Welcome to the third installment of our School of Analytics series. Branching off from the previous lesson, we will be exploring different types of marketing analytics, and why not all marketing analytics methods are equal.
When looking at marketing analytics, there’s a broad scale to cover. This includes various different types of analytics, each with its own possibilities and limitations.
In order to get the most value out of your marketing analytics, you will need to make sure that you choose the right tools to give you the results you’re after. In order to properly scale your marketing ROI and accelerate your marketing results, predictive or prescriptive analytics are your only real options. We’ll explain why.
The Scale of Marketing Analytics
To know why marketing analytics are not all equal, we first need to understand the scale of marketing analytics. There are five basic areas of marketing analytics. Each of these can be applied to provide specific insights and achieve certain results.
It’s important to understand that not all of these tools will be able to provide the same end result or bigger view. Each type of analytics is limited in its outcome, so if you’re looking to access the largest end of the analytics scale, then you can’t just rely on a single limited area of analytics.
The different analytics tools are:
- Descriptive analytics – what happened
- Diagnostic analytics – why did it happen
- Process analytics – how did it happen
- Predictive analytics – what will happen
- Prescriptive analytics – how can we make it happen
So if your business wants to find the smartest possible marketing solution, then relying only on descriptive analytics won’t give you enough for a clear outcome or decision.
Time Lag in Marketing Analytics
Time lag covers the journey of when a customer makes their first interaction with you until their final conversion. This is essential for understanding the journey of your users. You can use time lag to track the effectiveness of your marketing strategy, and how time is impacting your marketing results.
Many tools can’t handle time lag, so it’s important to choose a tool that is able to monitor this entire period. This provides a more complete overview to help you make smarter decisions.
Using Different Marketing Analytics Tools
In order to really accelerate marketing investments, the best possible outcomes and decisions need to be drawn from analytics. To achieve this, one needs to understand the correlation between cause and effect.
This is where predictive and prescriptive marketing analytics is so important. These tools allow you to scale marketing ROI by drawing valuable insights from your data. You don’t just look at what happened, but you’re able to find ways to move forward.
Bigger picture marketing strategies need to take this kind of approach to continually provide value to the marketing mix.
In order to provide the most value for your marketing strategy, you need to be using the right marketing analytics tools. Analytics covers a broad scale, and choosing the wrong tool could prohibit your business growth.
You need to be able to draw insightful decisions from your analytics. This is essential for making smarter marketing decisions with a higher ROI.