11 Reasons Why Data Analytics Is Important in Marketing

Being data-driven is the secret spice to improve the quality of your products and services to keep up with the changes in the world of marketing. Data-driven marketing enables businesses to gain insights into the preferences, tastes, behaviors, and habits of their audience and then tweak their conversion rates a little to make them better.

Wondering why Data Analytics Is Important in Marketing?

Data analytics is important in the field of marketing because it gives you an insight into past trends, allows you to understand the current market better, and also helps you to predict and make informed decisions about the future marketing strategies in ways where success is more likely to be achieved.

Today, no matter what is the size of your business, large or small, it is crucial to learn about your customers’ purchasing behavior. Investing in up-to-date techniques might appear daunting in the beginning, but there are a number of things to be gleaned from data analysis.

Based on the current situation of marketing, the Co-founder of Paypal, Max Levchin once rightly said:

“The world is now awash in data and we can see consumers in a lot clearer ways.”

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The 11 Reasons Why Data Analytics Is Important in Marketing

Knowing your customers 

If you take a closer look at the data that your company generates, you will find out many secrets about your current and potential customers. With the help of data analysis, you can uncover the intent of your consumer. 

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Output Control in Strategic Management

By having proper insight and actionable information, your marketing and sales teams, both can accomplish their goals. When you find out who your customers are you will be able to understand what motivated them to behave the way they do. 

Gaining cross channel visibility

To interact with any brand is no longer confined to just walk into a shop and check a product. Social media engagement, website visits, and email communications, all combined together create a complex picture. 

However, to keep a track of all the tiny to large details can be quite challenging, especially in this era when an average online user has almost six to eight social media accounts across different applications. Here, using data analytics can be seen as the sole way to turn the broad spectrum of touchpoints into a cohesive customer profile. 

If any brand succeeds to achieve it, they can provide a high quality and uniform experience to their consumers irrespective of the channel used to reach the business. 

Knowing the channels

One of the main benefits of data-driven marketing is that you get greater visibility along with knowing what channels are working and what channels are not working. 

Prior to this digital age marketing, it was hard for the marketing teams to guess which of their efforts are contributing significantly towards a purchase. They did not know if the promotional campaign caused any uplift in their sales or it was just a coincidence.

But now, by bringing data analytics into play, marketers can track customers along the journey from start interest to the final purchase. The insights are generally driven from the website cookies and click-through rates which make a clear picture of what is working and what is not. This way they can prioritize the expenditure in the right channels. 

Better targeting

Applying data analysis can help you to find out what forms of advertising reaches your consumers effectively and puts an impact that makes them buy your products. Data will enable you to get the know-how of what methods of advertising have the biggest impact on your target audience and at what scale it will be useful to adopt such advertising. 

Manage your finances

By practicing data analysis, you can smoothly and effectively run your business. You will be able to determine the sector of your marketing business that is using unnecessary finances and the area that requires more financing. With this, you will have a clear-cut idea of where you need to reduce the costs and the technology that you are going to use to reduce the production and operational costs. 

Data analytics is important in Marketing

Knowing the goods to produce, advertisements to use, and the customers to target offers a great advantage of managing the costs that would otherwise be utilized in unnecessary activities.

Analyzing your data will make every action precise and straight to the point to avoid extra money utilizing things that have no value added to the business.   

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Personalize customer interaction

Know that businesses have access to more information such as the gender, geographical location, or age of their customers than ever before, they can derive more detailed insights based on consumer behaviors. 

Today not only customers are becoming more open towards sharing their data, they are encouraging it to receive personalized marketing. Therefore, many brands are personalizing their markets to gain fantastic ROI. In this way, the customers feel like they are valued not as another number on the spreadsheet but as a unique and important human being.

Get accurate data

Data analytics is also important to obtain accurate data to make smart decisions by a business. With relevant and accurate information, obtained through data analytics, everything gets seamless. Having the access to accurate data can help you to determine these:

  • The strong and weak points of your company
  • The best business solutions to solve challenges
  • To create a better and innovative sales
  • To strengthen the company values

Enhance lead generation

A company potentially spends a good deal of resources on hunting down new leads. Without accurate and relevant data, all the lead strategies are shot in the dark.

Wasting time of the workforce to plan can cost your company dearly. But, by practicing data analysis you can bring the lead generation of your marketing business to the next level. More the leads, more the revenue, more the profit. 

Promotes transparency

If the data of your company is rightly visualized after analyzing, the employees can easily access it when required. In this way, transparency will help you to build trust and give your employees a feeling of working with an ethical firm. Also, transparency ensures more engagement and gives a vision to the company. 

Helps to solve the problems

Even the smallest problem arising in business can cause a major halt in the operation which can cause a loss. Data analysis assists the business to make an informed decision to run the business smoothly and to avoid any occurrence of loss. 

Analyzed data is needed to detect a malfunction in the business system or can show any problem in the production of quality and quantity. 

Make better digital marketing strategies

Data analytics can help your business to plan better digital marketing strategies by giving you a relationship between past and existing data to make it more effective. 

You can also determine online user behaviors and the buying patterns of your consumers for audience segmentation and category design. Where audience segmentation is to classify your target audience based on their interaction with your business and category design means to introduce a new product or category. 


There is a lot that can be done with the help of data analysis to run the operations of your business smoothly and effectively. The above-mentioned reasons may compel you to adopt data analysis technology to catch up with the world. 

Businesses today are fully aware of the fact that their customers are only a click away from shopping somewhere else. Therefore, making a well-developed marketing strategy is the key to sustain the business and success in the highly competitive and evolving business world with the help of data analytics. 

As Geoffrey Moore says;

“Without big data analytics, companies are blind and deaf, wandering out onto the web like a deer on a freeway.”

What is the importance of data analytics?

Data analytics helps organizations to harness their data in order to identify new opportunities. It also helps them to make smart business moves, and make their customers happier than ever along with gaining high profits. 



Emidio Amadebai

As an IT Engineer, who is passionate about learning and sharing. I have worked and learned quite a bit from Data Engineers, Data Analysts, Business Analysts, and Key Decision Makers almost for the past 5 years. Interested in learning more about Data Science and How to leverage it for better decision-making in my business and hopefully help you do the same in yours.

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