Of any area of marketing – or even business in general –analytics is rapidly growing in importance and value. Because of this, there will be ever greater use of marketing analytics, as well as greater variety in types of analysis. Here are some essential trends and action items for 2014:
1. Action = Advantage
The businesses that actively take insights from analytics – and turn them into action – are the ones that will prosper and increasingly dominate their industries. Companies that have long turned analytics into action – such as Netflix, Salesforce, and eHarmony – are market leaders. And for companies that take action, the increasing number of marketing and optimization tools offers increasing opportunity. Companies that only crunch numbers – and take little or no action – will do so at their own peril.
2. Focus on Enterprise ROI
It’s essential to track campaign ROI, so that you continuously optimize campaigns for higher return. But the businesses that will benefit most from marketing analytics are those that will increasingly focus on enterprise-wide ROI, rather than the ROI of isolated campaigns. That’s largely driven by the exponential increase in multichannel marketing. Where in the 1960s there were 5 marketing channels, today they are 60+.
3. Targeted Outreach
Generally speaking, your competitors have access to the same tools and techniques you have. They’re doing the same thing, so you need to do something better. Vendors are increasingly offering a greater number of marketing automation systems, with ever greater sophistication. Combined with analytics, this enables forward-thinking business to increasingly fine-target their marketing outreach. By targeting for higher conversion rate, businesses will be able to increase conversion rate and ROI.
4. Who to Target
One key benefit of marketing analytics is increased intelligence on who to contact.
By doing this, you can better ensure you’re only contacting people interested in your products or who might become a customer. It can take a lot of time, money and effort to cultivate a customer; segmented outreach helps ensure your resources are well spent.
5. How to Contact
Marketing analytics also is increasingly able to reveal – customer by customer – the best way to reach out to each customer or lead. For example, whereas some might respond to email, others might require direct mail. Analytics enables smarter decisions regarding marketing media, and this knowledge cuts costs – and increases response rates.
6. Individualized Product Offers
Companies that mine their marketing analytics know their customers better. This enables them to finely target products most likely to interest each customer, and move away from a scattershot approach. For example, analytics might reveal a particular customer might need a jacket, but not shoes. Forward-thinking companies can also use this to improve satisfaction with existing purchases. An example is Netflix, which broke out single accounts into multiple profiles, to better serve subsets.
7. Predicted Outcome
By better targeting outreach in these ways, data-driven businesses will be increasingly able to predict the outcome of communication. In turn, you’re more likely to have a successful outreach with a customer or lead.
In conclusion, businesses that best adopt these techniques are better poised for growth this year and beyond. Companies must strive to be the best at capturing data, doing marketing analytics, and taking action on data conclusions. These are the companies that will lead, profit and prosper in the era of Big Data and marketing analytics.