research to find the issues, make the necessary changes, and get back to growing and thriving in your business!

In summary; Marketing Analytics IS Your Friend.

And all great friendships require a getting-to-know-you phase as well as continued relating and communication. If you’re feeling a bit overwhelmed by all the unanswered questions in your e-commerce analytics, reach out, and we’d be happy to help you find solutions and strategies that work for your unique needs — without all the stress of doing it yourself!