One marketing goal that all businesses have is to improve their marketing return on investment (ROI). A good ROI is one of the major success measures that companies use to track their marketing performance. If your entire marketing strategy is offering maximum ROI, then this means great things for your business.
The best way to achieve a good ROI is by using the right marketing analytics. In this article, we’ll uncover the 8 most effective ways to optimize your marketing ROI by using data analytics.
1. Use the Right Marketing Analytics Platform
Leveraging the right data analytics platform is the first essential step to maximizing your marketing ROI. So many businesses rely on marketing analytics platforms that just don’t offer enough insight into their marketing strategy.
The best data analytics platform should offer powerful features like using predictive and prescriptive analytics to help you make smarter marketing decisions. The marketing analytics platform that you choose should be easily scalable with your business, and adjustable to match your different verticals.
2. Identify Your Goals
If you want to achieve the best possible ROI with marketing analytics, then you have to plan for it. Setting measurable goals and KPIs is important for understanding how to measure your marketing strategy and see if you are achieving the goals that you want.
In order to effectively measure your marketing campaigns, you will need to know what success indicators you are trying to achieve. This is necessary for weighing up the results of your marketing analytics, and finding out which areas of your marketing strategy will offer the most value.
3. Experiment Regularly
You’re not going to achieve better results if you don’t make changes and try new things. Your marketing mix should include regular tests and experiments to try new channels and strategies. Testing new approaches and measuring these with a smart analytics tool is an effective way to identify solutions that will boost your ROI.
Of course, using a tool with predictive and prescriptive capabilities will be able to tell you things like which channels to focus on. However, you should still be running tests and experiments to help your analytics find even more possible solutions.
4. Create Buyer Personas Based on Your Analytics Results
If you want to improve the results of your marketing strategy, then you need to have a deep understanding of your customers. Understanding your audience on a deeper level allows you to deliver more personalized, targeted campaigns that deliver better ROI.
To achieve this, create your buyer personas based on your marketing analytics. Remove the guesswork, your target audience should be clearly defined from your data. This will help you to drive up the value of each marketing investment.
5. Only Collect and Measure the Right Metrics
Always make sure that you avoid any vanity metrics that don’t actually help your ROI. This includes things like social media likes and shares. Only pay attention to the metrics that really make a difference to your marketing end results. This means collecting the right data and only focusing on the types of data that align with your targets and goals.
The metrics that you use need to relate to your target customers. You should only be gathering data that can actually be used to help you understand ways to boost your ROI. Vanity metrics are pointless at this.
6. Make Informed Decisions
Marketing analytics can reveal a wide range of information for your business. It’s important that you don’t just look at historical data and make decisions based on a gut feeling. Instead, your business needs to make fully-informed, calculated decisions based on a full range of data. To achieve this, you need to be using advanced analytics, like prescriptive, predictive, and regression models.
Make sure that you use tools that offer actionable insights that you can use for smarter marketing decisions. Once you make these decisions, you will need to stick to them.
7. Create Insightful Reports
Using marketing analytics properly relies on regular reporting. To make sure that you achieve the best possible ROI from this, your reports should be fully customized to match your business. Generic marketing report structures might not target the specific metrics that you need to follow.
So create reports regularly, consistently review your analytics, and make sure that your reports are customized to your business. If you’re not constantly monitoring your analytics and making decisions based on this, then your marketing results aren’t going to change for the better.
8. Focus On Your End Goal
There are many different steps involved in sales funnels and customer journeys. If you want to optimize your ROI, then you need to be focused on the end goal that matters most. For any type of business, this would be making more sales.
Yes, it is important to improve the customer experience. However, this won’t always help you to achieve the best possible ROI from your marketing strategy. Make sure that you understand what the final result is that you want to improve, and focus on this. All metrics that you analyze should be supporting this end goal.
It doesn’t matter how creative or interesting your marketing efforts are if they’re not adding value to your business. Marketers need to be using marketing analytics properly to make smarter decisions and maximize their ROI.
There are many different ways to measure the success of a marketing campaign, but achieving a strong ROI is always essential. Follow these strategies when implementing your marketing analytics, and you will be able to make smarter marketing decisions.