What is Digital Analytics for Marketing
What is digital analytics for marketing
The digital world has come a long way in the last decade. However, today’s businesses have to be digitally savvy if they want any chance of success.
For many companies, this can seem like an uphill battle. With so much going on, it can be hard to keep your head above water. That’s where digital analytics comes in!
Digital analytics is all about analyzing data from various sources – everything from social media posts to website clicks – to learn more about your customers and how you can better serve them through your marketing efforts. This post will explore just what digital analytics is and why it is so important for your marketing efforts.
Digital analytics provide you with information on how people are engaging with your content and visiting your website, their interests, where they come from, and much more. Although no two businesses will use the same data practice to learn about their customers, there are a few important things that you should know.
Digital Analytics focuses on connecting points between customer and business properties. It includes traffic metrics, campaign performance to assess a company’s marketing effectiveness.
Business analytics helps companies improve their decision-making processes by focusing on operational metrics (processes) and stakeholder interactions while optimizing business functionality using web & mobile user behavior data.
Why is Digital Analytics Important?
Digital analytics is an integral part of any digital marketing strategy. However, it shouldn’t even be considered separate from your overall marketing strategy. You are missing out on a huge opportunity to put data to work for your business if you do!
Digital Analytics is important to help businesses solve some of their problems. For example, they allow companies to improve efficiency and optimize customer experiences by providing accurate website/mobile app performance and user behavior analysis.
Let’s look at some of the specifics.
Digital Analytics helps with decision-making.
By using Digital Analytics to track key metrics, you can get an accurate picture of the effectiveness of your efforts and campaigns.
Digital Analytics is important for making website improvements. Whether digging deep into user behavior or taking a more basic approach by tracking website traffic flows, site metrics are essential in understanding what’s working and what’s not on your website.
Digital Analytics is essential for cost-cutting efforts. It helps you identify areas you need to cut costs, whether by eliminating low-performing marketing campaigns or optimizing your website and online resources, which is the first step in improving your bottom line.
Digital Analytics helps answer what customers want.
It can be a challenge to determine how your customers are interacting with your brand with all the available data. Conducting market research and tracking metrics can help you get ahead of the competition by knowing what your customers need before they do.
By creating a tailored experience for your customers, you can not only drive sales but stay ahead of the competition as well. Marketers are well aware of the importance of optimizing customer experiences to gain market share in today’s competitive online environment.
In fact, according to a recent study by Forrester Research, “marketing leaders say that they need more insight into customers and channel partners to optimize experience.”
Growing and optimizing your business by supporting data-driven marketing.
Today, marketing is all about reaching potential customers at the right time and in the right place. Digital analytics enables marketers to engage with prospects on their terms throughout the customer lifecycle — from initial contact through brand awareness, interest, purchase, advocacy, and beyond.
The data you collect could be integrated with another marketing platform for more in-depth analysis and help marketing tools execute and optimize better.
A good example of this is integrating user behavior data through a web analytics tool with customer profile data in CRM. Knowing who is doing what and how engaged with your brand is key to digital analytics and data-driven marketing.
For many years, personalization has been talked about by creating relevant, timely customer experiences that match both user behavior and business goals. Marketers want to understand their customers and deliver personalized and rich experiences in an omnichannel world.
Personalization would be supported by data and the capabilities within the digital analytics domain.
Common Digital Analytics related services
Tools like Google Analytics or Adobe Analytics are used to carry out digital analytics, which comes under web analytics.
Web analytics provides data on how many visitors visited your website, the pages they liked or visited, where they come from, and more information.
Tag Management service
A tag management service is used to monitor the usage of all types of tags on your website. Tags are snippets of code used by marketers for various purposes like remarking, measuring conversions, and more.
Google Tag Manager or Tealium is a tool that helps you implement these tags effectively on your website.
The skill sets required for tag management are different from analytics skills. Managing tags is a challenge for marketers, from effectively defining tags to deploying across the web properties.
BI is important for marketers to make informed decisions on various elements like different digital campaigns and traffic sources.
An analyst can share the marketing performance data collected by digital analytics with the marketing team through a business intelligence tool in visualizations or dashboards.
In addition, the information can be presented in the form of tables, charts, graphs, etc. These tools will help marketers to monitor and optimize their digital campaigns regularly.
CRO (Conversion Rate Optimization)
Using marketing data and analytics, marketers could practice CRO to improve conversion rates for their digital campaigns.
CRO requires integrating various skills; marketers might need data analysis skills to identify the buying process’s pain points and optimize those areas.
It requires knowledge about different tools like Google Analytics, heat map tracking, usability testing, etc. The conversion rate optimization is time-consuming compared to other processes, but it brings better results for the company.
Commonly known as A/B testing, a CRO practice requires individual assumptions to be tested against each other for determining which variation performs better than the other.
As a result, CRO helps marketers learn more about what makes people buy their products and what doesn’t. In addition, data from A/B testing allows marketers to drive their digital initiatives towards better results.
PPC Optimization for Paid Search, Social, and Display
Performing digital analytics for paid search, social, and display networks helps understand the high cost-per-click and what drives more traffic to the website.
Using this data, marketers could tweak their budgets to spend more on areas, driving traffic and leads.
Running multiple campaigns at once might lead to a proper comparison of PPC. Campaign optimizations help marketers to optimize their budget and spend more on areas where it is required. And digital marketers approach vendors who offer technology, tools, and expertise to optimize their ads and have the best-performing campaigns.
One of the most important digital analytics tools for PPC campaign optimization is Google Analytics. Google Analytics gives marketers an idea about the source of traffic, mediums, keywords, and more that help them continuously implement a strategy to improve results.
Who owns the Digital Analytics discipline and resources?
Identifying the Digital Analytics discipline owner is an important question because depending on the answer, you could end up with a wide spectrum of needs and capabilities.
There may be a centralized Digital Analytics team in some organizations that owns the discipline for all marketing efforts, including website, mobile app, social media, paid search, email, and more.
On the other hand, some companies may find fragmented strategies across different departments with limited resources.
The Digital Analytics team should own the discipline, covering all digital touchpoints across all marketing efforts. While Marketing may contribute expertise on customer insights and SEO best practices, they don’t necessarily need ownership over operational execution and system management.
Every organization has different reasons why such a digital analytics role would be funded and reside under which department. The common case where digital analytics would be within an organization would be:
- Marketing department under CMO budget
- Under BI team under IT or CTO office
- Decentralized analytics roles across departments
What should a business expect from Digital Analytics capabilities or services?
Digital Analytics is a key part of the digital marketing strategy for any company. To give your business an edge over competitors, you’ll want to make sure that you have the right data and insights available at all times.
Analytics help marketers understand how customers behave online and knowing what they find valuable about your product or service offerings, which social media channels drive the most traffic to your website, and much more.
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