In our everyday life, people come across various advertisements/promotions for N number of products as well as services on social media applications such as Instagram, Facebook, YouTube and so on. These promotions can be for things that they might have across or even for the things they don’t know or don’t think they’ll be needing yet. What are these promotions for? Why are we seeing these? People tend to get these and many more questions when seeing such promotions. Well the answer for all of their questions is “Marketing Analytics”.
In layman language, marketing analytics means analysing and using data in order to create effective and efficient marketing techniques. In the modern digital age, this data can be collected from anywhere, from our online purchases, our transaction history and even from one simple click we made on websites while surfing through Amazon, eBay, etc.
Why are organisations investing more and more into marketing analytics?
The one and only reason is data. When an organisation, lets say a major consumer products company Unilever, needs to create promotional offers for a new or existing product, broadcast it onto which platform, whom do they need to show it to, they will require the past data as it will be available to provide them with insights about the above mentioned and many more parameters.
What kind of insights are we talking about?
Consumer preferences & upcoming trends –
By analysing the data, businesses can find out the pattern in the consumer buying behaviour and know if there is any emerging trend among consumers and their choice of products.
Product performance –
It is really important for businesses to know whether their products/services are doing good in the market or are they just there. By comparing and analysing the performance with competitors, one can come up with a much better strategy.
Channel effectiveness –
By understanding the performance of the channels through which customers get to know about the product can help in eliminating ineffective channels and businesses can invest in sources with best return on investment (ROI).
Conclusion –
Marketing analytics as we have read above can help businesses in gaining a bigger customer base and also helps in reaching out to the potential customers who can find the products/services beneficial for them. Without it, there is no way of finding the best communication channel between business and consumers.
