At the heart of any successful business is a solid marketing strategy but without effective marketing analytics a business is unlikely to achieve its full potential.
Marketing analytics is not just about Website hits and Social Media statistics but the measurement of marketing activities. When done well, analytics provides insights to help business owners and management teams answer key questions so they make the right decisions.
The key marketing questions are:
- What segments of the market are most responsive?
- What messages work best?
- When is the best time to promote?
- What are the best products and services to focus on?
- What marketing tactics give the business the biggest return on investment?
The only way to get these answers is to record your marketing activities. You need to record where customers come from, what messages they responded to and what products they ended up buying. From this information, it’s possible to complete a return on investment calculation.
Do you know what does it cost you to win a new customer? This is called the cost of acquisition.
Would it make commercial sense to increase the budget to win a new customer? If the lifetime value of a customer is sufficient you can maybe able to justify spending more than the competition to win a new customer. This will give you a competitive advantage because you will be able to stand out with your marketing.
What types of customer respond best to your marketing communications?
Think about the demographics on your market and segment your new clients with age, size, gender, marital status, income, education and occupation.
Systems will help you keep records to answer these questions. The most important system is a Customer Relationship Management (CRM) system. This is as important to marketing management as accounting software is to financial management.
But, to get a true picture of marketing, sales management needs to be consistent. Every enquiry needs to be dealt with in an efficiently and effectively manner otherwise the marketing analytics can be distorted. This is why it’s vital sales and marketing functions work closely together.
If you’d like to know more about marketing management and analytics get in touch for a free meeting.
Image from Flickr by Ken Teegardin.