Marketing analytics is the practice of measuring, managing and analyzing marketing performance to maximize its effectiveness and optimize return on investment (ROI). Understanding marketing analytics allows marketers to be more efficient at their jobs and minimize wasted web marketing dollars.
In a recent Forbes article, senior marketers indicated they are using marketing analytics less than in very recent years. Their reasoning is simple: they don’t feel qualified or properly informed to properly analyze and make key decisions related to the data they receive.
“Marketers cited a number of factors that prevent them from using analytic… Almost one third reported that the biggest factor is the lack of processes or tools to measure success through analytics. This suggests that companies have not thought through how analytics will enter the decision making process or how analytics will help marketers understand the effectiveness of their actions. The second largest barrier is that firms lack people who can span the world of marketing analytics and marketing practice. This divide between rigor and relevance requires boundary spanners that are either analytical managers or analysts with managerial insight. Either way, there must be human capital that can connect the dots between marketing practice and analytics. A prior CMO Survey found that only 3.4% of senior marketers believe they have the right talent to play this role.” –Forbes February 2017
This is where a good CMO can come in and provide leadership, structure, and focus to analyzing data and marketing performance, and directing the path needed to help marketers use the information effectively.
Areas in which analytics come in to play include social media, website data, CRM analytics, and e-mail campaigns. The more information gleaned from each resource, when analyzed properly using strong marketing automation tools, presents a strong picture of marketing ROI and helps marketing make course-correction decisions as needed.