Data analysis is a term that flies around a lot. But as a business owner, when you look into doing data analysis, it sounds simple until you start digging down. Data analysis can be daunting, but it is a valuable asset. That is why big successful corporates are investing heavily in it.
If they are pouring so much money into it, should you not be paying more attention to it? Here is an explanation of which data will help you in your business!
What Are Marketing Analytics?
Tracking your marketing performance with data analytics should be a mandatory process within your business. It covers the analysis of sales, the web, social media, behavior, operations, and other data.
There are three main groups of marketing analytics:
- Descriptive analytics
- Predictive analytics
- Prescriptive analytics
Each of these groups needs data harvesting and analysis followed by strategic use to enhance marketing and your top line! Data builds trust and trust creates sales.
Read about data & trust in The Business Kamasutra!
Let’s look at the different analytics.
Overview Of Descriptive Analytics
This analytical methodology is retrospective. It gives you insight into previous strategies and performances and can provide a good contextual understanding of what is causing the current results.
If you wanted to analyze the performance of a blog, you could:
- Note its current page view numbers
- Note its web analytics for the first month
- Compare this data to the data of comparable posts
- Note the post sources
- Note the differences in the posts, e.g. what went viral, Ad campaigns, etc.
- Note the market environment
- Conclude which differences or similarities influenced the results
Descriptive analytics, therefore, answers the questions:
- What happened?
- Why did it happen?
- What might you expect in the future?
Overview Of Predictive Analytics
This analytical methodology utilizes vast amounts of past data and machine learning algorithms to make scientific future predictions. The longer the analysis is done, the greater the prediction accuracy.
A machine learning algorithm analyses huge groups of data and may pick up groupings within your target market. From this, it may extrapolate the high returns segment to leverage better returns on investment.
An algorithm will do in minutes what would take you months and at a more granular level. It finds the hidden gold and empowers you to curate highly personalized marketing.
Predictive analytics, therefore, answers the question: What will happen in the short, medium, and long term?
Overview Of Prescriptive Analytics
This analytical methodology is also retrospective and uses data to propose the biggest ‘bang per buck’ actions. It is most effective when automated so that the recommendations are executed immediately.
It does not aim to report on what will happen but on how to influence.
Prescriptive analytics answers the question: What will influence the outcomes?
Comprehensive data analysis is easier to achieve when your marketing and product data are integrated via one system.
Data builds trust and trust creates sales.
Turn your data analysis into sales and start with free business growth gifts from us! Contact eLaunchers today.