Marketing analytics is sometimes unfairly seen as a way to find out what exactly can be improved, be it sales figures or websites. However, people should be aware that there are some myths out there!
Here are some of the myths about marketing analytics:
MYTH: Online Advertising is something everyone needs.
This isn’t necessarily the case. What is important is that you should have your presence seen, or be easily accessible. Also, it’s a matter of scale and targeting. You don’t need a large marketing campaign when a targeted one can give you the same results, and will be easier to measure. So before thinking about advertising, think deeply about why you’re doing it, and if the profit will cover the cost, even if the campaign does not deliver up to par.
MYTH: Online marketing is cheaper.
Again, it’s not about the cost itself, it’s about how effective the campaign was. You have to check marketing analytics to find out if the cost delivered on the promised result. Otherwise, no matter how cheap the marketing campaign was, it still failed. Rather than running more campaigns because they are cheaper, use data on past marketing campaigns to make your next one more effective.
MYTH: Get as much data as possible.
This is actually a bad idea, because it will be the equivalent of option paralysis, or it may make you focus on a favorable set of results or data – while ignoring what could be data that is more important. Even when you are formulating the marketing campaigns, what you should be thinking about is how to measure the effectiveness of the campaign. Start from the binary of cost versus profit, then figure out what happens in between cost and profit. Aim for data that can measure accurately and precisely your chosen metrics.
MYTH: The campaign or site isn’t about selling, so there are no metrics.
This is not only a myth, this could be a mental form of laziness. Marketing campaigns, even if they are not about direct sales, have a result in mind. You have to find the data points that will measure the cost per unit of that result, and you will know if your campaign worked. Again, this should be planned from the very beginning of the campaign, so that the proper marketing analytics can be used.
MYTH: If I improve the website: more conversion means more profit.
This isn’t true, even from a logical perspective. Let’s say that you did get more people to visit and stay on your site. Assuming that those actions alone will guarantee a certain percentage of profit is not looking at the bigger picture. What you have to do is make the user experience for buying or doing what you want the site visitor to do to be as engaging as possible. That way, if you can improve your actual “sales” within the same number of people going to the site, then you’ve essentially won.
The real trick in marketing analytics is planning what to measure, and once that is done, it will be easy to compile data that you can use to find out what to do better next time.
[author] Ijento offers a comprehensive big-data analytics suite for the enterprise.[/author]