Analytics is the holy grail when it comes to digital marketing.
Back in the day, traditional marketing strategies were built on benchmarks and assumptions–even with metrics such as impressions from TV broadcasts and radio, return on marketing investment (ROMI) could only be assumed from benchmarking industry standards, or deriving from a small market research sample.
In the digital world, the greatest asset to a digital marketer is measurable and track-able metrics. There is an abundance of data, ranging from clicks and impressions, to pageviews and bounce rates, that truly tells a unique story when combined with the context of marketing strategies and targeting scopes. Aside from the common default information given, digital marketers are capable of customizing the metrics that they would like to track such as medium sources through UTM tracking, sales through e-commerce goal tracking, and end actions through conversion tracking. With this ability, ROI is no longer a benchmarked number, but an exact percentage down to the smallest decimal.
With such a large overwhelming quantity of data, how on earth does a digital marketer know what to focus his or her attention on? The core element of any measurement model is Key Performance Indicators (KPI). These are derived from client information– breaking down their business and drilling down their goals until the very reason for their existence is apparent. Once the digital marketer understands what to look for, it’s simply understanding the metric that will truly reflect this goal’s performance in order to indicate positive or negative performance based on set parameters.
Next is the importance of reporting. This process requires consistent, gradual improvements until significant insights are presented in a comprehensive and concise manner. Data exports are just exports until segmented, drilled down, sliced and diced (if you will), to reach a conclusion and understand what is ultimately indicated.
Plan of Action
Finally, with all of this said and done, the greatest benefit for us as digital marketers to have diverse data information at our fingertips is the ability to plan the next sequence of actions that align with the core business goals based on the indications shown by the data. The best of the best can even forecast expected business impacts on proposed actions. By being well informed, any business can benefit from these insights in optimally growing their business.
In the world of digital marketing, analytics is king. This provides the most significant advantage that digital marketing has over any other forms of marketing, so don’t take it for granted. Export, analyze and gain insights. Form plans of actions and lead your clients on the road to success.