Beta Version

BLOG

Amit Thapliyal Author's Perspective
4 Minute read

Business Analytics vs Marketing Analytics - Understanding the Basics

Inbound marketing is swiftly changing the way organizations compete. When potential customers are searching for data, connecting with you via web-based networking media, and reaching your website, they leave an abundant trail of information all through their path. Companies capture all this information in order to better understand their customers and design (and market) products, so they are in sync with the information obtained.

The process does not end there, though. Companies are also looking to integrate their sales and marketing teams in order to achieve a more closed-loop approach to marketing analysis.

While browsing an e-commerce website, are you surprised by the pro-active display of relevant products?

How does a website predict your preference and act on it? Well, this is because of business analytics that helps the site to understand the customer journey and behavior in the past (customers’ past search preferences) to predict what can be the preferences of your customer in future.

With the availability of data at the marketer’s fingertips, it is quite natural that marketing analytics is a critical part of business analytics.

Why Analytics?

Before we discuss why Analytics is important, we need to understand the difference between analytics and analysis. Merriam Webmaster defines analysis as a separation of a whole into its parts, and analytics is a method of logical analysis. Data-driven marketers leverage both analytics and analysis to drive all sorts of decisions, and each application supports the unique insights and challenges inherent in dissecting customer behavior.

Thinking about the past and the future is another way to distinguish between analysis and analysis. ‘Analysis’ looks backward and creates a historical view for marketers to know what has happened in the past. ‘Analytics’, on the contrary, looks forward to model the future tin order to predict a result. Regardless of their respective natures, both are equally important to marketers. In addition to providing great value by creating an image of their customers, they also help marketers to evaluate their marketing efforts. Analysis and analytics both play a significant role in identifying the precise audience as well as the marketing message. They help marketers make better business decisions and measure marketing tools performance.

Ebook
Digital Customer Engagement for Asset & Wealth Management Companies

Knowing more about marketing data

Marketing is making a transition from regular outbound, offline marketing to online inbound marketing techniques. We have known for a long time that measurability is the power of digital marketing. However, these days, using the various marketing tools available, one can easily measure every aspect of their marketing efforts, not just from a campaign viewpoint, but on a lead-to-lead or account-to-account basis.

However, measurement is only half the story we hear — the other half being attribution - understanding how to allocate credit to your different marketing efforts and rightly perceive their impact on the client venture.

In order to remain competitive in business and achieve success, business analytics is critical. It is used to measure everything – be it warehouse efficiency, information about manufacturing, sales pipeline or revenue contribution from marketing. What you measure and how you collect information is a case - by - case decision; however, the objective of business analytics remains the same.

marketing analytics

The above image depicts the entire journey of business analytics.

 

Typically, business analytics combines data from each department to gain an understanding of how the organization works as a whole. Today, with most business capabilities moving online, accessing and analyzing information from each department is much easier. And where can you see this better than the marketing department?

While it may seem simple and without any hiccups, business analytics comes with its own share of challenges . As Penn State University's John Jordan rightly described, some of the business analytics challenges include "... a greater potential for privacy invasion, increased financial exposure in fast-moving markets, increased the potential for mistaking noise for true insight, and a higher risk of spending lots of money and time chasing poorly defined issues or opportunities ..."

 

Difference b/w Marketing Analytics and Business Analytics

 

Marketing analytics, as the name suggests, relies on market feedback. It keeps track of subscribers, leaders, and customers ' activities and interests, and helps marketers optimize their campaigns by analyzing market performance. Rather than resting the onus of marketing analytics with just a select few, it should be used for better results by every marketer in the team. This can help them to assess and optimize their efforts. It can also empower one to make data-backed decisions and identify the future course of action. After all, it's not just about getting more clicks or driving more traffic to a website- a digital marketer's job is to drive revenue growth as well.

Failure to quantify the results of your marketing efforts will make it hard for you to recognize the impact they have had on closing leads. This can also hamper the analysis of your lead nurture programs.

Most marketers see their website and analytics of social media as their starting line. While website analytics measure actions like clicks, page views, and conversions; social media analytics provide you with the right insight of your digital media coverage across social media platforms.

Marketing analytics actually goes beyond the strict measurement of online performance - it also includes a way to handle offline marketing efforts. Marketing analytics shows the direct impact of marketing on pipeline generation and revenue growth by bringing together all marketing areas, including offline efforts with sales and lead generation results.

In comparison, business analytics provides insights that help in making informed business decisions and can be used to automate and optimize business processes. For data-driven businesses, all data captured are in fact assets that influence the organization's decision - making process. The quality of the data captured is, of course, important and plays an important role in the decision-making process.

The benefits of marketing analytics are not limited to the marketing department. They hold value for verticals such as sales, customer service and senior business management, among others. This is due to their timely market feedback they provide, which in turn helps professionals to maximize their investments and priorities in the respective verticals.

On the other hand, business analytics prepares you to deal with real business problems, using advanced analytical methods such as optimization, simulation, forecasting and statistics. While marketing analytics is ideal for work on marketing issues; business analytics helps in organizational decision-making processes.

Marketing and business analytics ultimately are the two sides of a coin – business analytics wouldn't tell the complete story without marketing data and vice versa. In order to provide feedback on the downstream impact of marketing efforts, marketing analytics relies on business data from other departments, primarily sales.

Key takeaways

1.      Marketing analytics measures integrated online and offline marketing effects.

2.      Marketing analytics help organizations make faster, data-driven business decisions that focus on real customer feedback

3.      Business analytics is used to evaluate operations across organizations and can be implemented in any department, be it sales, product development or even customer service.

4.      Business analytics solutions generally use data, statistical and quantitative analysis, and fact-based data to measure past performances to guide business planning for an organization.

We at Altudo, help brands create awe-inspiring customer experiences. Our Revenue Engine Framework brings together CX & Demand Gen Strategy, 1:1 Personalisation & Engagement Analytics through Sitecore & Cross Channel Orchestration to curate engagement experiences for your customers & drive revenue outcomes.

Amit Thapliyal VP - Marketing


Browse Topics

Talk to our Experts

Talk to us about how we bring together 1:1 personalisation, deep Martech Expertise, CX & Demand Gen Strategy, Engagement Analytics & Cross-Channel Orchestration to drive award winning experiences that convert

Get in touch for a complimentary consultation or a demo today.

Expert Workshops

Free workshops, expert advice & demos- to help your realize value with Sitecore

Register

Session Presentations

  • Sitecore + SFMC= Marketing Success
  • Transforming The Future Of eCommerce
Meet Us

Giveaways:

Participate in our event survey , meet us at our booth , get free giveaways & a chance to win an iPhone 11

Let’s go