As companies increase their digital footprint, the more data becomes available to them. However, much of the time the data can go to waste where teams don’t have the resource to properly analyze it or perhaps are unaware of the value it has the potential to provide.
With expertise at a premium, businesses are turning to specialist Marketing Analytics companies to help create valuable insight for them. There are several ways in which they can help to achieve this.
It is estimated that there are around 2.77 billion social media users around the globe at the start of 2019. Online shopping sites like Amazon are up to around 400 million active users and as on January 2019, Netflix had 139 million paid subscriptions. All of this means that we now have a huge amount of customer behaviour trends to analyse.
If you are using some of these channels, Marketing Analytics Companies have the capacity to tap into not only the behaviour but even unstructured data like feedback and comments that would previously have been ignored. The preferences within all of this could help design entire marketing campaigns. In fact, combining this with your transactional and structured data could mean that virtually even single customer gets a completely different interaction (if that was the right thing to do).
Understanding the customer
Whilst data can help you know how your customer behaves, Marketing Analytics companies can go to an even deeper level and help you get a conscious understanding of them as well. Let’s take an everyday example, booking a holiday. For the purposes of this example, we will assume the customer has opted in to sharing their data with you.
If you are a retailer with an App selling travel products, you might be interested to see when one of your customers books a holiday. Some people might mention this on their social media feed giving you a row of data. From their previous purchases, you know that they tend to be in the market for travel products up to 2 weeks prior to travelling.
Through the App, the customer has geo-location enabled and you know they are hitting the hotspot of a store selling your product, within the 2 weeks leading up to their travels, so you send a special offer to get them to purchase.
Later, the customer hits a hotspot in the same area as an airport, so you send them a last-minute offer for travel insurance which you also happen to sell.
It would take time and a lot of data to gain this level of understanding of every customer, but you can see how campaigns could start being incredibly granular to suit each and every individual. Marketing Analytics companies often specialize in this area. How do you think Netflix are able to recommend which shows you will like?
A further role of the Marketing Analytics company is to help you work out which channels are working for your business. Businesses spend a lot of money on Google Ads, Facebook Ads, Instagram Ads, Twitter, direct mail (maybe), telephony, emails, SMS and Apps. It is important to get insight on how each of these are performing and which of your customers are using the channels. For example, there is no value in trying to market to a segment of customers via Facebook if they only use the platform once a month or send an email to groups of customers that don’t read emails.
The insight provided can help maximize your profit from every marketing channel. This is the next logical step after understanding the customer as it tells you the best way to reach them once you know how they are going to behave.
Some companies are now using Big Data to drive their PPC campaigns. For example, if your customer base tends to be active at 3pm on a Sunday, you can schedule your promotions for that time and automatically retrain your algorithms across the right channels.
Test and Learn
Test and learn or A/B testing methodology can help you optimize your campaigns. The Marketing Analytics company will help you find patterns in what looks like unpredictable circumstances. It is impossible to get it right straight away, so everything needs to work on a more iterative process. Such a method can be extremely useful to fix a problem like high bounce rates.
Customers can be presented with two different landing pages at random to see which ones achieves the best conversion rate. If landing page A wins, you keep it and then try to optimize landing page B to be even better than A again and so on. Eventually, you will hit your peak rate.
There is usually limited expertise and resources to do sophisticated analytics such as running segmentation models, conducting regression analysis, setting up drip campaigns, forecasting future sales and doing other models specific for the business’s needs. A marketing analytics company can create those models in fraction of the time and provide insights that typically analysis miss when looking at their data day in and out.
If you are running a marketing department or marketing company, consider bringing a marketing analytics company to your mix.