Marketers are increasingly realizing the importance of value for money in marketing analytics. They are finding new and enhanced ways to evaluate online customer experiences.
Let us explore the future of marketing analytics.
Digital-first brands will focus on market mix modeling
Market mix modeling is rapidly gaining popularity. As multi-touch attribution gradually disappears and third-party cookies are phased out, marketers will no longer be able to track customers’ online journeys. This leaves them to find another method to understand how online communications affect sales.
The COVID-19 pandemic changed the pattern of demand. During the pandemic, marketers became aware of the problems with multi-touch and last-click attribution. They witnessed drastic swings in the number of sales their digital marketing initiatives were driving.
Because the pandemic forced people to stay home, eCommerce brands had a profitable 2020. Thus, going forward, marketers will experiment with untrackable advertising like out-of-home and television.
Marketers will find better ways to evaluate online customer experience
The lockdown saw a sharp decline in in-person shopping in brick-and-mortar stores. This resulted in $1.36 in every $4 being spent online. 2021, therefore, will see a higher level of online shopping. COVID-19 has turned customers away from the idea of in-person retail. This effectively means more customer experiences are taking place on a computer or phone instead of in physical retail stores. This trend will continue in 2021 and beyond.
This also makes customer experience much easier to track and measure. However, those brands that were successful at creating positive customer experiences in person, will need to learn to deliver exceptional customer service and customer experiences online, to ensure their brands remain relevant.
Marketers need to better understand how customer experiences impact their sales and overall brand.
The focus will be on value for money in marketing analytics
According to the IPA’s Bellwether report released at the end of 2020, 30-40 percent of marketing executives intended to reduce spending on marketing initiatives. With traditional market research budgets drastically reduced, marketing analytics will fare better. Marketers will focus on gaining value for money through their future marketing initiatives.
Many marketing directors and executives will turn to smaller, independent marketing analytics providers to make sense of the impact of their marketing efforts on their brand and sales.
Rise of real-time data analytics
Real-time data analytics can transform the way an organization works. Marketers can harness real-time analytics to gain precise insights and draft business strategies based on the data. With real-time analytics, marketers can improve interactions with customers. This will help them offer more personalized marketing and brand experiences.
Multichannel marketing will be driven by automation
By 2023, autonomous marketing systems will issue more than 50 percent of multichannel marketing messages based on real-time consumer behavior. This will result in a 20 percent increase in response rates.
The rapid rise of automation has led to an increase in multichannel marketing. This will open up new opportunities for marketing leaders to create omnichannel marketing strategies.
The last word
Marketing analytics is evolving rapidly fuelled by advancements in artificial intelligence, machine learning, and statistical modeling. Digitization is spreading fast around the world and marketing analytics will play an important role in building modern marketing strategies.