Our recent blog post took a look at why you need marketing analytics and how it can help you streamline your marketing efforts. Here, we’ll explore what kind of data you need to study and how it can guide your marketing decisions.
Let’s consider what kind of data you need to mine from marketing analytics.
Website Performance: What to Track
You will have visitors coming to your online store from many different places, like Facebook, Twitter, blog, email links, organic search, Google Ads, etc. Website Analytics will not only help you indentify which channels of incoming traffic are leading to conversions (ie sales), but will also provide a large amount of valuable data like conversion rate, lifetime customer value, and cost per acquisition.
These figures can give you meaningful insight into what is performing effectively and what isn’t, thus helping you to decide how to allocate your marketing budget across various channels.
Sales: What worked?
Focus on actual sales and conversions on your website. Go as far back as possible in users’ behavior to track down the path of clicks from how they entered to your online store all the way up to actual sales. Did a click from a text ad on Google search bring the sale? Or was it a link on Facebook? Maybe discount coupons in emails led to terrific sales!
Find out everything you can about what worked. If you compile enough data, you will start to see trends and be able to identify which channels work better than others in bringing in sales. You will also find out what kind of products the user was interested in and you can target your ads accordingly using remarketing tools. (Read more in our blog post covering remarketing).
Offline and Online Metrics: Consider Them Together
If your marketing strategy includes both online and offline marketing, it is important to ensure that the data record does not get interrupted in-between. So, for instance, if you advertise in a local newspaper or you give out leaflets with discount coupon codes on it, it is important that you keep records of these channels so that you can later combine both the online and the offline records to get a holistic picture of how well your marketing efforts are creating conversions on your online store.
There are many ways of doing this. For instance, in the case of discount coupon codes, create a separate coupon code for different channels, e.g. your Facebook ad can have the code FB123, while the code in your emails can be EM123. You can then look at the records of which codes were used to get an idea which channel was more effective in bringing in sales.
Vanity Metrics: What to Avoid
There are lots of metrics available that do not add any meaningful insight into what helps the bottom line. But easy availability of these metrics makes it very easy to get distracted by them. These metrics are called Vanity Metrics and they include elements like page views, time spent on site, number of pages visited, etc. These numbers do not add any value to your marketing strategy and are best avoided, to save time.
Social Media: Keeping a Bird’s Eye View
If there are any social media networks, like Facebook or Twitter, that you use to market your online store, it is important you use marketing analytics tools to keep a bird’s eye view of your performance there. You need not pay attention to every single like and share, but it is important to know where your audience is coming from whether the network is leading to website visitors and especially buyers, the demographic breakdown of customers who found your website through social media, etc. There are many tools that can make it easy for you to access this data, e.g. Google Analytics.
We will provide more in-depth information on various tools that can help you get the right Marketing Analytics data in our next post in this series. In the meantime, you can start identifying the most critical types of data you are going to need with regard to your own marketing efforts. Watch this space for more!
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