Marketing Analytics Notes PDF

MARKETING ANALYTICS Ashish Mathur School of branding and advertising  Objectives: 1. Understand the fundamental concepts and techniques of marketing analytics. 2. Define key metrics and KPIs used in marketing an...

MARKETING ANALYTICS Ashish Mathur School of branding and advertising  Objectives: 1. Understand the fundamental concepts and techniques of marketing analytics. 2. Define key metrics and KPIs used in marketing analytics. 3. Develop customer segmentation strategies based on demographic, psychographic, and behavioral characteristics. 4. Evaluate and optimize marketing campaigns using A/B testing and experimentation 5. Look at the impact of analytics in CRM, Digital marketing, Sales and customer engagement. School of branding and advertising  Data Data isubiquitous.It’scollectedateverypurchasemade,flighttaken,adclicked,andsocial media post liked—which means it’s never been more accessible to organizations. Yet, access to data isn’t all it takes to set a business on the path to success; it also takes employees who understand and know how to leverage data. There’snowanincreased demandfordata-literatebusinessprofessionalswhocan handle,analyze,andinterpret datatodrivedecision-making. “In this world of big data, basic data literacy —the ability to analyze, interpret, and even question data—is an increasingly valuable skill,” With the right skills, data can allow you to gain and act on customer insights, predict future financial and market trends, and enact systemic change for social good. Big data is data that is characterized by volume, variety, velocity, variability, veracity, value. School of branding and advertising  Marketing Analytics Your client has invited you to a meeting on 30 thh of December, January 6th , Feb 3rd Is there a pattern here? Marketing Analytics is a discipline that uses Statistics and Machine Learning models and visualizations to provide data-driven inference for marketing decisions. Marketing analytics can help increase return on investment (ROI) and create better customer experiences. It impacts domains like CRM, advertising, Digital marketing amongst others. There are different types of marketing analytics tools and models that you can use to collect, analyze, and interpret your marketing data. Some of the common tools are web analytics, email analytics, social media analytics, mobile analytics, and lead generation analytics. Some of the common models are descriptive, predictive, and prescriptive analytics. Each of these tools and models can help you answer different questions and achieve different goals. For example, if you want to know how many people visited your website, how long they stayed, and what pages they viewed, you can use web analytics tools like GoogleSchool Analytics. of branding and advertising 11  How Data helps Data scienceistheprocessofbuilding,cleaning,andstructuring datasets to analyze and extract meaning. Data analytics,ontheotherhand,referstotheprocess andpractice of analyzing data to answer questions, extract insights, and identify trends. If your dataset isn’t structured, cleaned, and wrangled, how will you be able to draw accurate, insightful conclusions? School of branding and advertising  How data helps Gain customer insights: Data about your customers can reveal details about their habits,demographics,preferences,andaspirations. Increase security: You can also use data science to increase your business’s security and protect sensitive information. For example, machine-learning algorithms can detect bank fraud faster and with greater accuracy than humans, simply because of the sheer volume of data generated every day. Inform internal finances: Your organization’s financial team can utilize data science to create reports, generate forecasts, and analyze financial trends. Data on acompany’scashflows,assets,anddebtsisconstantlygathered,whichfinancial analysts use to manually or algorithmically detect trends in financial growth or decline. School of branding and advertising  How data helps Streamlinemanufacturing/Services :Manufacturingmachinesgath fromproduction processesathighvolumes.Incaseswherethevolumeofdata collected is too large Predict future market trends: Collecting and analyzing data on a larger scale can enable you to identify emerging trends in your market. By staying up to date onthe behaviorsofyourtargetmarket,youcanmakebusinessdecisionsthat allow you to get ahead of the curve. School of branding and advertising  Creating target groups Demographics It is a way of describing audience based on measurable and quantifiable factors such as -gender age income level marital status education race religion School of branding and advertising  Creating target groups Psychographic Segmentation Psychographic segmentation divides the target market based on socio- economic class, personality, or lifestyle preferences. - attitudes - aspirations -habits including media & product consumption School of branding and advertising  Segmentation Process of systematically grouping sets of consumers into groups based on similar characteristics. Segments can be based on demography, Psychographic, geography, category or brand related attitude and behaviors. The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs. Each subset may conceivably be chosen as a market target to be reached with a different marketing strategy. A target marketis a groupof customersa business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target marketis the first element of a marketing strategy. Uses in advertising : Help in defining Target groups. Consumers can be segmented by usage or income. School of branding and advertising  Audience measurement Audience measurement measures how many people are in an audience, usually in relation to radio listenership and television viewership, but also in relation to newspaper and magazine readership and web traffic on websites. Measurements are broken down by media market, which for the most part corresponds to metropolitan areas, both large and small. IRS/TAM/RAM Diary method : researcher goes to the audience with a booklet and records TV audience. School of branding and advertising School of branding and advertising  Digital/ web analytics Web analytics Techniques used to assess and improve the contribution of digital marketing to a business reviewing traffic volume, clickstreams, online reach data, customer satisfaction surveys, leads and sales https://www.smartinsights.com/ https://www.digitalanalyticsassociation.org/ School of branding and advertising  Audience Measurement on Digital 1. Website Traffic 2. Demographics 3. Audience Interests/Behaviors 4. Search Keywords 5. Digital Media Consumption 6. Clicks 7. Conversions School of branding and advertising  Key tools for digital advertising measurement https://marketingplatform.google.com/about/analytics/ Google Analytics is the most-used tool for web analytics on the internet https://www.youtube.com/user/googleanalytics https://www.hubspot.com/ -It's a one in all solution that provides plenty of feedback and support for analysis and evaluation. https://hootsuite.com/en-gb/ -Manages multiple social platforms https://mixpanel.com/ Mixpanelis a tool for mobile, allowing you to measure the ways people are using app or site, whether they're coming back and using them again after their first visit School of branding and advertising School of branding and advertising  4. Descriptive analysis involves checking variation in each variable using mean, variance, and covariance (or correlations) –usually descriptive analysis is done as part of EDA. 5. Correlation is a one of the primary techniques to examine how two variables move together. 6. Predictive analytics is a discipline focused on estimating the values of a metric for future. Machine learning technologies play a critical role in predictive analytics. 7. Prescriptive analyticsaims at suggesting a course of action and outcome associated with each action (say pricing change or increase in promotion spends in a channel) School of branding and advertising  Overview of Marketing Analytics 1.Marketing analytics can be termed as a discipline that uses appropriate statistical, machine learning models, and visualizations to inform about key marketing decisions. 2. Marketing analytics possibilities start with availability, depth of data. Data can be from firm’s internal sources or can be bought from market research. 3. Marketing analytics use case begins with exploratory data analysis (EDA) –this typically involves checking data sanctity, useful variations and the applicable variance in data. Exploratory Data Analysis (EDA) is a process used by data scientists to analyze and investigate data sets and summarize their main characteristics, often employing data visualization methods. It involves a variety of techniques to: Discover patterns Spot anomalies Test hypotheses Check assumptions School of branding and advertising  Key tools for digital advertising measurement https://www.megalytic.com/ Megalyticlets you pull in data directly from a number ofdifferent sources such as Google Analytics or Adwords, can be used to create integrated reports https://www.salesforce.com https://www.salesforce.com/products/einstein-analytics/overview/ The platform features analytics tools called EinstienAnalytics that can help you build up a clear picture of how your marketing activity is impacting sales https://www.alexa.com/topsites/countries/IN Best tool to check ranking, page hits. School of branding and advertising  Mean 1.Mean: The mean is the most used measure of central tendency. It represents the average of a given collection of data. The mean can be calculated for both continuous and discrete data. Mathematically, the mean is equal to the sum of all the values in the data set divided by the total number of values. Data –4,8,9,16,23 -12 School of branding and advertising  Median Median: The median is the middle value of a data set when the values are arranged in ascending order. It is the value that separates the lower half from the upper half of the data. 4,8,9,16,23 Calculate median – 5+1 -6 6/2 -3 So median is 9 School of branding and advertising  Mode Mode: The mode is the data value that appears most frequently in the data set. It represents the value with the highest frequency. A data set can have one mode (unimodal), multiple modes (multimodal), or no mode (if all values occur with equal frequency). 4,8,9,16,23 School of branding and advertising  Sources of Marketing Information Users of Marketing Information External Database Marketing Department People Hiring MR Agency Management People Government Reports Heads of other Departments Commercial Databases Internal Database Info from channel members Order history Competitors’ data Sales and stock records Internal Research findings School of branding and advertising  Touchpoint and Profiling of the Customer Idea of Touch Point Every source (Touch Point) you tap for information becomes source of your information to the seller Browser dataaccounts Social media CustomerInformationforprofiling the customer Purchasing power Bank account Education Credit Card Vehicle information Email account Professional Apps used memberships Institute data School of branding and advertising ompany C data  Customer Engagement  eMail  Mobile Messaging including whatsapp  Social Media –Facebook  Mobile Apps  Tele calling  Make customer ‘Subscribe’  Ask for referrals and reward for references School of branding and advertising  Advanced Computing terms Machine Learning focuses on the development of methods that access data and infer patterns within the data, without the need of being explicitly programmed. Blockchain Blockchainis a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. The Internet of Things (IoT) refers to a network of physical devices, vehicles, appliances, and other physical objects that are embedded with sensors, software, and network connectivity, allowing them to collect and share data. School of branding and advertising  Advanced Computing Concepts Quantum Computing It uses particles like electrons or photons to process complex information faster and more efficiently.. Deep Learning Machine learning based on artificial neural networks. LLM A large language model is a type of artificial intelligence algorithm that applies neural network techniques with lots of parameters to process and understand human languages or text using self-supervised learning techniques Neural Networks Neural Networks are computational models that mimic the complex functions of the human brain. The neural networks consist of interconnected nodes or neurons that process and learn from Schooldata, of branding and enabling tasks such as pattern recognition and decision making in machine learning. advertising  WHY IS MARKETING ANALYTICS IMPORTANT? 1. Improve the User Experience Collecting and analyzing your users’ first-party data can reveal how they feel about their interactions with your product and website. Whether their feelings are explicitly stated (for instance, in a survey) or implicit in their behaviors(for instance, leaving the website shortly after loading the page), having this qualitative and quantitative information can allow any organization to make changes that address their needs and increase the potential for leads to become customers. 2. Calculate the Return on Investment of Marketing Efforts Another important function of marketing analytics is calculating monetary gain that can be attributed to specific marketing channels or campaigns. calculate the return on investment School of branding and advertising  Calculating ROI for a specific marketing effort, use the following formula: ROI = (Net Profit / Cost of Investment) x 100 Net profit is 10 Investment is 100 ROI will be ? 10/100x100 = 10% School of branding and advertising  Popular marketing analytics software Hubspot: measures the performance of all marketing campaigns https://www.hubspot.com/products/marketing/analytics Sprout Social: manages,listens, and tracks social media engagement https://sproutsocial.com/ SEMRush: tracks and measures content marketing efforts https://www.semrush.com/ Brandwatch: finds trends, gathers consumer insights, and tracks marketing campaign performance https://www.brandwatch.com/ Salesforce: marketing campaign performance across all channels https://www.salesforce.com/products/marketing-intelligence/ School of branding and advertising  Importance of Marketing analytics 4. Gain a better understanding of your customers. Data can provide actionable answers about your customer base, including who they are, what actions they commonly take, what their pain points tend to be, and more. Data can help you understand what improvements your team can make to improve their experience. 5. Refine your marketing strategy. Data tells you what works and why, so you can refine your marketing strategy in real time, replicating certain efforts because they're performing well and eliminating those that are under-delivering. 6. Predict the success of future marketing campaigns. With predictive scoring based on past marketing campaigns, data can often predict how customers will respond to future campaigns and overall advertising and marketing efforts. School of branding and advertising Marketing Analytics Process School of branding and advertising