Understanding Marketing Analytics

Understanding Marketing Analytics

Analytics is one particular field in Computer Science that always evolves into different forms. You will come across various forms of Analytics nowadays, and each plays a crucial role across different projects being carried out by a company. Marketing Analytics is one such type of analytics that is important to marketing experts, in particular. Marketers, generally speaking, focus on the number of leads that they can acquire from a number of channels, including the company's website. This happens to be a type of Web Analytics, and with quick technical advancements taking place in every location on the planet, it is not possible for web analytics alone to figure out the overall performance of the marketing campaigns. This led to the introduction of a new type of analytics, marketing analytics.

So what exactly is Marketing Analytics?

To put it simply, it is a type of data analytics that is intended to aid Marketers to manage as well as enhance their Marketing pursuits. The target here is to boost the efficiency of marketing procedures and also to enable Marketers to optimize their ROI by optimizing the procedures which create revenue for them.

This particular post will be discussing the significance of Marketing Analytics in addition to its benefits to businesses. It will likewise talk about 4 essential steps that can be taken by the companies to include them in their Marketing operations. It will also discuss the essential KPI (Key Performance Metrics) that will help to monitor the performance of the Marketing teams as well as the best practices used by the companies for using Marketing Analytics. Lastly, it will mention several limitations too.

Management Dashboards

Marketing analytics happens to be the process of gauging, managing as well as analyzing marketing performance for maximizing its efficiency plus enhancing return on investment (ROI). Comprehending Marketing analytics enables marketers to become more productive and also reduces squandered web marketing dollars.

Over and above the apparent sales plus lead generation applications, marketing analytics will be able to provide deep insights into consumer preferences as well as trends. In spite of these convincing benefits, most of the companies are not able to understand the benefits offered by marketing analytics. In accordance with a survey conducted by senior marketing professionals published in the Harvard Business Review, in excess of 80% of the participants were not satisfied with their capability of measuring marketing ROI."

Nevertheless, marketing analytics has become stronger and simpler to implement than ever with the introduction of search engines, paid search marketing, as well as powerful, innovative software products from WordStream.

The Significance of Marketing Analytics

Marketing analytics will enable you to keep track of campaigns along with their respective outcomes, allowing you to spend every dollar in an effective manner.

The significance of marketing analytics is apparent: in case the cost of something is more than what it returns, it will not be an effective long-term business approach. In a study conducted in 2008, it was found by the Lenskold Group that businesses making enhancements in their measurement plus ROI capabilities were very likely to report outgrowing rivals along with a greater degree of effectiveness in their marketing." In other words: Knowledge is power.

In search marketing particularly, a powerful marketing performance metric is offered the form of keywords that inform you precisely what is going on in the mind of your existing and prospective customers. The reality is that the most valuable long-term advantage of carrying out paid and natural search marketing is not progressive traffic to your site; it's actually the keyword information contained within every click that can be used to inform plus optimize other business functions.

Customer Surveys: By evaluating keyword frequency data, it is possible to infer the comparative priorities of contending interests.

Industry Trends: By tracking the comparative modification in keyword frequencies, it is possible to determine and also forecast trends in the behavior of the customer.

Customer Support: Comprehend where consumers are actually having difficulties the most and how to deploy support resources.

4 Crucial Steps for incorporating Marketing Analytics

After providing you with an understanding of the significance of Marketing Analytics, this particular section presents 4 essential steps which companies can use to include it in their systems.

1. Keeping track of Marketing Activities

These activities emphasize the existing trends of the Marketing routines of the business. It is essential to pay attention to different sources of inputs for measuring performance, and, consequently, it is crucial for the Marketing team to have a wide-angle perspective of the procedures and campaigns.

Organizations should attempt to use more precise metrics/KPIs like Comments, Conversion, and Shares, and reports should be portrayed in a way that they are able to communicate to the entire team instead of only a couple of individuals. The majority of the metrics happen to be people-centered in order that both existing and potential consumers are taken care of properly.

2. Keeping track of Competitors

Competitive Analysis plays a significant role in a Marketing team. Businesses should never compromise on this and should deal with it as a consistent metric in their evaluation when using Analytical strategies. Apart from the performance, it is also essential to analyze the efforts and investments of the competitors. The Competitive Analysis provides an additional dimension in Performance Research and allows the team to decide when and where to invest their resources and time and to plan those decisions appropriately.

3. Long-Term Evaluation of Marketing Pursuits

A Long-Term Evaluation of Marketing objective aids a team to be ready for any possible scenario. Businesses ought to determine their gains and deficits in a Long-Term way in order to combat any sort of hazard that might arise. This will help them to make alternative decisions on where their energy should be invested.

4. Prediction Abilities of the Marketing Analytics System

Marketing Analytics aids in predicting where to spend time as well as resources due to the fact it values investments and efforts over a short-term period of success of a particular Marketing Channel. It will be possible for the Marketing team to decide where and when to make use of each channel by treating every single channel equally. This will help to prioritize the subsequent quarter’s investments better.

Some of the best dashboards examples

We have been talking about datasets and dashboards for a long since we started the discussion. So, now let's dive deeper into the best data dashboards that are designed oriented to serve various business sectors and industries.


Sales Revenue

We can define Sales Revenue as the income generated by a company by means of its product or services. It happens to be amongst the most important KPIs due to the fact that companies ought to track it on a regular basis to make sure that their sales are going to exceed the expenses incurred by them via their Marketing campaigns.


CPC (Cost Per Click)

Once a prospective client shows interest in a particular product or service provided by a business, that consumer turns out to be a "lead." CPC can be defined as the connection between the expenses incurred by the company for converting a consumer into a lead. Statistically, we calculate CPC by dividing the total money which the company spends for operating a Marketing campaign by the number of times a particular click took place.


Online Marketing ROI

This is going to depend on the connection between Analytics and Reporting. It helps to compute the profit or loss generated by a business based on its Marketing campaigns, regarding the money invested by the business in those campaigns. It enables the Marketers to comprehend whether the investments made by them are worth the Marketing campaigns. The capability of evaluating website traffic and converting it to valuable reports happens to be an essential KPI for figuring out the company’s success.


Form Conversion Rates

These can be defined as the rates at which traffic is diverted to the website of a company by the content created by the Marketing team. This is likewise referred to as Content Marketing which must be optimized on a regular basis. It will be possible for the companies to make effective decisions once they are able to understand the trends in conversion rates.


Social Media Reach

Social Media Reach can be defined as the KPI which helps to measure the number of leads that can be obtained by a company via its social media pages. It will be feasible for the marketing team to analyze which particular platform is effective for their business in case to understand how each social media network actually functions. This will help them to enhance the techniques of Social Media Marketing.


COCA (Cost of Customer Acquisition)

The Cost of Customer Acquisition happens to be the cost of wages involved in persuading a client to purchase the service or product of the company. Mathematically, it is possible to calculate COCA by dividing the entire Marketing investment by the number of consumers obtained.


Website Traffic

It actually represents the number of individuals visiting the website of the company. These clients have the potential to become prospective leads. Website Traffic implies getting to know these consumers. It will allow you to comprehend what consumers are searching for and what services and products they are attracted to.



A prospective customer is going to become a lead once he or she is interested in the service offered by the company. Your chances of getting more sales will be increased by having more Leads, which will help you to generate more revenue. Generally speaking, you will come across 2 types of leads.

MQL (Marketing Qualified Lead): This is a lead that has more possibilities of becoming a customer, unlike other leads. Although they have decided that they are engaged deeply with the product/service of the company, they have not yet turned out to be fully-fledged consumers.

SQL (Sales Qualified Lead): This happens to be a leader that has been accepted by the Sales team for having a direct sales follow-up. SQL's usually become customers on most occasions.


Customer LTV (Lifetime Value)

Customer LTV signifies the cost that every single customer has to the company. It allows you to comprehend the worth of your customers to you. It is a vital KPI since it aids in figuring out the ROI of the company and also planning the future goals of the business. It is possible to calculate LTV by multiplying revenue generated by the company, the total margin, plus the average of any repeated purchase made by the customer.


CTR (Click-Through-Rate)

CTR is actually a KPI measuring the number of clicks received by the advertisers on their ads. It is important to have a high CTR since it affects the Quality Score directly while also minimizing the expenses incurred by you once somebody clicks your ad.


Marketing Revenue Attribution

This can be defined as the method by which the revenue generated by the consumers can be matched onto a particular Marketing output. It aids in enhancing the ROI, optimizing the work, and adding all the pertinent information to the appropriate targets.


CPL (Cost Per Lead)

CPL is actually a Marketing pricing model in which case, a fixed price is paid by the advertisers for every single lead obtained by them. Companies selling high-value products usually make use of CPL in the E-Commerce industry at present. It is possible to calculate CPL by dividing the money spent on ads by how many times a lead had been generated.

In general, it will be possible for the companies to convert customers into leads by following all these KPIs, which will help to boost sales as well as the performance of their products or services.

Benefits of dashboards in Marketing Analysis

In this section, we have mentioned some limitations which can be experienced by Marketing Analytics in an organization. On some occasions, it can misinterpret information which can result in fabricated decisions. Below, we have highlighted some of the limitations.

Misidentifying Marketing requirements: In some cases, Analytics can underestimate or overestimate the performance of your competition in the market. It can likewise misidentify the requirements of the company.

Assessing Marketing Growth sans a Market Share: It will be possible to get an idea of the range of opportunities that you can have by Market Analysis. On some occasions, you will not be pleased by this analysis, and you might squander your opportunity. Consequently, it is imperative to have an appropriate Market Share with the analysis for surviving in the market.

Improper Data Interpretation: Even though it aids in assessing information by collecting data from a number of sources, interpreting the information is an entirely different process. It is imperative to work some time for interpreting the data since you are going to be on the back foot in case the data is misinterpreted by you.

Final Words

This above-mentioned article provided an in-depth analysis of Marketing Analytics as well as its significance to various companies. It discussed 4 essential steps used by businesses for incorporating Analytics into their Marketing strategies and also mentioned the well-known KPIs which can be used by businesses for improving their Marketing Performance. It likewise discussed the best practices that can be used by companies for utilizing Analytics to boost their efficiency, along with a few limitations as well. In general, Marketing Analytics provides a 360-degree view of any company which runs all the business operations. It helps to optimize and also prioritize time as well as resources such that it is possible for a business to make effective decisions for enhancing its performance.