With the fast-paced development of the digital platform, there has been an upsurge in the demand for robust digital marketing strategies. Quite inevitably, the online marketing arena is going through a constant evolution. Numerous online marketing strategies are being devised, and innumerable acquisition channels are getting added to the digital ecosystem. However, the success of these marketing efforts depends on marketing performance analytics to a great extent.
Understanding marketing analytics
According to popular definition, marketing analytics encompasses the process or technologies that help marketers in the evaluation of their digital marketing and advertising strategies. Measuring marketing performance with the use of proper analytics helps you gauge the success of your marketing efforts and initiatives.
Marketing analytics draws comparisons between various acquisition channels including blogging sites, paid advertising, affiliate advertising, digital communications, social media, and so on. With marketing analytics, marketers have the perfect opportunity for gathering data from various channels and reinforce them into a comprehensive marketing view. Such consolidated views help you in extracting crucial analytical results, thus offering invaluable aid in taking your marketing efforts to the next level.
Unraveling the significance of marketing analytics
Over the past few years, both businesses, as well as marketing strategies, have witnessed the emergence of advanced technologies. As every new technology got incorporated in isolation, there was a serious hodgepodge in the business data environments.
On the other end, most of the marketing experts considered individual channels while taking crucial business decisions. Individual considerations of social media or website analytics data are not enough. Therefore, marketing tools that consider mere snapshots rather than the actual picture prove to be inadequate. And it is here that you need comprehensive and consolidated marketing analytics. By considering almost all marketing strategies and efforts across channels, over a period, marketing analytics aids in proper business decision-making.
The benefits of marketing analytics
- Gauge the contribution and effectiveness of each channel: Marketing analytics helps in the evaluation and assessment of every acquisition channel. It perceives marketing efforts from the engagement, conversion, and acquisition perspective. It provides visibility and transparency around individual and cross-channel performance and creates opportunities for optimizing your Cost per Acquisition and Channel ROI. By knowing which channels perform better as compared to others, marketers can allocate their budgets more wisely.
- Get insights for optimizing marketing campaigns: Marketing analytics allows the digital marketers to do advanced analysis and identify their most and least profitable customers, improve their customer loyalty and impact their bottom-line. It offers transparency and visibility around both cross-channel and individual performance. Additionally, marketing analytics helps in optimizing channels, content, and design.
- Add context to the declines and surges in various trends: Marketing performance analytics helps you find out the latest marketing trends with respect to your digital marketing initiatives. You can identify those trends and benchmark them or create alerts to know about any significant anomaly and ensure course correction before it is too late. For instance, by studying the change in keyword frequencies over a period of time, you can identify and predict trends in customer behavior.
- Identify opportunities for targeting and advanced analytics: Marketing analytics provides actionable audience segments for targeting and personalization. By allowing digital marketers identify their target audience, marketing performance analytics helps in the segregation of potential customers. As the result, business owners can create marketing strategies that strengthen customer loyalty or nudges them further in the conversion funnel.
- Identify opportunities for testing and optimization on the campaign landing pages: One of the most important uses of marketing analytics is to test the campaign landing pages and improvise to generate better results in future. A/B and Multivariate testing of digital marketing campaigns and the respective landing pages can point out the variations of design and content mix that generate best results for you.
- Marketing analytics can help optimize other business processes: Marketing analytics would not only help you with generating better marketing results but will also benefit your entire business. For instance, by monitoring the keywords your customers are searching for, you can know exactly what features or services they need from your business. Continuous monitoring of customer sentiment can clearly help companies in improving their products or services.
Metrics to track
There are quite a few digital marketing analytics metrics worth considering here. Let us have a look at what famous author and entrepreneur Dave McClure has to say about these performance metrics. Prolific digital marketers can assess, track, record and utilize these metrics according to their marketing demands:
- Acquisition: The first metric worth considering in this regard is the acquisition. It refers to the number of active visitors responding to your digital marketing efforts by visiting your website.
- Activation: Activation refers to the number of satisfied customers during their first visit to your business website.
- Retention: It is one of the most crucial digital marketing metrics, as it refers to the visitors returning to your website after the initial visit.
- Revenue: It involves customers who take action, thus generating revenue.
- Referral: Satisfied customers will inevitably refer your dream venture to others. These references provided by your customers will generate leads and result in positive recommendations.
By now, we know the importance and significance of marketing performance analytics. But, In spite of these undeniable benefits, a major portion of digital players fail to realize the advantages of marketing analytics. As per a survey of senior marketing executives published in the Harvard Business Review, “more than 80% of respondents were dissatisfied with their ability to measure marketing ROI.”
Marketing performance analytics aims to highlight opportunities for perfect product development, brand awareness, and customer satisfaction; however, it is equally important to act upon the analytics as it is to identify those insights. If performed in the correct manner, marketing analytics will fetch you huge revenues and loyal customers, thus making your digital marketing efforts highly successful.