Article | June 21, 2021
The marketing industry keeps changing every year. Businesses and enterprises have the task of keeping up with the changes in marketing trends as they evolve. As consumer demands and behavior changed, brands had to move from traditional marketing channels like print and electronic to digital channels like social media, Google Ads, YouTube, and more. Businesses have begun to consider marketing analytics a crucial component of marketing as they are the primary reason for success.
In uncertain times, marketing analytics tools calculate and evaluate the market status and enhances better planning for enterprises.
As Covid-19 hit the world, organizations that used traditional marketing analytics tools and relied on historical data realized that many of these models became irrelevant. The pandemic rendered a lot of data useless.
With machine learning (ML) and artificial intelligence (AI) in marketers’ arsenal, marketing analytics is turning virtual with a shift in the marketing landscape in 2021. They are also pivoting from relying on just AI technologies but rather combining big data with it.
AI and machine learning help advertisers and marketers to improve their target audience and re-strategize their campaigns through advanced marketing attributes, which in turn increases customer retention and customer loyalty.
While technology is making targeting and measuring possible, marketers have had to reassure their commitment to consumer privacy and data regulations and governance in their initiatives. They are also relying on third-party data.
These data and analytics trends will help organizations deal with radical changes and uncertainties, with opportunities they bring with them over the next few years.
To know why businesses are gravitating towards these trends in marketing analytics, let us look at why it is so important.
Importance of Marketing Analytics
As businesses extended into new marketing categories, new technologies were implemented to support them. This new technology was usually deployed in isolation, which resulted in assorted and disconnected data sets.
Usually, marketers based their decisions on data from individual channels like website metrics, not considering other marketers channels. Website and social media metrics alone are not enough. In contrast, marketing analytics tools look at all marketing done across channels over a period of time that is vital for sound decision-making and effective program execution.
Marketing analytics helps understand how well a campaign is working to achieve business goals or key performance indicators.
Marketing analytics allows you to answer questions like:
• How are your marketing initiatives/ campaigns working? What can be done to improve them?
• How do your marketing campaigns compare with others? What are they spending their time and money on? What marketing analytics software are they using that helps them?
• What should be your next step? How should you allocate the marketing budget according to your current spending?
Now that the advantages of marketing analytics are clear, let us get into the details of the trends in marketing analytics of 2021:
Rise of real-time marketing data analytics
Reciprocation to any action is the biggest trend right now in digital marketing, especially post Covid. Brands and businesses strive to respond to customer queries and provide them with solutions. Running queries in a low-latency customer data platform have allowed marketers to filter the view by the audience and identify underachieving sectors. Once this data is collected, businesses and brands can then readjust their customer targeting and messaging to optimize their performance.
To achieve this on a larger scale, organizations need to invest in marketing analytics software and platforms to balance data loads with processing for business intelligence and analytics. The platform needs to allow different types of jobs to run parallel by adding resources to groups as required. This gives data scientists more flexibility and access to response data at any given time.
Real-time analytics will also aid marketers in identifying underlying threats and problems in their strategies. Marketers will have to conduct a SWOT analysis and continuously optimize their campaigns to suit them better.
Data security, regulatory compliance, and protecting consumer privacy
Protecting market data from a rise in cybercrimes and breaches are crucial problems to be addressed in 2021. This year has seen a surge in data breaches that have damaged businesses and their infrastructures to different levels. As a result, marketers have increased their investments in encryption, access control, network monitoring, and other security measures.
To help comply with the General Data Protection Regulation (GDPR) of the European Union, the California Consumer Privacy Act (CCPA), and other regulatory bodies, organizations have made the shift to platforms where all consumer data is in one place. Advanced encryptions and stateless computing have made it possible to securely store and share governed data that can be kept in a single location. Interacting with a single copy of the same data will help compliance officers tasked with identifying and deleting every piece of information related to a particular customer much easier and the possibility of overseeing something gets canceled.
Protecting consumer privacy is imperative for marketers. They offer consumers the control to opt out, eradicate their data once they have left the platform, and remove information like location, access control to personally identifiable information like email addresses and billing details separated from other marketing data.
Predictive analytics’ analyzes collected data and predicts future outcomes through ML and AI. It maps out a lookalike audience and identifies which strata are most likely to become a high-value customer and which customer strata has the highest likelihood of churn. It also gauges people’s interests based on their browsing history. With better ML models, predictions have become better overtime, leading to increased customer retention and a drop in churn.
According to the research by Zion Market Research, by 2022, the global market for predictive analytics is set to hit $11 billion.
Investment in first-party data
Cookies-enabled website tracking led marketers to know who was visiting their website and re-calibrate their ads to these people throughout the web.
However, in 2020, Google announced cookies would be phased out of Chrome within two years while they had already removed them from Safari and Firefox.
Now that adding low-friction tracking to web pages will be tough, marketers will have to gather more limited data. This will then be then integrated with first-party data sets to get a rounded view of the customer. Although a big win for consumer privacy activists, it is difficult for advertisers and agencies to find it more difficult to retarget ads and build audiences in their data management platforms.
In a digital world without cookies, marketers now understand how customer data is collected, introspect on their marketing models, and evaluate their marketing strategy.
Emergence of contextual customer experience
These trends in marketing analytics have become more contextually conscious since the denunciation of cookies. Since marketers are losing their data sets and behavioral data, they have an added motivation to invest in insights.
This means that marketers have to target messaging based on known and inferred customer characteristics like their age, location, income, brand affinity, and where these customers are in their buying journey. For example, marketers should tailor messaging in ads to make up consumers based on the frequency of their visits to the store.
Effective contextual targeting hinges upon marketers using a single platform for their data and creates a holistic customer profile.
Reliance on third-party data
Even though there has been a drop in third-party data collection, marketers will continue to invest in third-party data which have a complete understanding of their customers that augments the first-party data they have.
Historically, third-party data has been difficult to source and maintain for marketers. There are new platforms that counter improvement of data like long time to value, cost of maintaining third-party data pipelines, and data governance problems.
U.S. marketers have spent upwards of $11.9 billion on third-party audience data in 2019, up 6.1% from 2018, and this reported growth curve is going to be even steeper in 2021, according to a study by Interactive Advertising Bureau and Winterberry Group.
Marketing analytics enables more successful marketing as it shows off direct results of the marketing efforts and investments.
These new marketing data analytics trends have made their definite mark and are set to make this year interesting with data and AI-based applications mixed with the changing landscape of marketing channels. Digital marketing will be in demand more than ever as people are purchasing more online.
Frequently Asked Questions
Why is marketing analytics so important?
Marketing analytics has two main purposes; to gauge how well your marketing efforts perform and measure the effectiveness of marketing activity.
What is the use of marketing analytics?
Marketing analytics help us understand how everything plays off of each other and decide how to invest, whether to re-prioritize or keep going with the current methods.
Which industries use marketing analytics?
Commercial organizations use it to analyze data from different sources, use analytics to determine the success of a marketing campaign, and target customers specifically.
What are the types of marketing analytics tools?
Some marketing analytics’ tools are Google Analytics, HubSpot Marketing Hub, Semrush, Looker, Optimizely, etc.
"name": "Why is marketing analytics so important?",
"text": "Marketing analytics has two main purposes; to gauge how well your marketing efforts perform and measure the effectiveness of marketing activity."
"name": "What is the use of marketing analytics?",
"text": "Marketing analytics help us understand how everything plays off of each other and decide how to invest, whether to re-prioritize or keep going with the current methods."
"name": "Which industries use marketing analytics?",
"text": "Commercial organizations use it to analyze data from different sources, use analytics to determine the success of a marketing campaign, and target customers specifically."
"name": "What are the types of marketing analytics tools?",
"text": "Some marketing analytics’ tools are Google Analytics, HubSpot Marketing Hub, Semrush, Looker, Optimizely, etc."
Article | February 25, 2020
Internet of Things, according to congressional research service (CRS) report 2020, is a system of interrelated devices connected to a network and/or to one another, exchanging data without necessarily requiring human to machine interaction.The report cites smart factories, smart home devices, medical monitoring devices, wearable fitness trackers, smart city infrastructures, and vehicular telematics as examples of IoT.
Article | March 12, 2020
Homeless policy needs to join the big data revolution. A data tsunami is transforming our world. Ninety percent of existing data was created in the last two years, and Silicon Valley is leveraging it with powerful analytics to create self-driving cars and to revolutionize business decision-making in ways that drive innovation and efficiency.Unfortunately, this revolution has yet to help the homeless. It is not due to a lack of data. Sacramento alone maintains data on half a million service interactions with more than 65,000 homeless individuals. California is considering integrating the data from its 44 continuums of care to create a richer pool of data. Additionally, researchers are uncovering troves of relevant information in educational and social service databases.These data, however, are only useful if they are aggressively mined for insights, looking for problems to solve and successful practices to replicate. At that juncture California falls short.
Article | May 31, 2021
According to Google trends, predictive data analytics has gained a significant amount of popularity over the last few years. Many businesses have implemented predictive analytics applications to increase their business reach, gain new customers, forecast sales, and more.
Predictive Analytics is a type of data analytics technology that makes predictions with the help of data sets, statistical modeling, and machine learning. Predictive analytics uses historical data. This historical data is fed into a mathematical model that recognizes patterns and trends that are then applied to current data to forecast trends, practices, and behaviors from milliseconds to days and even years.
Based on the parameters supplied to them, organizations find patterns within that data to detect risks, opportunities, forecast conditions, and events that would occur at a particular time. At its heart, the use of predictive analytics answers a simple question, “What would happen based on my current data and what can be done to change the outcome.”
In the current times, businesses have multiple products offerings at their disposal to choose from vendors of big data predictive analytics in different industries. They can help these businesses leverage historical data discovering complex data correlation, recognizing patterns, and forecasting.
Organizations are turning to predictive analytics to increase their bottom line and gain advantages against their competition. Some of those reasons are listed below:
• With the growing amount and types of data, there is more interest in utilizing it to produce valuable insights
• Better computers
• An abundance of easy to use software
• Need of competitive differentiation due to tougher
As more and more easy-to-use software have been introduced, businesses no longer need statisticians and mathematicians for predictive analytics and forecasting.
Benefits of Predictive Analytics
Competitive edge over other businesses
The most common reason why multiple companies picked up predictive analytics was to gain an advantage over their competitors. Customer trends and buying patterns keep changing from time to time. The ones who can identify it first will go ahead in the game. Embracing predictive analytics is how you will stay ahead of your competition. Predictive analytics will aid in qualified lead generation and give you an insight into the present and potential customers.
Businesses opt for predictive analytics to predict customer behavior, preferences, and responses. Using this information, they attract their target audience and entice them into becoming loyal customers. Predictive analytics gives valuable information about your customers such as which of them are likely to lapse, how to retain them, whether you should market directly at them, etc. The more you know about them, the stronger your marketing will become. Your business will become the leader in predicting your customer’s exact needs.
Retaining existing customers is almost five times more difficult than acquiring new ones. The most successful company is the one that invests money in retaining those customers as much as acquiring new ones.
Predictive analytics helps in directing marketing strategies towards your existing customers and get them to return frequently. The analytics tool will make sure your marketing strategy caters to the diverse requirements of your customers.
Earlier marketing strategies revolved around the ‘one size fits all’ approach, but gone are those days. If you want to retain and acquire new customers, you have to create personalized marketing campaigns to attract customers.
Predictive analytics and data management help you to get new information about customer expectations, previous purchases, buying behaviors, and patterns. Using this data, you can create these personalized marketing strategies that will help keep up the engagement and acquire new customers.
Application of Predictive Analytics
Customer targeting divides the customer base into different demographic groups according to age, gender, interests, buying, and spending habits. It helps companies to create tailored marketing communications specifically to the customers who are likely to buy their products. Traditional techniques do not even come close to identifying potential customers as well as predictive analytics does.
The major constituents that create these customer groups are:
• Socio-demographic factors: age, gender, education, and marital status
• Engagement factors: recent interaction, frequency, spending habits, etc.
• Past campaign response: contact response, type, day, month, etc.
The customer-specific targeting for the company is highly advantageous. They can:
• Better communicate with the customers
• Save money on marketing
• Increase profits
Customer churn prevention
Customer churn prevention creates major hurdles in a company’s growth. Although it has been proven that retaining customers is cheaper than gaining new ones, it can become a problem. Detecting a client’s dissatisfaction is not an easy task as they can abruptly stop using your services without any warning.
Here, churn prevention comes into the picture. Churn prevention aims to predict who will end their relationship with the company, when, and why. The existing data sets can help develop predictive models so companies can be proactive to prevent the fallout.
Factors that can influence the churn are as follows:
• Customer variables
• Service use
• Competitor variables
Using these variables, companies can then take necessary steps to avoid the churn by offering customers personalized services or products.
Risk assessment and management processes in many companies are antiquated. Even though customer information is abundantly available for evaluation, it is still antiquated.
With advanced analytics, this data can be quickly and accurately analyzed while maintaining customer privacy and boundaries. Risk assessment thus allows companies to analyze problems with any business. Predictive analytics can approximate with certainty which operations are profitable and which are not.
Risk assessment analyzes the following data types:
• Socio-demographic factors
• Product details
• Customer behavior
• Risk metrics
Evaluating the previous history, seasonality, and market-affecting events make revenue predicting vital for a company’s planning and result in a company’s demand for a product or a service. This can be applied to short-term, medium-term, and long-term forecasting.
Predictive models help in anticipating a customer’s reaction to the factors that affect sales.
Following factors can be used in sales forecasting:
• Calendar data
• Weather data
• Company data
• Social data
• Demand data
Sales forecasting allows revenue prediction and optimal resource allocation.
Healthcare organizations have begun to use predictive analytics as this technology is helping them save money. They are using predictive analytics in several different ways. With the help of this technology, based on past trends they can now allocate facility resources, optimize staff schedules, identify patients at risk, adding intelligence to pharmaceutical and supply acquisition management.
Using predictive analytics in the health domain has also helped in preventing cases and risks of developing health complications like diabetes, asthma, and other life-threatening problems. The application of predictive analytics in health care can lead to making better clinical decisions for patients.
Predictive analytics is being used across different industries and is good way to advance your company’s growth and forecast future events to act accordingly. It has gained support from many different organizations at a global scale and will continue to grow rapidly.
Frequently Asked Questions
What is predictive analytics?
Predictive analytics uses historical data to predict future events. The historical data is used to build mathematical model that captures essential trends. That predictive model is based on current data that predicts what will happen next or suggest steps to take for optimal outcomes.
How to do predictive analytics?
• Define business objectives
• Collect relevant data available from resources
• Improve on collected data by data cleaning methods
• Choose a model or build your own to test data
• Evaluate and validate the predictive model to ensure
How does predictive analytics work for business?
Predictive analytics helps businesses attract, retain, and grow their profitable customers. It also helps them in improving their operations.
What tools are used for predictive analytics?
Some tools used for predictive analytics are:
• SAS Advanced Analytics
• Oracle DataScience
• IBM SPSS Statistics
• SAP Predictive Analytics
• Q Research
"name": "What is predictive analytics?",
"text": "Predictive analytics uses historical data to predict future events. The historical data is used to build a mathematical model that captures essential trends. That predictive model is based on current data that predicts what will happen next or suggest steps to take for optimal outcomes."
"name": "How to do predictive analytics?",
"text": "Define business objectives
Collect relevant data available from resources
Improve on collected data by data cleaning methods
Choose a model or build your own to test data
Evaluate and validate the predictive model to ensure "
"name": "How does predictive analytics work for business?",
"text": "Predictive analytics helps businesses attract, retain, and grow their profitable customers. It also helps them in improving their operations."
"name": "What tools are used for predictive analytics?",
"text": "Some tools used for predictive analytics are:
SAS Advanced Analytics
IBM SPSS Statistics
SAP Predictive Analytics