In today’s data-driven era, marketers and business owners are constantly sifting through oceans of data that help drive bottom-line impact. Nowadays, businesses must know what works well for their campaigns by analyzing potential challenges and pinpointing areas they must focus on.
With so many marketing analytics tools and strategies, selecting the one go-to solution to get your ball rolling may seem daunting. Therefore, to help propel you in the right direction, the article below will provide valuable insights into some of the most powerful marketing analytics tools, assisting you in aligning your business goals while monitoring return on investment (ROI).
Marketing Analytics Tools and their Importance
Tools that allow enterprise owners and marketers to make proactive decisions by measuring, managing, and analyzing marketing data, thus elevating their marketing performance, are called marketing analytics tools. These solutions help evaluate the performance of marketing campaigns so businesses can make timely decisions on the utilization of resources.
These data-based decisions can help achieve higher real-time efficiency in campaigns – ultimately kick things up a notch for enterprises in today’s highly competitive marketplace. Given below are four important milestones that businesses can achieve by incorporating these tools:
Marketing is focused primarily on generating revenue. These tools help businesses decide on resource allocation by having a clear picture of which marketing campaigns are performing well. This helps spot the weakest marketing channels while maintaining an accurate marketing budget utilization.
Consumer churn is one of the major concerns for businesses, especially subscription-based businesses. Hence, marketing analytics tools can help companies decipher warning signs of churn and take corrective measures to prevent it.
For instance, if there’s a rapid decline in your product usage and customers are more likely to churn, you can reach them with personalized support and deals to keep them engaged.
A customer’s journey comprises distinct touchpoints where they expect different information that helps answer their queries. As a business owner someone does not meet these expectations, converting customers can become an uphill task.
Therefore, marketing analytics help to track each customer’s unique journey, identifying the type of content that would most likely convert them. These personalized journeys ensure a positive consumer response and improve the conversion rate to a great extent.
One of the main features of effective marketing is attribute modeling – assigning credit to marketing channels based on their sales generation. These help in efficient resource allocation by filtering out channels with most effective driving conversions.
Deploying marketing analytics tools help enhance attribution modeling by assigning credit to the channels generating higher revenue and sales.
Streamlining the customer journey by understanding how different consumers interact with your product and service is essential for building a robust marketing strategy. Therefore, dividing end consumers into groups based on shared characteristics is a strategy that falls under cohort segmentation.
Marketing analytics enhance your cohort segments by providing valuable insights into which cohorts are most significant and which are at risk of churn. This information enables enterprises to target the right groups in their marketing campaigns.
Marketing data is spread across multiple platforms, making it difficult to get a clear view of your overall marketing performance. Therefore, these tools can help streamline your data by bringing it under a unified framework – provided that you deploy the right solution meeting your enterprise’s requirements.
Marketing Analytics Tools Help Drive Business Growth
Marketing analytics has shown the value of data analysis as it is not merely the cornerstone to surviving an economic crisis but also for escalating business growth. Also, with limited marketing budgets, it is crucial to identify what factors need priority to gain a competitive edge in today’s marketplace.
For this reason, the de facto method for enterprises should be to formulate carefully planned investments in both systems and software. For further elaboration, below are four reasons why marketing analytics tools boost growth and companies should be investing in them right now:
- Gaining a competitive edge with competitors: The right data insight can help marketers find alternative ways to gain a competitive edge within the market without compromising their budget limitations. With the right analytics tools, you can spot where to focus marketing attention on customers and convince them to stay loyal to your brand.
- Identifying new trends while broadening the horizon: Conversion tracking helps you spot new keywords that help in optimizing future campaigns. Additionally, marketing teams deal with multiple offline and online multichannel campaigns. Hence, gathering insights is important for engaging the end consumer.
- Growing ROI: Campaigns require a handful of marketing budgets. If these do not generate enough returns, your company will have its budget stripped. Hence, with marketing analytics tools, enterprises can pinpoint the characteristics generating the highest ROI. Marketers can extract the channels, keywords, and audience that will bring out the most profit for their organization.
- Understanding the needs of potential customers: Another significant outcome of marketing analytics tools is limiting the guesswork on tactics that will resonate with your customers. Attributes like speech analytics will enable your company to access real-world customers to experience their views, sentiments, and issues. These real-time customer conversations will allow you to formulate more profitable campaigns aligned with the changing consumer needs.
Factors to Consider for the Right Marketing Analytics Tools
Selecting the right marketing analytics tools is crucial since it has the potential to touch so many parts of an enterprise or business model. To make the selection process seamless, below are some tips a marketer can use to extract the most out of marketing analytics:
Be clear on what your enterprise hopes to achieve through its marketing efforts. For instance, increasing web traffic, generating more leads, or promoting sales as this will help formulate common ground for everyone on where to focus their marketing efforts.
Once you are clear on your goals, select the metrics that align with your goals. This selection is highly significant as it will allow you to measure the outcome of your marketing efforts.
Data connection should be through multiple sources to get a clear view of how your marketing endeavors are performing. These may include website analytics, consumer feedback, email statistics, and social media platforms.
Automated reporting systems allow proper collection, analysis, and reporting of marketing data. These efficient systems help save time and ensure the collected data is consistent and accurate.
Utilizing the A/B testing technique and iterative methods for data collection helps to improve your marketing efforts to a great extent. These periodic data-driven insights keep you up-to-date with customers’ fluctuating requirements.
Collaborating with teams by sharing insights and findings is essential for improving marketing success. Marketing analytics tools provide dashboards to display marketing analytics, KPIs, and metrics like data visualization, enhancing team collaboration.
Taking the lead on new technologies is another factor contributing to the success of marketing analytics.
Monitoring at regular intervals with reviews on marketing data helps in optimizing data-driven decisions and future marketing campaigns.
Different types of Marketing Analytics Tools
With varying marketing strategies, enterprises require numerous marketing analytics tools. These can be divided into three main categories irrespective of industry, viewers, and marketing goals:
- Web analytics tools: Web tools help marketers track their website traffic like the time users spend on the website and where they are from. They gather insights about your website’s performance like comparing metrics regarding the new vs. returning website visitors in two different quarters of the year. Website analytics tools also help see which sources attract more visits and extract data on pages your site visitors spend most of the time. Marketers can gather useful insights about their website performance with a few clicks and one glance at the screen.
- Social media analytics tools: Social media tools collect data from social websites to enhance their marketing activities. These insights are not limited to sharing and likes but allow you to track conversations around your product and industry. These social media alerts also enable you to track someone mentioning your brand name. Some tools also help marketers to detect positive and negative emotions behind social conversations using artificial intelligence (AI). These social media analytics help to analyze how users react to your social media campaigns and interactions with your products and services.
- Email marketing analytics tools: Email analytics allows tracking of how your mailing list subscribers interact with your emails. These insights include user-specific details on how many people opened the mail, read it till the end, or closed it instantly. The collected data guides marketers in strategizing email marketing campaigns and gaining the most optimal results. They provide tips and tricks on what subject lines attract more people to open and read your emails and what will ultimately encourage them to open your website or product link, boosting conversions.
There are a plethora of valuable platforms having made a mark in marketing analytics. Hence, the question isn’t about which is the best, but rather the choice between what works for you and what doesn’t based on your requirement. To make it easier, we have listed below some of the best solutions you can choose from:
The main objective of Mixpanel is to monitor events that users perform on your website or mobile application. After users add an event to Mixpanel, the software allows you to spot the latest trends, the users using them, and their utilization order. Other significant features are funnels, A/B testing, and tracking individual user sessions.
The platform is developed especially for product managers and marketing teams since it uses a more product-oriented approach. Users can add code annotations or use the visual selector to highlight the actions they wish to track. These are added to the dashboard after selection with personalized metrics for viewing.
Heap is one of the most robust marketing analytics tools with numerous common functionalities to Mixpanel. The platform spontaneously tracks actions taken whenever a user visits your website and allows a manual selection of events in your dashboard for analyzing and previewing. Marketers can also create personalized user segments based on user behaviors.
The platform does not support Android based applications. However, if marketers want data on events regarding their website, product, and iOS application, Heap is the go-to solution. One of the best features of Heap is its retroactive function, allowing tracking of user activity right after installation, even if they weren’t initially selected.
One of the most straightforward and basic entry-level platforms is Google Analytics. It allows users to track their website traffic on where the visitors are from, what they are doing, and why they are leaving your website. The tool is also linked with Google Adwords, allowing you to learn about optimization and trace your SEO capabilities.
If you wish to test how marketing analytics work, the basic starter version of Google Analytics is a good choice. But, the main downside of this software is that you only get what you pay for. The tool is great for collecting customer aggregate data but does not allow individual user tracking.
This marketing software allows users to monitor marketing campaigns via one unified platform. It gives a bird view of your marketing data and cross-channel reporting in real-time. The dashboard allows easy integration of your dashboard with Facebook Ad campaigns so you can easily monitor your campaign performance and gather website analytics and metrics.
The platform allows marketers to integrate data from different marketing tools in one place for an enhanced user interaction viewing. The tool enables tracking of social media and PPC marketing channels, sales forums, and much more.
The Cyfe software enables users to connect with Google Analytics, Google Adwords, or SalesForce accounts and all the data from these tools into a single dashboard.
The software allows users to track customers’ journeys across multiple platforms and devices, analyze their behaviors, and give valuable insights about conversions. The features include bounce rate, site time, behavioral analytics, and insights into how viewers interact with content on your website.
You can also spot what elements attract users so they can be incorporated and help to retain them. Features include A/B testing, how content changes affect your results, and ensuring the usage of correct modifications that help reach your goals.
Effective marketing campaigns help organizations pinpoint what exactly works for them. While this is easier said than done, metrics like engagement, click-through rate (CTR), conversions, and ROI are some of the most common features that can help determine what resonates best with your audience.
Given below are two marketing analytics case studies on how these companies used data to build successful marketing campaigns that have kept their boats afloat amidst today’s competitive marketplace:
Netflix is one of the most widely used online video-streaming platforms and has leveraged its user data in numerous helpful ways. The company has always positioned itself ahead of competition by taking the digital-first approach to customer loyalty.
With so much data available, Netflix had numerous goals for the company’s marketing analytics. However, one significant business objective they always focused on was customer retention. They dug deep into what the public wanted from an online streaming platform and what convinced them to stay.
Netflix used marketing analytics to identify what flaws can lead to unhappy customers, and this helped them improve its products along with continued innovations. These initiatives helped the company stay at the top and stopped the customers from seeking an alternative solution.
To solidify its customer retention objective, Netflix constructed data from virtually all its interactions with 150+ million subscribers. They used these valuable insights to spot how customers navigate the platform and what they watch. These personalized customer profiles helped combine unique recommendations for each user, suggesting ideal content.
To help provide these personalized profiles, Netflix collected the following data:
- Devices customers used to stream content
- Days and times of the week when they viewed content
- Number of episodes of a show they watched during one sitting
- Whether the paused and resumed content
- The number and type of searches the customer usually performs
According to stats, the company generates US $1 billion in value yearly due to its algorithm based on customer retention. The potent Netflix algorithm with relevant collected data for marketing analytics is one of the most significant reasons for its 80% viewer activity. The platform constantly generates content based on users’ liking that helps encourage higher viewership.
Recently, Netflix’s retention rate also surpassed streaming competitors like Hulu and Amazon Prime. The platform has reached a 90% retention rate, which means most of the users continue subscribing to the service month after month. In contrast, Hulu and Amazon Prime have a retention value of 64% and 75%, respectively.
Allrecipes has around 18 websites, more than 85 million users, and is one of the largest digital food brands. However, the company still faces humongous competition from other food-based applications and websites. The company relies on marketing analytics to help flourish in this highly competitive environment. These insights enable the company to analyze market trends and understand customer journeys.
The company has set some wide-ranging goals to help establish its customers across the globe. These include improving user experience, increasing video engagement, driving mobile engagement, expanding user base, and enhancing advertising revenue.
Allrecipes generates a ton of traffic from numerous users across the globe, aiding in improving the user experience. The company looked beyond its websites as more people started using mobile devices to access the brand’s content. To help identify how dining trends are altering, the brand utilized a simple and effective way of identifying developments to capture a much bigger user base.
The brand utilized Tableau as a business intelligence platform to process marketing analytics from numerous channels. The program allowed Allrecipes to use one platform for visualizing data from Adobe Marketing Cloud to pull its website marketing data. Hitwise and comScore helped the brand in sourcing demographic data.
The Tableau platform came with numerous perks like building custom dashboards and tailored reports for answering all brand queries. Allrecipes was able to pursue collaborations across the company while analyzing data within a single dashboard. Moreover, many departments including marketing, design, and finance contributed to the seamless functioning of the tool.
The Tableau platform helped Allrecipes to make intelligent decisions while progressing towards their goals. The insights on marketing analytics helped them improve user experience by visualizing how visitors typically used their site like submitting recipes, sharing information, or posting links. These customer interaction details helped them make data-driven decisions based on their objectives.
The brand discovered dessert was the most popular niche and generated more views. Hence, they focused on creating a separate video hub for dessert recipes. They also used insights to improve mobile sites by optimizing content and promoting photo uploads.
There’s no denying that software-led approaches like marketing analytics can bring unfathomable benefits to your company. What’s more interesting is the fact that these insights positively impact not just the marketing department but all branches within an organization – making the implementation even more worthwhile.
These data-driven approaches help enterprises make informed decisions, track marketing campaigns, and constantly uplift their marketing strategies. The 360-degree view of a business provides optimization and control. These practices lead to better decision-making, improved efficiency, and effective marketing performance.
Therefore, having the right marketing analytics tools in place is extremely crucial these days, especially since data is every marketer’s best friend. Being clear on where your audience is engaging and what will ultimately drive sales helps ensure that your company utilizes its resources effectively.