The chief marketing officer of most businesses has one objective—to get the company’s products into the hands of as many people as possible. When you are trying to get your products and services into the hands of people, you have to understand what those people want, which means being aware of market trends and consumer behaviors.
In order to achieve these objectives and become better at your job, it would behoove you to invest in marketing analytics software and figure out how to use it effectively in your organization.
If you’re a Chief Marketing Officer, you may think that marketing analytics isn’t really your problem. That’s not necessarily true, though—the marketing team depends on their work with data, and thus their success (or failure) hinges on how you market to consumers and how your company uses the data from that process.
Top 5 Reasons Why CMOs Should Care About Marketing Analytics
Here are five reasons why you should care about marketing analytics as the CMO of your organization.
1) Measure What Matters Most
The most important function of analytics is to measure what matters most. The term 'most important can mean a variety of things, but it's typically related to the metrics that have the biggest impact on company goals. These are also known as key performance indicators or KPIs. KPIs, in their simplest form, are the metrics that show whether your company is making progress toward its objectives.
If you're not measuring marketing metrics, then you don't know whether or not your marketing strategy is working and what needs to be improved for better results in the future. There are many different types of KPIs, such as financial metrics, customer retention rates, and brand awareness rankings. However, there are some KPIs that affect marketers more than others. Let's take a look at some of the most common ones and how they affect CMOs:
- Lead conversion rates tell you how effective your ads and content marketing campaigns are.
- Conversion rates (eCommerce) tell you how often people buy products after clicking through an ad or visiting your site.
- Social media shares help you determine which social networks generate the best engagement with your customers so you can allocate more time to those channels.
- Unsubscribes indicate if there is an issue with one of your campaigns because customers who unsubscribe probably don't like it as much as customers who stay subscribed to your email list.
- Clickthrough rates (CTR) reveal how good your copywriting skills are by telling you how often someone clicks on your advertisement.
- Cost per acquisition tells you how much money it costs to acquire a new customer and provides insight into where you should be investing in getting the best return.
- Cost per click tells you what your ad costs each time someone clicks on it.
2) Engage Customers When They Are Ready To Buy
Marketers should be aware of their customers' buying timelines and take steps to help them in their decision-making process. The best way to do this is by following the customer through the funnel, from awareness all the way through conversion. Proper marketing analytics will give you a better understanding of where your customers are in their journey and what they need in order to make a purchase. If you can help them along the way with relevant content, they'll be more likely to buy when they're ready!
It's not just about delivering great messaging but also ensuring it reaches the right audience at the right time, so it has an impact. In an online world that offers many different channels and messages, marketers have to stay nimble to reach their audiences most effectively. That's where marketing analytics comes into play - giving you a clear picture of your target market, what they care about, and how they engage with different media types. With accurate data, you can find out which channels resonate most with each individual demographic segment and put together the perfect plan for reaching them.
3) Understand What Influences Purchase Decisions
Marketing has always been about understanding what influences purchase decisions. The idea is to try and get people to buy your product, not just now but in the future. In today's digital world, there are more ways for marketers to gather data about their customers than ever before. Marketers are able to track customer behavior by analyzing what they do online and offline, where they spend their time, and how much time is spent looking at a product.
Data like this can help marketers better understand what influences customer decisions when it comes to purchasing products or services. This information can then be used in different ways, such as by designing marketing campaigns with specific demographics in mind or by developing new products that better suit customer needs. When you know exactly who your customers are and why they're buying, you'll be able to target them better so that you increase revenue and keep them coming back for more.
4) Go Beyond Data to Predict Consumer Behavior
Marketing analytics is not just about data. It's about going beyond the numbers to predict consumer behavior and make smarter decisions that will drive increased revenue for your company. While it may sound difficult, marketing analytics is actually quite simple with some basic tools and techniques. By tapping into trends, you can anticipate what consumers want before they know they want it, which will help you stay one step ahead of the competition. As a CMO, don't be afraid to use these techniques to make better business decisions that will yield greater profits in the long run!
So how do you develop a marketing analytics strategy? Using these techniques can help you better predict consumer behavior, which will enable you to make more informed business decisions in all areas of your company.
- The first step is to know who your target customer is. Without knowing who and where to find customers, it's difficult for marketers to do their job effectively. Knowing where and what mediums are best for reaching customers will allow you to choose how much (or little) marketing budget should be allocated towards each specific channel, helping your company reach its growth goals while staying profitable.
For example, if certain channels have lower conversion rates but are less expensive than others, use those channels during off-peak periods when your target audience may be more receptive or on a budget. That way, you can get the most out of your investment.
- The next step is developing a predictive model. With predictive modeling, businesses can identify their ideal customers and customize offers to meet their needs—allowing them to spend less time trying to figure out what products/services would appeal most and focus instead on communicating those solutions in an effective manner.
Marketers also need to think about how different channels impact campaigns: for example, if you're running an email campaign targeted at new mothers via social media, does it increase or decrease your ROI? How does the ROI change depending on whether or not the campaign is sent only at 8 am versus 8 pm? What percentage of the total population is online at that given hour? And what are their demographics like? Analyzing this data will tell you exactly how many people saw the ad, clicked on it, and then proceeded to purchase something from your website as a result.
These questions can give companies valuable insight as to which channels work best for them and why. However, beware of analyzing too much data--your brain might start hurting by page 10! So keep your report short and sweet by highlighting key insights. You'll still learn valuable information without having to read through pages upon pages of charts.
Other Common Reasons To Care About Your Marketing Analytics
If that's not enough reason to consider marketing analytics, here are two more:
- You can learn from other brands - Comparing yourself to competitors gives you valuable insight into what your customers like or don't like. For example, many companies see whether or not competitors have similar products and services in their inventory as well as what differentiates them from one another. Doing this makes an impactful statement to potential customers and enables you to keep up with the competition without duplicating their efforts.
- Targeted Campaigns Reach Specific Groups Better- When making changes based on data points rather than intuition alone, targeted campaigns improve conversion rates for small groups because messages are tailored to those groups' needs and interests.
From this article, we conclude that there are a few reasons why CMOs should care about marketing analytics. Firstly, there is increased competition for customers and more advertising channels. Secondly, it helps to measure ROI and track the success rates of campaigns. Thirdly, it can help you understand the customer. Fourthly, it aids in understanding the customer journey. Finally, it provides a better understanding of your own brand and what messages resonate with customers and prospects. If you haven't read this blog post yet, then I suggest doing so as soon as possible!
- What does marketing analytics entail?
Marketing analytics are used by companies as part of their larger strategy to research consumer behavior and make decisions based on such insights. By doing so, organizations can gain a competitive edge over competitors who aren't analyzing their customers like this.
- What types of analysis does marketing involve?
Common analyses involve purchasing trends, customer retention rates, or new product offerings (among other things). When do companies employ marketing analytics? They're employed at all times - from brainstorming new ideas to testing them out in order to gather valuable feedback.
- Who typically oversees this work?
Marketers or advertising specialists usually oversee this work if they have the time - sometimes salespeople will take on more responsibility here, too, if need be.
- Is marketing analytics important to my company?
Of course! Without marketing analytics, how would you know what type of promotions or advertisements were working best?
- How much should I budget for this type of project?
That depends on many factors, but we recommend spending at least 10% of your total budget on marketing analytics each year.
- Why are marketers hesitant about using these methods?
Some people worry that these strategies will only benefit the largest players in an industry and leave smaller players behind; however, any good marketer knows that this won't happen if you keep up with the latest changes.