Recently there has been a lot of mention and excitement around big data and how it will transform marketing. Although big data has its place in effective marketing analytics for measurement and trending shouldn’t be discounted. Different types of analytics should be implemented into all your marketing practices from the planning stages to the end and beyond of a campaign. It’s through analytics that the success of a campaign is measured and analytics can be used to improve your marketing decisions for future campaigns. Below are 3 ways to use analytics to improve your marketing:
We all know the importance of measuring your marketing campaign as it’s underway. By tracking your results and measuring key metrics you know what works and what doesn’t, know how far off you are from meeting your targets, and very importantly provide results to your boss. This type of analytics is usually at a high level, sales generated by a particular marketing campaign, website traffic, website referrals, email open and clicks, and ROI.
Measurement and monitoring are also great to use for campaign testing, whether you’re testing a small fragment before you launch your campaign or if you are adding testing elements into your campaign to implement in your next campaign. Without the proper tools and metrics you won’t know how well your campaign worked.
Marketing measurement tools such as google analytics, email software measurement tools, and database queries and reports are necessary marketing tools.
2. Target marketing focus
Taking analytics beyond your customer sales data enters you into a completely new realm of marketing possibility. Imagine knowing which of your average customers had the potential of becoming one of your best customers? How would this change your marketing strategy?
Through using 3rd party data and analytics you can have your customers scored and find out which of your customers have the potential of becoming a loyal customer, which will only ever purchase once or twice a year, which have the potential to spend more, which will only purchase sale items.
Big data has many uses but two different ways to use it is to get to segment your customer database and to score your customers.
Get to know your customers better by having a 3rd party data provider analyze your data to determine your customer behaviour segments. Look at your customers by postal code, disposable income, family structure and size, age, and other demographic information. By knowing the demography groups that your customers belong to you’ll be able to target and plan future marketing efforts more effectively. Using your main customer segments you can narrow down your customer base and focus your marketing efforts on targeting specific markets based on the enhanced demographics from 3rd party data. By focusing your marketing efforts on a few segments you can use your budget where it will really matter and meet your goals. It can also help you plan mass marketing efforts by focusing on the right publications, website, and geography.
A 3rd party data provider pulls together your customer data with 3rd party data and based on a number of criteria provides a score for each customer based on the criteria established by you. Having your customer data scored can help you learn which customers have the capacity to spend more, which could become loyal customers, or which meet your ‘best’ customer profile.
For example if you want to grow your ‘best’ or most loyal customer base, the analyst will analyze your customer sales data and determine who your best customers are. 3rd party data is added to the mix and a complete customer profile is created. Based on this information the rest of your customer database is analyzed and each customer will get a score on their propensity to become one of your ‘best’ customers. Using these scores you can then focus marketing efforts to convert the customers with the highest scores to your ‘best’ customer club.
3. Using analytics to improve your marketing results
Measuring and tracking your results on a micro level can help improve your marketing results. By looking more closely at marketing results you can determine specific marketing strategies to deal with different segments. You may learn that one segment responds to sale based email better, or another only responds to new product emails, or another opens email that’s sent in the morning vs. email sent in the evening. By digging into your sales data more closely and market according to your historical results you can improve your ROI and profit by spending your budget more effectively.
Act now to improve your marketing with analytics