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Marketing analytics comprises the processes and technologies that enable marketers to

evaluate the success of their marketing initiatives by measuring performance (e.g., blogging
versus social media versus channel communications) using important business metrics,
such as ROI, marketing attribution and overall marketing effectiveness. In other words, it
tells you how your marketing programs are really performing.
Marketing analytics gathers data from across all marketing channels and
consolidates it into a common marketing view. From this common view, you
can extract analytical results that can provide invaluable assistance in
driving your marketing efforts forward.

Why marketing analytics is important
Over the years, as businesses expanded into new marketing categories, new technologies were
adopted to support them. Because each new technology was typically deployed in isolation, the
result was a hodgepodge of disconnected data environments.
Consequently, marketers often make decisions based on data from individual channels (website
metrics, for example), not taking into account the entire marketing picture. Social media data
alone is not enough. Web analytics data alone is not enough. And tools that look at just a
snapshot in time for a single channel are woefully inadequate. Marketing analytics, by contrast,
considers all marketing efforts across all channels over a span of time – which is essential for
sound decision making and effective, efficient program execution.

What you can do with marketing analytics
With marketing analytics, you can answer questions like these:

How are our marketing initiatives performing today? How about in the long run? What
can we do to improve them?

How do our marketing activities compare with our competitors’? Where are they
spending their time and money? Are they using channels that we aren’t using?

What should we do next? Are our marketing resources properly allocated? Are we
devoting time and money to the right channels? How should we prioritize our
investments for next year?

Three steps to marketing analytics success
To reap the greatest rewards from marketing analytics, follow these three steps:

and what are they saying?  Predicting and/or influencing the future. it’s important to know where you stand along the analytic spectrum. After all. . For example. and fill in the gaps over time as new needs arise. Start where your needs are greatest. a marketing organization may choose to plan and budget for adding analytic capabilities that can fill that particular gap. you probably don’t have all your bases covered. that’s easy. Assessing your current analytic capabilities is a good next step. Assess your analytic capabilities. one that combines techniques for:  Reporting on the past. if you’re not quite sure where to start. Marketing analytics enables you to determine how your marketing initiatives are performing right now by answering questions like: How are our customers engaging with us? Which channels do our most profitable customers prefer? Who is talking about our brand on social media sites. and fill in the gaps Marketing organizations have access to a lot of different analytic capabilities in support of various marketing goals. you need an analytic assortment that is balanced – that is. but if you’re like most. and fill in the gaps. 3. By using marketing analytics to report on the past. Act on what you learn. Use a balanced assortment of analytic techniques.1. well. you can answer such questions as: Which campaign elements generated the most revenue last quarter? How did email campaign A perform against direct mail campaign B? How many leads did we generate from blog post C versus social media campaign D?  Analyzing the present. a marketing organization may already be collecting data from online and POS transactions. so you can identify where the gaps are and start developing a strategy for filling them in. and the technology for converting unstructured data into actual insights that marketers can use exists today. Marketing analytics can also deliver datadriven predictions that you can use to influence the future by answering such questions as: How can we turn short-term wins into loyalty and ongoing engagement? How will adding 10 more sales people in under-performing regions affect revenue? Which cities should we target next using our current portfolio? Assess your analytic capabilities. but what about all the unstructured information from social media sources or callcenter logs? Such sources are a gold mine of information. Use a balanced assortment of analytic techniques To get the most benefit from marketing analytics. As such. 2. Of course.

dependent and independent.  Optimizing processes. These variables. In a constant process of testing and learning. For example. analytics is a powerful tool which can be used to arrive at an informed decision after investigating and “making sense” of all the unstructured data available to the marketer. By more effectively managing leads and being able to tie those leads to sales – which is known as closed-loop marketing analytics – you can see which specific marketing initiatives are contributing to your bottom line. can cause a lot of confusion for marketers. then what is the point? Applied holistically. It all sounds good on paper – In the real world.  Adjusting strategies and tactics as needed. The need then arises for tools to help them with effective decision making capabilities – actionable intelligence. To define marketing analytics. met and unmet. building trust. when or if things needed to change. but you do nothing with that insight. marketing analytics can lead to better lead nurturing and management. it’s a win-win situation for both the marketer and the customer with sales targets being met and the customers getting the product/service of their choice. there are so many obstacles towards implementing these concepts such as – defining the market. you would have no idea what was working and what wasn’t. By the same token. more successful marketing by enabling you to close the loop as it relates to your marketing efforts and investments. Marketers need to establish a market for these products/services. marketing analytics enables you to improve your overall marketing program performance by. or how. etc. Without the ability to test and evaluate the success of your marketing programs. Analytics – With so many considerations to make an effective decision. which leads to more revenue and greater profitability. This way. marketing analytics allows for better. let’s take a look at these two terms separately – Marketing – The real meaning of marketing is to bring products/services that customers value depending on their needs and wants. communication channels. build awareness (and the need to buy) among customers and build relationships with them after making the sales. for example:  Identifying channel deficiencies. if you use marketing analytics to evaluate success. is what they really need.Act on what you learn There is absolutely no real value in all the information marketing analytics can give you – unless you act on it. The key is to find insightful information .

we get a specific. If we combine these two terms. mine.from all possible data (qualitative and quantitative). campaign tracking and PR which would benefit from analytical rigor. offsite metrics. sociology. and churn/retention analysis. Emerging offerings within marketing analytics include marketing measurement. content creation. With regular collaboration between marketers and analysts in outsourcing firms. As a function. service providers in this space are working in partnership with sales and marketing departments worldwide to fine-tune marketing analytics as a viable and long-term process. we can expect a clearer. Importance of Marketing Analytics Marketing analytics is the measurement and optimization of your marketing activities. Marketing analytics goes beyond on-site indicators and leans on other tools. and communications. An analyst in this field needs to have knowledge in many areas such as statistics. and the engagement in real life that resulted from those efforts? Marketing analytics is the act of looking past mere website results. and even offline efforts. these capabilities cannot be acquired or mastered over a short period of time. but don't go any further than that. "How did that marketing campaign really go?" . there are several marketing activities such as web analytics. But what about analyzing the way you executed that campaign? What about the time of day you did things. or the vehicles you used? What about the conversations offsite. It takes a whole-picture approach to the measurement of your marketing. coupled with extensive market information. which brings in a small amount of uncertainty. Being able to filter. Rather than focusing only on your site’s performance like you do with web analytics. looking at the outcome of their efforts as it relates to site performance. There are elements of judgment and circumstance in this decision making process. niche service aimed at investigating facts and data to arrive at realistic and optimal marketing decisions. more structured form of marketing analytics in the near future. As a practice. To meet the growing needs from the industry. cross-sell/upsell analysis. and adjust them accordingly. social media. The concept seems simple — and somewhat assumed — but many marketers spend hours in web analytics tools like Google Analytics and Omniture. present and synthesize data is a must for the end-reader to be able to act upon the findings. you focus on how your marketing efforts are performing. and asking yourself. psychology. loyalty customer lifetime modeling.

we should also be reporting them in a way that speaks to the entire team and the company at large. Re-prioritizing how you spend your time. 1. . and shares? In addition to reporting more metrics. Like many new approaches to analytics. you may find yourself focusing too narrowly on your site's results. There will need to be some upfront explanation and defining. This is all about how are you performing right now. If you want to change how your company invests their marketing resources. With marketing analytics. comments. there is a learning curve. time on site. How are your marketing activities performing? This is the piece that most marketers have down pat. and the resources you invest in channels and efforts are critical steps to achieving marketing team success. you'll take a wide angle view. and decide how we might want to invest moving forward. How are your current efforts paying off? If you focus solely on web analytics.Marketing analytics helps us see how everything plays off each other. Rather than simply reporting your visitor counts. what about reporting more? What about the results that happened offsite? What about the less traditional KPI-driven results like conversations. We wanted to break down the parts of marketing analytics and leave you with some kick-off questions to get started with. and conversions. and to go beyond cookie cutter KPIs and report formats. you need to make a strong case for analyzing what is happening beyond your site. how you build out your team.

What are they testing? What are they investing in? This requires we jump out of our software and tools and become observers.Here are a few examples of common web analytics performance KPIs (on the left) and then a contrasting list of marketing analytics KPIs (on the right). compile our own reports. but requires us to use many tools. We find more of the metrics we care about tend to be people-centered: how are we doing our best job for both current visitors/customers and for future ones? How are our fans. In addition to performance. but so many of us fail to carve out dedicated time for it. 2. Are they engaging more on certain networks? Are they pushing more money into content marketing? Are they investing heavily into channels that you may or may not be in? . Marketing analytics assumes that competitive research is an ongoing. and followers engaging with us? Who's talking about our brand on other sites? We track metrics that help us use our time in the most valuable way possible. friends. Where are your competitors investing time and resources? Competitive analysis. you so funny. Marketing analytics goes beyond traditional website KPIs. It should be a constant metric we are aware of — and one we know as well as we do our own. and we work to know exactly how our marketing activities are doing for us. It's one of those things that all marketers know is important. we need to be aware of where they are putting their time. and work to tell a story with the data. fluid effort. It shouldn't be something we do at the beginning of a project or when we take on a new client. You can see how the list doesn't just grow in size.

or your site's performance only. and possibly pull back from others. loyalty.) — that sounds way better.This competitive layer adds color to your performance research. but too often we stop at that. If you take the time up front to map that movement out. 3. Scary. Now imagine planning a marketing roadmap around how each channel has done over time. This helps you invest in the right efforts. engagement. Imagine planning your marketing roadmap around yesterday's results only. How about the momentum of those gains and losses? What about the long-term quality of those gains and losses? How do those short-term wins turn into loyalty and ongoing engagement? Marketing analytics focuses more on the overall performance of our efforts. etc. where they stand. and the many ways we can single them out to improve them. and how your specific efforts returned across all the objectives you care about (money. Now you know where you stand. and month over month. you will make more holistic decisions about where to invest your energy. How do your marketing activities perform in the long-term? We understand the importance of knowing if we have improved week over week. Here are some great additional questions to ask when working to understand how your activities are returning: . There are so many other things to be watching closely when tracking success. and you have a better sense of where things are going. huh? We agree.

highly caffeinated marketers make is failing to evangelize the results of our efforts.4. but this is time well spent. and tips on how to avoid them. but what about time spent on researching new tools." you can talk about the specific campaigns. It takes time. you need to be testing both new channels and new tools to track their success — then set aside time to dive into the data. worse yet. we receive weekly reports sent to us but we fail to interpret the data for valuable insights. Here are a few we've found. Show them which ones are working. Set it and forget it dilemma: We've all done it. you need to be sharing how things are going on a regular basis. and because of it you can make your next move a fully informed one. and efforts. This is most commonly applied in performance marketing. This is most easily applied when it comes to staffing and budget spend. A key piece to successful marketing analytics is to be proactive and constantly pushing the limits on the process behind your decisions. and prioritizing next quarter’s investments accordingly. Common mistakes with Marketing Analytics There are quite a few common challenges people face when trying to invest in marketing analytics. we should look at it as every marketer's responsibility to know how their efforts are returning and what to do next. You hear about this new cool analytics tool. Marketers are strapped for time. Failing to evangelize the wins and losses: One of the most common mistakes we fast-moving. To make marketing analytics part of your team's culture and place it in the forefront of your company's mind. It should be a joint conversation. Marketing analytics expects more. Thinking it’s a CMO's job: A common misconception around deciding how to grow a marketing program is to think it's solely the CMO's job to do so. new processes. you often get a very disconnected roadmap. but all of our marketing efforts demand the same closing of the loop. . You set it up and start collecting data. but you never quite circle back to see how things are going and what it's telling you. Instead. Marketing analytics can help us close the loop as it relates to our marketing efforts and investments. It's the "set it and forget it" dilemma. How does your marketing analytics data inform your next decision? We all understand the premise that we need to invest where things are returning well. creating new tests. and which ones need work. Instead of assuming some channels always work — or that some channels are never going to work — you should be testing where and how you spend your time. To do it well. content pieces. This should back out to a roadmap for your channel or job responsibilities. If you leave it to the top of the organization. and designs? Are you giving your time to the right channels? Marketing analytics helps us get to the bottom of that. Or. Rather than tell them you "use inbound marketing to attract community members.

Click Through is one of the marketing analytics definitions that can also be used to measure effectiveness of Call-To-Action buttons or links on your website. monitoring. Is there something in your email content. Cost per Click Used to measure the cost of getting a visitor to your website through one of the paid search ads programs like Google's Adwords or Bing's Ad Center. The answer to that depends on your average sale. Remember the job of an email or CTA is to get your buyer to take an action. For email. and how successful you are at converting site traffic to customers. that would be the number of delivered emails. Opt-Out Rate This is the percentage of your email recipients that click on the opt-out link. It's a starting point. not the finish. profit margin. This measures the ability of your marketing to generate an action among the recipients. I'd argue you should include your time spent as well. It's simply the number of times a link has been clicked divided by the number of views it had. message or offer that is irritating your customers enough for them to opt out? Frequency can also be an issue with both too often and surprisingly not often enough being a problem. Posting. With the growth of social media. The real question is what is a visit worth to your business. and . Just like it sounds it's what you pay per action. Watch this one closely. It's one of the marketing analytics definitions that are an early warning for problems ahead.Ask for ideas and feedback. (more later) Cost per Customer or Acquisition Here you're starting to get closer to your bottom line. calculated against how many new customers can be attributed to the campaign. If you're getting an opt-out rate of over 1% it's time to rethink your approach. they will be more invested in seeing it succeed. Characteristics of marketing analytics Click Through Typically used in an email campaign. in this case a click. By getting them involved. Most likely visit your website or landing page on your site. How much money did you spend to acquire a new customer? This is traditionally calculated using the marketing spend of a campaign. What's a good number to shoot for? That depends on your business and customer base.

However. by monitoring measurements like these marketing analytics definitions you'll spend more of your time looking need-to-know decision points and less just rows of data.engaging may not be external cost activities. . but they certainly are time intensive. Bottom-line. Your conversion goal may be more ecommerce related and you're looking to convert the visitor to an initial purchase or maybe upgrade of the product or service they're currently using. What is the value of your time? Is the customer acquisition and revenue you're getting in return worth it? Conversion Conversion rate is a pretty broad term and can be used in multiple scenarios. generally it involves your prospect converting after some type of marketing contact to an action that you have set as a goal. Your goal might be to convert a suspect to a prospect by getting them to click on one of your links or call-to-action buttons on your site that takes them to a landing page where they can request information.