Importance of Marketing Data Analysis

What is marketing data analysis?

It’s a technique where you gather all the data about your company and the market, focus on internal and external aspects, take the corporate strengths and weaknesses into account, and then develop a marketing strategy. It provides a clear image of where your business sits in the market in relation to the rivals. It even displays the effectiveness of your present marketing strategies as well as prior accomplishments and outcomes. Marketing data analysis compiles data from various marketing channels into a single, unified marketing view. Thus, it provides a comprehensive image of your company.

Let’s  check out  details of why analyzing marketing data is important:

1. Understand your clients: Finding out what your customers desire, what appeals to them, what products they are purchasing right now and why, which advertising are generating conversions and which are ignored, is helpful. It helps to develop two things. The first step is to give the customers the precise product or service, and the second is to create a plan for that specific product.

2. Know your competitors: It helps  to seek out  out who your real competitors are, what  they’re  providing, how are they capturing the market and the way much market share do they capture.  this may help to analyze the risks in entering the market that may arise in future.

3. Product Intelligence: It includes having a deep knowledge about your own brand’s products and see how  they’re  performing in the market.  This will be done by observing the behavior of customers,  lecture  consumers, collecting surveys and having polls. This may  help to better position their products and have the competitive advantage.

4. Production management:  Once you  know how your product is performing only then you will be able to predict the next year’s production.  This may  help to prevent stock out and excess inventory.

5. Profitability  within the market: Marketing analyses helps to understand if the market is showing signs of return on investment because then only you will be encouraged to invest heavily. Similarly, if the market isn’t profitable then  you’ll  not waste much of your time and resources.

6. Helps to spot touch points: Marketing analysis gives an idea of the buyer’s journey. When, where  and the way  they get in contact with the product. This may help to understand if our consumers are facing any issue in accessibility or if there is any process that could be simplified or improved.

7. Enhance digital performance: Utilizing the right keywords and phrases for your customers will help you improve the quality of your website. Marketing analysis provides information on how customers search for products and services, the exact words or phrases they use, and the target markets for the keywords that direct traffic to our website.

8. Digital campaigns: Marketing analysis gives  a radical  understanding of which campaign worked and why. So, we’ll be  ready to  apply that knowledge to future campaigns for increased ROI.

To summarize the importance of analyzing marketing data is that it gives us an understanding of the market and customers,  the worth  proposition of the product being offered, consumer needs for the company’s product and price settings, the promotional ad or message to be used,  the well-liked  channel of distribution and at last, what opportunities exist within the market.

Detailed marketing analysis gives huge benefits to the corporate in many aspects.

1. Identify prospective customers:  once we  evaluate historical data and new opportunities in the market,  we will  identify prospective customers and market other products that the company might be interested in based on their audience. As a result,  we will  upsell and cross-sell more effectively with predictive analysis.

2. Better position your brand: Now since we are  aware of  the features that matter the most for the consumers and that can differentiate us from the competitors, so by auditing Google Analytics,  we will get better insight into the positioning of our brand.

3. Increase brand awareness and brand engagement: Marketing team can develop a recognizable phrase, logo, or other  sorts of  recall using digital platforms.  This will  have a significant impact on brand awareness. Even business can develop customer-specific content that enhances customer engagement.

4. Right marketing strategy  to save lots of both cost and time. The marketing data  are often used to analyze lifetime value, cost of acquisition for the purchasers and churn rate. This helps in fixing  the marketing budget and improve the marketing KPI’s. These important insights  also can be used to build financial forecast for the business. The return on adds spend may be a  key parameter to analyze and decide the amount to be spent to achieve breakeven.

5. An integrated view of your marketing data: Marketing teams put different efforts across  plenty of  different platforms and teams like marketing, distribution and pricing. Combining and cross-analyzing data from  all of your  efforts will enable more sophisticated analytics involving things like attribution and ROI.

6. Better segmentation of existing customers: Every segment has their own background, preferences, and demographic profile. Marketing analysis allows you to group similar prospects together  consistent with  the factors you deem most important. This may  eventually help to devise targeted strategies that will resonate with each individual segment’s preferences. By chatting with  customers the way they want to be spoken to, you’ll increase your marketing success and reduce wasted efforts.

7. Better digital presence and campaigns

8. Reduce cost per acquisition (CPA)