To say analytics are important in marketing would be a huge understatement. In fact, we spent a lot of time using them to improve our strategy and gain competitive advantages.
Analytics help us to personalise our campaigns to the right users and market segments, and boost them to the right places. This opens up opportunities and helps to provide our clients with a long-term competitive advantage.
The catch? We can only do this if we know and understand our audience to a good level in the first place! To do this, we need to look at our data. The metrics we use tend to fall within these categories:
Brand equity metrics - The value of our client’s brand and the impact of its recognition - from customers through to business shareholders.
Customer value metrics - The measure of different customer audience segments for targeting and post-campaign measurement.
Word of mouth and referral value - We use this to analyse ‘valuable’ customers and the inbound links we’re generating and receiving through our marketing channels.
Retention and acquisition - We look at the trade-offs between investment on new customers versus targeting returning or lapsed customers.
Cross-buying and up-buying - Metrics which represent customer behaviour and the main drivers of buying behaviour.
Multi-channel shopping - Metrics and data which help us look at the impact of campaigns over different buying channels.
Product return - We analyse ‘Customer Lifetime Value’ (CLV) and the relationships we could start to develop with our audience.
We then use a framework to review our campaigns over time, often monthly, which gives each piece of data an individual role in achieving our objectives. This is completely bespoke to each client or marketing campaign.
Understand your audience
Firstly, for our campaigns to have a positive impact, we must be able to understand our target audience. If we understand the customer journey and their clickstream (their journey from seeing our online messages through to making a conversion on our websites), this will help us target each step the audience takes - from awareness to the actions we want them to take.
Metrics are used to find an interaction between the brand and the consumer. Here we can look at affinity categories, audience interests and demographics to find out who our actual audience is, and not just the one we think it could be.
It’s common for us to develop user personas to identify the different types of of users that use our products and services, websites and brands.
Engage with your audience
Once we know who the actual audience is, we can begin to understand about how to interact with them. At the end of the day, an engaged audience is what we need; the messages we send out can be circulated in our audience’s networks.
For example, social media helps us create a positive brand image, whilst forging relationships with potential new customers. If we understand our audience, this is much easier!
Once we have meaningful data, we need to figure out how to engage with audiences, and how to encourage the audience to engage with the brands. Through the use of metrics such as bounce rate, pages per session and time spent on site, we can fine tune our marketing strategy.
Some marketers focus on reviewing content and customer experience, whilst social media marketers may focus more on engagement metrics such as likes, shares and comments over any other metric category.
Through the clever use of analytics, we can create highly targeted campaigns which get the right messages out to the right people. Measuring metrics following the campaigns helps us to fine-tune our marketing and get better results each time.