Digital marketing data is very unpredictable and can take you in many unexpected directions if you’re not paying close attention. Suddenly, you’ll find yourself in a jungle of numbers when you go through performance reports in marketing analytics software and platforms. So, what should you keep an eye on? Which metrics and numbers can help you and your team show how your digital marketing strategy impacts a business’s goals and revenue?
We can’t stress enough how important it is to understand and distinguish between metrics and data insights to respond to these questions.
Although “data-driven marketing” may sound like a trendy term, it represents the biggest advancement over old-school marketing strategies. Digital marketing is the future.
Learn a little about using digital marketing data to your advantage, whether you want to reach a larger audience or improve your return on investment. This blog will explore the world of collecting data and how to analyze it.
Why is Analyzing Digital Marketing Data Important?
Digital marketing data plays a critical role in a digital marketing strategy. Surprisingly, it’s very easy to fall into the rabbit hole of vanity metrics and get a false sense of data analysis that didn’t really contribute to increasing sales or getting new website visitors.
As a reminder, vanity metrics are superficial metrics that give you positive feelings about your business marketing efforts without actually adding any real value.
The only way to distinguish false positives and correctly attribute results is by using the appropriate marketing analytics tools, yet this is frequently difficult for contemporary marketers.
Not only that, but knowing how to analyze digital marketing data helps you make the most informed decision for your business’s marketing strategy.
How to Analyze Digital Marketing Data
Let’s look at some of the finest ways to evaluate digital marketing metrics and understand why they are so important for the success of your business. Learn how to analyze digital marketing data and make the most of digital analytics.
Sales are the first measure to be examined. Although it should go without saying, some of the greatest self-declared marketers fail to consider this fundamental criterion for looking at company sales.
It’s more complex than it may appear to connect your sales to your marketing efforts. Still, without this connection, you can’t tell whether your digital marketing is actually effective or not.
Use a software or application focused on measuring sales data, among other key performance indicators (KPIs), to measure your sales accurately. The goal is to differentiate yourself from the competition and understand the yearly sales rise that can be attributed to your digital marketing efforts.
Social media is a major focus of numerous digital marketing strategies. One of the most crucial indicators to track when examining the durability of your brand and how customers connect with your business over time is social media engagement.
You might want to start by integrating all of your social media accounts into a single, highly-effective social media scheduling program because many of them track engagement analytics for you. This will allow you to measure the engagement rates of your social media accounts.
Customer Retention Rate
Your most significant asset is your current customer base. Therefore, it’s critical to keep them around for the long haul. For any business, knowing your customer retention rate is crucial.
Fortunately, using this measure is relatively simple as long as you gather the necessary data (for example, sales in a given year per customer account or how many discounts or return coupons are used in your system by existing customers). In this approach, you can assess your success in keeping your current clientele and work out how to gradually raise that rate through marketing initiatives like retargeting advertising.
Cost per Click (CPC)
Your target audience reach’s effectiveness is measured by your cost per click. It basically measures the number of clicks you received on a specific digital advertisement compared to the amount of money you spent promoting it.
Almost every form of digital advertising, including campaigns on well-known websites like Facebook, LinkedIn, Twitter, and Google Ads, can have its CPC measured. If your campaign cannot report CPC as a measure directly, you can still get your CPC by counting the number of clicks you receive and dividing that number by the cost of your advertising campaign.
Website traffic is a crucial category in both digital marketing data and website analytics. These are simple to assess with Google Analytics and will provide a clear picture of where your business is going and whether your marketing is aiding in brand expansion.
Use Google Analytics to keep tabs on your website and integrate site traffic data plugins into your website to start analyzing site traffic. These can help you visualize your website traffic and the digital marketing initiatives working the best for your business.
Conversion rates show the proportion of people, like website visitors or audience members, who interact with your ads and ultimately achieve a desired conversion goal. High conversion rates indicate that your marketing strategy and website are working. Therefore, you should carefully pay attention to this metric.
You can use a common equation to estimate your conversion rates.
Conversion Rate = Total Conversions ÷ Total Sessions.
Leverage Google Analytics to determine the number of website sessions and conversions. Find your conversion metric next. Your goal will select your conversion metric. The quantity of orders, form submissions, CTA clicks, downloads, or other conversion metrics is an illustration. Once you have these figures on hand, enter them into the formula above, and you’re done!
Conversion rate is important since it reveals what works and what doesn’t, eventually showing what customers or businesses desire. This will enable you to assess your digital marketing strategy’s performance.
Return on Ad Spend (ROAS)
ROAS refers to comparing the amount of money spent on advertising and the revenue generated by sales directly attributable to advertising. Keep in mind the straightforward rule that you should produce more money than you spend on advertising. This will help you determine whether your investment is yielding the intended outcomes.
Use just the sales data related to the advertising when calculating your ROAS, and then compare it to the total amount spent on all the ads. This helps you in figuring out whether your advertising is actually returning on your investment and whether your current campaign needs any adjustments.
It is clear that for a marketing strategy to be fully optimized, digital marketing analysis is essential. Without the distinct perspective offered by digital marketing analytics tools, you are simply speculating which methods and strategies are the most effective because you lack the supporting data.
Data is At the Core of Your Digital Marketing Strategy
Data storytelling is a primary element, since your data should reflect on a person (an account manager or digital marketing strategist) rather than a list of clicks and digits. Data insights document what people do when managing an account. At the same time, metrics enable you to record the stories most beneficial to your business.
The bottom line is: you shouldn’t let your reports define your personality. We know you’re not boring! So, your reports shouldn’t be. AdClicks aims to display a narrative through your metrics’ performance in account managing for digital marketing campaigns.
Find out how to make your reports more visually appealing and make marketing analytics fun again! Fill out your contact information for someone from our team to reach out to you!
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