Underestimating the importance of marketing analytics is something that you can do only at your own peril! With the world increasingly going digital with a whopping 4.8 billion individuals on the internet as of July, 2021 (60% of the global population), creating a solid online marketing blueprint is a must for any business. However, how do you know whether your marketing campaign is performing as expected? How do you find out whether it is actually permeating the target audience and bringing in the desired conversions/revenues for your business? This is where the importance of analytics in digital marketing comes into play.
Why marketing analytics is important is because data access is what helps businesses tap into these insights for coming up with better strategies. Digital marketing analytics refers to analyzing, gathering and studying data that comes through marketing campaigns. These seek to understand patterns like customer usage or behaviour, what contributes to higher conversions, regional and national customer preferences, personalized or individual factors, purchase triggers and more. A thorough understanding of these patterns is what can help any business tailor its strategies and operations in order to achieve maximum conversions and revenues as a result.
The importance of digital marketing analytics and their tracking
Tracking your digital or web marketing analytics is crucial for the following reasons:
- Better customer understanding- Data is what helps you gain valuable insights into your targeted consumer audience. For example, you can make use of data from customer behaviour and demographics to work out the best methods of getting customers to convert into paying customers. Demography-related data offers an easier view of the personas of target customers including their geographical locations, ages and also their interests.
- Industry-wise predictions based on data- It is always possible to view current trends via data analysis and come up with industry predictions. Predictive analytics will enable better decision-making that is driven by data. Businesses can readily work out what they wish to market, to whom, and at which time. It becomes easier to work out when demand will be the highest for your specific products or services. You can suitably position products or services accordingly at these favourable times. This will contribute substantially towards overall growth and development.
- Optimization of digital marketing campaign results- You can implement data analysis of your digital marketing campaigns and work out the interactions of your target consumers with your campaign. This will help you boost marketing campaigns through tweaking your frequency, messaging, marketing channels, and so on with a view towards better optimization. This will give you an idea of where you should invest more for superior returns.
- Boost personalization in your marketing efforts- One of the best ways to draw more customers and retain them is the personalization of marketing campaigns, messaging and overall customer engagement. Digital marketing-driven analytics and their proper tracking are recommended for exploring the ways in which consumers behave in various market categories and their likely responses to various offers, incentives and more. This will help you tailor your offerings as per the marketing/delivery channel while changing offer timings for meeting the preferences of your target audience. Such tweaks are highly recommended for making the most of your interactions with customers.
- Key metrics for tracking- Tracking key digital marketing analytics like brand visibility, the conversion rate (how much paid and organic traffic you are getting from and how many of them are converting to paying customers), frequency of visits, the number of days to final transactions, website insights, and customer engagement on social media platforms and forums will help you quantify the ROI on your campaigns and understand where you are going wrong or what you are doing right.
Some other metrics include pages per visit, average visit duration and bounce rate which are dashboard metrics. You can also find data on most viewed and most exited pages, websites that are referring you, results of affiliate marketing/sales campaigns and more. Naturally, tracking these digital marketing analytics will help you understand consumer preferences, conversion/buying habits and their ways of interaction with your brand. It is only through regular tracking of these metrics that you can keep fine-tuning campigns. After all, once you invest sizably in any campaign, you should focus on generating optimal ROI from the same. Hence, the importance of proper tracking cannot be underestimated.
Hence, as can be seen, implementing and tracking marketing analytics is non-negotiable. This will help you keep optimizing and tailoring your campaigns as per evolving consumer needs and preferences, helping you scale up conversions, revenues and overall customer engagement in the bargain.