Digital marketing and analytics go hand in hand. The focus is on the influence digital marketing has on business growth and development.
Marketers have indeed been analyzing their methods and techniques since the mid-19th century, but as of now, data analytics bears no resemblance to those early marketing efforts made to maximize profits. Data analytics models, propelled by digital technology, do measure the value of every customer action and touch point across multiple channels as well as devices. Many marketing professionals do make their decisions based on data, making use of advanced analytic tools in order to evaluate digital marketing campaigns at every step of the customer experience.
The future of digital strategy belongs to those who happen to know how to use such sophisticated tools to gain valuable marketing insights.
Data Analytics in Digital Marketing—What Is It?
In marketing, data analytics is considered to be the practice of gathering and analyzing data from several digital sources in order to gain actionable insights into a company’s digital marketing strategies.
Digital marketing analytics tools can be used to inspire new approaches, minimize churn rates (when customers stop interacting with a company), and increase existing customer value by creating a personalized experience.
Data analytics does help businesses be more efficient by removing the guesswork from marketing strategies as well as generating optimal value from a company’s marketing budget.
What Are the Three Models of Marketing Analytics?
To plan, manage, as well as optimize marketing campaigns, professional marketers do make use of three types of analytic models that influence digital marketing.
- Descriptive: Historical data is collected from earlier campaigns, and this sort of information is used to provide insight in order to help plan strategies for future campaigns.
- Predictive: These data analytics models do use insights from prior marketing campaigns in order to try to predict customers’ behavior so that the company can develop a better-informed, more targeted campaign.
- Prescriptive: These models do gather data from all available touchpoints, analyzing the impact of each company initiative as well as customer interaction, in order to help the organization create highly targeted campaigns that do influence customer behavior.
- Together, such analytic models do form a complete picture of the effectiveness of marketing campaigns and how each company can more efficiently achieve its desired results.
Where does the Data Come From?
The raw data for digital analytics is derived from several different sources, and it can be overwhelming if a company lacks the in-house expertise to use it effectively.
Put together, these analytic models do form a complete picture of the effectiveness of marketing campaigns and how each company can achieve its desired results more efficiently.
How Marketing Analytics is Used?
Marketers can use data analytics in order to make sense of a large amount of customer data and make use of these insights to guide their product strategy, brand, as well as marketing campaigns.
By making use of sophisticated data analytics techniques, companies can no doubt be able to better understand their market as well as their customers, which can lead to effective digital marketing tactics, more personalized customer interactions, greater customer satisfaction, higher efficiency, and, of course, bigger profits.
Understand customer behavior
To be able to acquire customers, a person needs to be able to understand and also predict customer behavior patterns, as this enables them to adjust their marketing as well as advertising campaigns to respond to their needs.
Developing new product features, new strategies, and new revenue streams
With current data about consumer preferences, a company can, of course, safely experiment with customer acquisition. It might rather create a new marketing strategy, enhance product features, or even develop an entirely new product based on what the data does highlight about customer needs. This could indeed pave the way for new revenue streams.
Digital marketing is gaining ground as businesses are eager to flourish and sell their products and services at a good price.