Advantages of Marketing Analytics
- Granular Segmentation
Marketing departments depend on the right segmenting to deliver impactful messaging and relevant communications to leads and customers. After all, one email that targets males aged 20–55 probably won’t incite as much engagement compared to a message targeting a smaller age bracket, an audience with a shared interest or audience with similar spending activity.
But there’s a reason many marketing analytics teams don’t go as granular as they’d like in their communications. It’s because they don’t have access to marketing analytics dashboards that instantly group customers based on different metrics.
For example, a marketing assistant could search ThoughtSpot for customers that have purchased six or more times this year in the Southwest region to gather contacts for an upcoming joint promotion with a business chain in the area.
- Tailored Messaging
Effective marketing has always been about persuasion. But instead of trying to persuade the masses, marketing today is about delivering personalized messaging and offers to both customers and potential customers alike.
Send something irrelevant to a lead and they’ll disregard the message and probably your business along with it. Do the same thing to an active guest and they’ll think you’re not paying close enough attention, damaging your rapport.
Marketing analytics tools can also play an integral role in the timing of communications and the mode through which they’re sent. This gives businesses the best chance of reaching customers in a good state of mind.
- Multi-Channel Customer View
The more a marketing department interacts with leads and customers, the better understanding they have of their audience base. This is especially helpful in our digital age because, just like the preference of communication medium, consumers tend to spend time in different places.
Tracking customer behavior, including engagement and buying activity across channels, gives marketing a comprehensive understanding of how to interact with a customer. This includes what kinds of communications they respond best and worst toward, as well as strategies that can increase their lifetime value.
- Marketing Analytics with ThoughtSpot
Leveraging a marketing data analytics tool offers knowledge at scale for an entire marketing department and beyond. Platforms like ThoughtSpot allow marketing teams to better segment audiences, deliver tailored messaging and gain a complete view of customers across channels.
Disadvantages of Marketing Analytics
- Misidentifying Market Needs
One of the elements of your marketing analysis is identifying the needs of each market segment. It also identifies other businesses and products that are attempting to satisfy the needs of this segment. The disadvantage of doing this is twofold. You may overestimate how well your competition is meeting the customers’ needs and quit before you even try to market. You also may misidentify the need that is being met. Don’t overlook the uniqueness of your own offering. Just because competition wants the same customer you do, that doesn’t mean you are satisfying the same need.
- Evaluating Market Growth without Market Share
Your marketing analysis will include a look at how the overall market is growing, which can give you some idea of your range of opportunities. If your analysis discourages you, however, it can be a disadvantage. You can successfully compete in a limited market if you capture market share. An analysis of the market size alone is not enough to indicate your opportunities. Improved market share can compensate for a slow-growth market.
- Market Segmentation Versus Target Markets
You must identify the segments of the market that have potential customers for your products or services. This will help you understand the varied approaches you may need to take to reach different types of customers. The downside is that you may spread yourself too thin. Few businesses can afford to market to every single potential customer. Identify a target market that you choose from among the available segments, and go after that target market in a focused manner.
- Improper Interpretation of Data
A marketing analysis is only as good as the analyzer. You can collect a lot of data in market surveys, but interpreting that data correctly is vital. You will be at an extreme disadvantage if you misinterpret facts and make decisions based on that misinterpretation. Run your analysis past a trusted adviser or two. Make sure your analysis is not wishful thinking.