data analytics in digital marketing

How does data analytics impact digital marketing?

The business landscape is very dynamic – every time your customers interact with your brand, they want a special experience. Something more relevant, something more updated and personalized on every interaction. If they are not happy with you, they will move on to the next solution provider. With data analytics in digital marketing, your strategies will bear that “secret weapon” in this cut-throat competition.

Data analytics in digital marketing

Marketing had always been about catching clues from customers’ behavior and designing relevant offers. However, data has brought in the required accuracy.

Earlier, marketers had to depend extensively on guesswork. But that isn’t so anymore. Data analytics gives marketers the power to answer super complex queries with a little more ease and confidence.

What is data analytics?

Data analytics is all about getting meaningful insights from real-time data. Starting from collecting the raw data, analyzing it, presenting it for understanding trends, and drawing conclusions,  everything is a part of data analytics.

Before proceeding: Know the data analytics challenges businesses face

Let us now see the impact of data analytics in marketing.

5 primary impact areas for data analytics in digital marketing

1. Gain customer information

Customers are a businesses’ lifeline. But, what is the lifetime value of a customer?

We spend a lot of time, energy, and money on gaining new customers and retaining them. So, this should be justified by the income received from the customers. A company is profitable only when its lifetime value is more than the amount spent on them.

Thus, for higher returns, retaining a customer for a longer span is imperative.

But how do you do that?

customer life cycle

By understanding the exact needs of your customers using data analytics.

Data helps you understand your customers, what keeps them engaged, and their shopping patterns. By blending data analytics in digital marketing, you cangather and fuse data from every possible source like websites, chats, in-app browsing, social media channels, CRMs, and online or offline stores.

Thus, compile all the required information about each of your customers. Using the same data, you can further build enhanced and robust intelligent tools to serve their needs and retain them.

The best way to achieve this data related to your website visitors is to setup a Google Analytics account using the best industry practices.

2. Build customer relationship

Like always, your products and services still play a vital role. But, how well you can connect with your prospects decides on their loyalty towards you. It’s crucial to make your customers feel valued and reciprocate to them with solutions to their hitches. Once you have your customer database, connecting with your customers becomes a cakewalk.

customer relationship and data analytics

Data helps you in segmenting your customers and designing personalized communication to target them at their touchpoints. The personal touch in marketing strategies and value propositions wins customers’ loyalty and builds better, long-lasting relationships.

Companies are paying more and more attention to customer analytics, i.e., analyzing customer data. More than half of the enterprises have also enjoyed a substantial increase in customer retention and loyalty by implementing analytics.

3. ROI Optimization

One of the best impacts of data analytics in marketing is increase in business ROI. Let’s see how.

More loyal customers mean more business and better ROI. But data analytics doesn’t stop there. While it helps you connect better with your customers and measure the efforts, it also allows you to find out the failed campaigns.

roi optimization

In fact, finding out the grey areas is more important as they let you know which techniques you should avoid in the future. Moreover, data analytics arms you with real-time data. So, you can take real-time actions and make prompt adjustments in your campaigns.

A Forbes article reports that analytics has helped 44% of organizations to gain new customers and generate better ROI.

Find out: The correct set of digital marketing KPIs to track

4. Future predictions

We won’t exaggerate if we say data analysts are today’s businesses’ data-driven fortune-tellers!

When your marketing team analyses the data available with them, they also prepare you for predictive analytics. The past data trend helps you understand what to expect, from where to expect, and when to expect.

For instance, when you study which content holds the maximum audience on your website, you precisely know which type of content to write in the future.

data analytics in marketing for future predictions

Similarly, by studying the market data and your competitors, you can predict future trends. And social media can massively help your data analytics in digital marketing.


Look at the emerging trends – what your prospects are speaking about and sharing online, and forecast inclinations and patterns of the upcoming ‘big thing.’

Having said that, the true impact of data analytics in marketing can be seen when the data collected is in the right hands. While you invest in data, make sure to invest in analysis, too. Only then, the most relevant data can be used to design the appropriate marketing strategy.

5. Competitive Advantage

Data empowers you not only with your business information but also your surroundings. As we have seen earlier, the information that you gather about your customers help you in:

  • designing marketing strategies
  • gaining new customers
  • retaining customers through good after-sales service, constant customer gratification, and updated solutions
  • find out the non-performing marketing campaigns
  • focus on the most profitable products
gain competitive advantage in marketing

 And the data you collect about your competitors and the market helps you to –

  • stay updated about the market
  • take real-time actions
  • make changes in your campaigns according to the market sentiments
  • be prepared for upcoming challenges.

In short, data analytics in digital marketing enables you to do your SWOT analysis more accurately. And when your SWOT is done accurately, you meagrely need to follow it and take actions accordingly – nothing can stop you from staying ahead of the competition.

To Conclude – Impact of data analytics in marketing

Geoffrey Moore said, “Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway. You surely do not want to be one of them! So, if you have not started investing in data analytics in digital marketing, you should start it immediately.

According to Statista, as of January 2021, 59.5 percent of the worldwide population were active online users. And this number will grow. As the number of internet users increases, so will data analytics. It’s for you to try out and find the practical impact of data analytics in marketing campaigns.