Several companies work tirelessly to stay ahead of their competition. Occasionally, they do that by investing in new technology, other times by allocating more resources to large advertising campaigns or seeking out new professionals who can assist to take their workforce, product, and overall business output to the next level.
Key factor to a successful businesses is depending on marketing analysts, also known as market research analysts, to use business analytics to track trends, identify opportunities, and determine what products people want, as well as identify the buyers and the price they are willing to pay. Armed with this crucial information, organizations can then build targeted advertising opportunities, sales plans, and product promotions for their consumers.
Branches of marketing that are benefitted through a marketing analytics or marketing analyst are:
- Brand Perception
Here’s a in details explanation on how some of these branches are enhanced through a marketing analyst.
Any business is always about the requirement to be met on the end requirement or business needs of a customer. If a consumer need is unmet then it will lead to dissatisfaction. We need to analyze whether the requirements of a consumer can be accomplished. Google analytics/trends can be used to trace the progress, and based on the results, necessary feedback can also be implemented.
The activities of the business should be monitored. In this process, there should be constant surveil in trends like whether the particular trend in the business is moving upward or downward or stagnant.
The market size is another crucial factor. It is important to be considered as any business can jump to conclusions without considering this aspect. According to the size, a business can segment the market into small, medium, and large.
Big data helps market analyst gain a better understanding of their customers and market size. The more market analysts know about their size, the more they will be able to optimize spending and improve the user experience.
The primary focus here is to identify our competitors, we should identify our current position concerning the competitor and it is recommended to do a Swot analysis to find out the region of weakness of the competitor, strength, threat and we should be able to overcome that.
If we could analyze and estimate the price that the customer is likely to pay for a new product or service pricing, analytics comes into picture. Provided with historical purchase, behavior, and leads data, businesses can understand exactly what customer needs are, in better way. We should also check whether there is a product fit for the end-users and another consideration would be the current market trend and its sensitivity.
b. New Customer Acquisition:
In any business, the addition of new customers helps us to gain a better position in the market. There are various metrics to determine this such as –
- Customer Acquisition Cost
- Marketing Percentage of Customer Acquisition Cost (CAC)
- Lifetime Value Prediction (LVT)
- Ratio of LTV and CAC
- Where the market originated
- Marketing Influencing percentage
Using the provided data about the customer behavior, a business can either upsell or cross-sell or combine both to raise the profit.
Upselling: If a consumer chooses to buy insurance of saying premium 10K every quarter- the business agent can recommend the features or end benefit for a high premium of say 25K instead of initial payment and then make the consumer go for a higher premium from the decided premium they wished to buy.
Cross-selling: If some of your consumers purchases a life insurance policy-X and later buy an accidental insurance policy- Y within 3 months, then you can endorse an accidental policy while purchasing the insurance policy itself.
Businesses use churn analytics to determine the rate at which the customer is likely to quit the product, service, or site. This section of the analytics, need answer for the following questions
- Are we losing buyers? What is the reason?
- If the business tries to rise certain attributes such as price or reduce the service provided. What is the likelihood that the consumer would churn?
The solution to these questions can be determined by using a machine learning model such as Logistic regression, Random Forest, Linear Discriminant Analysis.
b. Customer Lifetime Value (CLV):
It is nothing but the estimation of the net profit attributed by a single customer over the entire journey with the business. while CLV is as an asset to any business, retention rate is another primary factor which needs to be considered. The ability of the business to retain its customers, it is the technique implemented to retain the customers by taking necessary actions to avoid churn.
Implementing such marketing analytics or hiring an analyst in an organization, risks can be significantly reduced because decisions will be made based on data, not merely any assumptions or random guesses. It permits the business owner to make more strategic planning, business decisions in a legitimate and informed manner.