Why Data Analysis Is Important for Marketers
Data analytics has redefined every aspect of marketing, from big data and personalized ads to product packaging and storefronts.
Marketers have a variety of tools available to them, but data analysis tools are undoubtedly some of the most essential. The benefits that marketers can reap from using these tools are incredibly valuable. When data analytics is implemented properly, every facet of your marketing strategy can be understood and optimized.
But what is data analytics? Let’s define this term quickly before moving on. Data analytics allows marketers to look at data sets and make decisions and strategies based on the data presented. Using raw data and the help of analysis software, they can find trends and patterns that allow them to optimize and perfect their marketing efforts. Here are some of the most important benefits that your team will get when they utilize in-depth data analytics:
More Effective Marketing Efforts - Your marketing campaigns need data analytics to guide them. Without analytics in the picture, all strategies are just shots in the dark based on general demographic information. With data analysis, you can see what campaigns customers are responding to and how you can better reach them.
More Strategic and Data-Driven Decisions - When your team has data at their fingertips, they can make more strategic, data-driven decisions. They can look at historical and real-time data to help them make changes to strategies on the fly. With data analysis, they’ll have a more complete understanding of the customer, allowing them to make the best decisions.
Better Customer Service and Satisfaction - Of course, understanding your customers better also means providing better service. When your marketers can share their findings with other departments, they’ll learn how to improve too. You can also better tailor your products and services to fit what customers are wanting, improving your customer satisfaction as well.Increased Sales - All of this culminates in an increase in sales and revenue. When your marketing efforts are humming along, your sales will hum along with them.
How to Use Data Analytics in Marketing
Now we understand what data analytics is and what benefits it can provide your business, but how do you use these analytics in marketing? Having your data analysis tools is one thing, but knowing how best to apply them is another. Here are some of the techniques you’ll want to consider to make the most out of your data analytics marketing tools.
Create Robust a Customer 360
Your Customer 360 allows you to see every interaction and engagement throughout the customer journey. With data analytics, you can create a more robust and actionable Customer 360. You’ll have a better understanding of their customer journey, what interactions are important, which stages engage customers most, and much more. Having a Customer 360 is essential if you want to create the best campaigns for your customers and make their customer journey as seamless as possible.
Personalize Your Customers’ Experiences
With all of the data you collect with data analysis tools, you’ll be able to personalize customer experiences like never before. It’s essential to personalize customer experiences if you want to stand out, otherwise, you’ll fall into the trap of being homogeneous with other businesses in your industry. Customers want to know that businesses are paying attention to their needs and addressing them. This means collecting more than just demographic data like age group and location. You also need to develop data on how your customers act and what kind of preferences they have when shopping.
Using historical and real-time data regarding customer interactions, your marketing team can understand how to communicate with them in a more customized way. This makes customers feel like you’re paying attention to them, instead of just wanting them to drive up your revenue.
Personalizing your marketing experience makes customers feel valued, which is crucial in modern businesses. You want to make sure you’re doing everything you can to show your customers that you want to deliver them the best product and experience.
Sync Your Marketing Strategies Across All Channels
In order to increase your brand awareness and reach every customer who could be potentially interested in your product or service, you need to be marketing across multiple channels. Using retail data, eCommerce, email marketing, Google ads, social media, and more can all contribute to higher sales and more customers. However, tracking and synchronizing all of these different channels is a different story. It’s important to have synergy across all of your marketing channels so you’re communicating a consistent message and maximizing your campaign potential.
Data analytics can help you understand the interaction across all of your different channels and help you make sure your strategies are all lined up. This ensures that all of your customers are getting a great experience regardless of how they find or interact with your brand.
This can also help you find which channels are resonating the most with customers. While it’s important to diversify your reach, it’s also important to focus your budget on campaigns that will actually reach your target audience. For instance, if you’re trying to market to the 18-24-year-old crowd, your social media efforts are likely going to get more traction than email marketing. Data analytics can show you this and prove it, helping you funnel more budget into social media and more specifically, funneling it into the social media platforms that get the most interactions.
Leverage Your Data to Inform Strategy and Predict Outcomes
When properly collected, transformed, and analyzed, your data can be used to make predictive models of business outcomes. As you learn from your data and your team understands how best to use their analytics tools, you’ll be able to inform your strategy and predict future outcomes. Data analytics will give you the power to implement strategies like:
Behavior Trends - Data analytics will give you insight into the behavior of customers, helping you learn how they act and interact with your campaigns. When you understand how a customer might interact with a future campaign, you can optimize it before even sending it out. This deep understanding of customer behavior is invaluable once you have it.
Dynamic Pricing Strategies - With data analytics helping you predict outcomes and inform strategy, it’s easier for you to implement dynamic pricing measures. Understanding your customer base on a deep level allows you to price your services in different ways based on customer needs, customer loyalty, and other metrics.
Predictive Analytics for Forecasting - When you collect massive amounts of raw data using your data analysis tools, your software will be able to read this data and use machine learning to help you understand it even better. The more your software and tools are able to learn about your customers, the more accurate the data and reports will be. This will allow you to implement predictive analytics and forecasts into your process, helping you grow your business as a result and get more customers in the long run.
Self-Service Analytics Gives Every Department Access to Insights
Data analytics are important, but they’re not always readily available to every member of your team. Typically, your marketing department will need to make a request to your data team if they want the data broken down and if they want reports that will help them create better strategies.
However, self-service analytics is a new solution that can take the pressure off data teams and put the power in the hands of all your employees. Self-service analytics allows your marketing team to get in-depth data reports in minutes. No more waiting to adjust and optimize strategies. Your marketing team can do everything at their pace and your data teams aren’t bogged down by requests.
Narrator Enables Next-Gen Marketing Analytics
If you’re looking for self-service analytics for your entire team, Narrator is the solution. Narrator gives your team access to self-service marketing analytics that your team can utilize in minutes, instead of waiting hours or days for data team requests.