Importance of Business Intelligence in Digital Marketing
In this digital age, the role of Business Intelligence in digital marketing is very important. Companies can now adjust to customer needs, reduce costs, and improve sales thanks to BI tools. It also enables a data-driven decision-making process. Thus, they can carry out optimized marketing campaigns.
This is why most companies are investing a lot of money in these BI tools. In this article, we will discuss business intelligence in digital marketing.
Table of contents
- What is business intelligence?
- What is the importance of business intelligence in digital marketing?
What is business intelligence?
Business Intelligence (BI) is a technology-oriented and strategy-based process for collecting and analyzing business data. Through this, businesses can extract and process a large amount of internal and external information. The source can be both current and historical data. These insights will enable better decision-making and provide a competitive market advantage.
This system first combines data collection, data storage, and knowledge management. Then it analyzes the data and does the evaluation. Finally, it converts the complex set of data into coherent and actionable information. In other words, you can achieve an easy interpretation of complicated data. This information will give you effective and operational insights for strategic decision-making.
Surely you want your business wishes to gain long-term stability. For that, you have to identify new opportunities and adopt strategies that work. BI tools can present a proper view of the different behaviors of different business operations. The data might be structured or unstructured. Regardless, these BI technologies can process it all. Then they can identify, develop, and give life to new business opportunities.
What is the importance of business intelligence in digital marketing?
The importance of business intelligence in digital marketing is immense. Through this, marketers can gain detailed insights into customers’ preferences and behaviors. Moreover, you can keep track of customer purchases. You can also view the sales statistics for various types of products. Thus you can optimize your marketing campaigns for a target audience.
As a result, you can create a more customized environment for your clients. This kind of campaign will be more effective for your business. Now let’s take an in-depth look into the benefits:
Business Intelligence in digital marketing for streamlined decision making
Your decision-making process will be based on data through BI. Before the era of digital marketing, it was quite difficult to make well-informed decisions. The reason is the lack of data. Without this data, carrying out successful marketing campaigns was also a challenge. It was something more or less dependent on guesswork.
But this kind of uncertainty is no longer a thing, thanks to BI tools. Every choice you make while running a business can have a huge butterfly effect. As in, it can impact the future of your business in ways you can’t predict. But that’s only when you are choosing without using data as the base of it. Business Intelligence in digital marketing will provide you with the necessary data. So you can make smart decisions accessible to the key stakeholders.
Moreover, BI tools can help you collect and arrange data from many online sources. The data can include click-through rates, social shares, and keyword searches. These are all helpful data that BI tools can gather for you. Through this, you can determine the best online marketing channels for your business. You can understand which tactics are gaining the best traction.
Thanks to all these BI tools, you can now boost the marketing function of your business. Enhancement of sales information visibility is easier than ever before. They will help you pose the required questions in a precise way to a large set of data. Then help you define the KPIs that are most relevant to your current business goal. You can keep track of competitors and set benchmarks against their performance.
As a result, you will be able to make all the right decisions to fine-tune your marketing campaigns. Adverity is a popular tool used by many businesses worldwide. It can help you gain a wide range of digital insights. You will also be able to identify the most likely strategies to get you better success rates.
Business Intelligence in digital marketing for improvement of customer experience
If you Introduce BI to your digital marketing strategy, you can learn how to tailor the marketing to suit your customer’s needs. In the present world setting, marketers compete over providing the best customer experience. Customers, too, are crowding to where their needs are being cared for the most. In fact, a report from Accenture proves that one-third of the customers expect the companies they engage with to know more about them.
So you must focus on this for better customer engagement and sales. For that, you have to know your customers’ behavior, desires, preferences, and requirements. Business Intelligence will help you here by providing you with the necessary customer insights. You will be able to divide your customers into segments and attract the right type of prospects.
Let’s make this clear with an example. Every customer has their own preferred channels. Some might choose to look at your product details from your business website. Others would rather check reviews on social media. Some might rely on email campaigns. Others may be attracted to the advertisements. BI reports can show you a neat pie chart of what customers prefer which channels.
Hence, you can understand how your customers are interacting with your products. You can get an idea of what key points are making them buy your products or become a lead. You can use these detailed insights to ensure a more personalized customer journey. A relevant and timely campaign tailored to the customer’s needs and preferences will be created.
So you can guess how business intelligence in digital marketing will benefit you because you will be able to reduce Customer Acquisition Costs (CAC). You can also receive better customer engagement. Moreover, BI tools will help you automate tasks and create an optimized workflow. This will not only improve processes but also increase business productivity. All of this will come together to improve your sales and your customer’s experiences.
If you know your customers and you know that they are expecting a better customer experience in addition to marketing, then Conversational AI: A smarter way to talk to customers can be a way to go.
Role of BI in digital marketing campaigns with better success rates
You want to conduct a successful digital marketing campaign. So you need to send the campaigns to the right people at the right time. Not only that, but you also have to do that through the right channel. You can only achieve that by analyzing the data of your demographics in a thorough way. Then you have to get a precise understanding of who exactly your target audience is.
But because of the huge amount of demographic data, this becomes quite a difficult task. Because of this, many businesses tend to ignore this crucial point. Later, they suffer a great loss in revenue. There is also the scope of making many mistakes in the identification. Wrong identification means you target the wrong people. Which again means the campaign won’t be successful.
This is where Business Intelligence in digital marketing becomes crucial. BI lets you organize your data into a multi-channel stream. This helps you build efficient marketing strategies. The solutions can collect different types of consumer data from every available source. After collecting, you can get a dashboard view of all the demographic stats. You can also dive deeper! Get insights into the purchasing habits, pain points, preferred products, interaction models, and such.
And that’s not all. There are also BI tools for tracking and analyzing campaign performance in real-time. BI reports use dashboards and visualization tools to give you this information. For example, the unsubscribing email rate, website traffic-to-leads ratio, MQL to SQL rates, returning visitors numbers, and such. A comparative picture of the results with various historical patterns will come.
You can monitor your marketing efforts and measure their effectiveness. Then you can find room for improvement. By either withdrawing or realigning your marketing strategies, the measurement of effectiveness will go uphill. Furthermore, you will be able to optimize your marketing budgets accordingly. The reports will also tell you whether you need to funnel promotional activities showing good results.
All of these will help you build a successful marketing campaign. This makes business intelligence in digital marketing so important. Most campaigns fail when the business fails to identify its target audience. Sometimes they don’t even know what KPIs they’re aiming for. But using BI, you will know what to enhance or what to eliminate from past strategies. As a result, you can avoid wasting your funds on running useless campaigns.
You can also optimize your performance. Simultaneously, you can predict future opportunities that will help your organization adjust production and marketing processes. You will be able to execute your best-selling and cross-selling campaigns effectively.
Role of BI in digital marketing through real-time and predictive analytics
The data flowing through the internet is subject to constant change. This change can happen daily. This is why there is no second-guessing the importance of real-time data analysis. It can provide fresh data for your marketing campaigns. Then it can eliminate extra costs and improve marketing performance.
Furthermore, you can monitor and market across multiple channels. A tool called Klipfolio serves this purpose. By using this monitoring tool, you can get real-time information. See what’s happening at the moment. You need to have a full grasp of the ever-changing information. Then you need to take the appropriate actions as soon as possible. For that, this kind of monitoring tool will be very useful.
So it’s another plus point of having business intelligence in digital marketing. You will know when and where you should increase or decrease your ad expenses. According to a report, around 52 percent of customers prefer an immediate response to their feedback and different queries. This is another great benefit of real-time data analysis. Your company will be able to reply to all kinds of customer queries in real-time. This will give you additional satisfaction points.
Again, the data you gather from real-time analytics can help you create content. It is not just any kind of content, but one that appeals to your target audience. You will be able to understand who your target audience is and what they want. Then structure the marketing campaign accordingly.
And once you start getting leads, you can use other BI tools to guide them through the sales funnel properly. These tools will also help you analyze the interactions and realign them. You will do it in a more suited way for a personalized customer experience.
Another role of Business intelligence in digital marketing is through predictive analysis. Its job is to predict the possibility of a prospect converting to a customer. Predictive analysis uses the collected information to conclude possible future outcomes. This is done through algorithms and machine learning techniques.
The historical data is then fed into a mathematical model. This model takes into account the key trends and patterns in the data. After applying it to the current data, it can predict the future. By doing so, you will be able to influence your business outcomes in many different ways. Having an understanding of what the customer’s next actions will be can be so beneficial. You can make decisions that will impact the business’s bottom line.
Thus you can decide on the prices and discounts on your products and such things. However, if you want to get the best results, the data quality has to be high. Without high-quality data, you can’t get the most out of the predictive analysis. In this case, BI tools can enhance the marketer’s level of work from planning to delivery.
In conclusion, business intelligence in digital marketing has boundless importance. It allows decision-making based on factual data. You have to choose BI tools that best define your business strategy. Only then you might see your desired results and take your business a long way.