It’s hard to quantify the effects of a company’s marketing strategy, and even harder when it’s through digital marketing. Questions on what should be measured and how to measure it are being thrown around in the industry. To add to that, more companies are demanding measurable data from marketers.

So how do we actually get quantifiable metrics? Simple, the answer is through digital analytics. It’s the best way for marketers to show data and prove the effectiveness of their marketing strategies.

What is Digital Analytics?

Digital analytics is defined by Sponder and Khan as a study of various forms of business data to improve the online experience of a business and its customers. It’s the practice of gathering measurable data that can be managed and analyzed to make sure the strategies are working and to optimize a return on investment.

A lot of marketers make the mistake of not monitoring the analytics of a company and miss the opportunity to better their marketing strategies.

The Importance of Digital Analytics

It’s important for a digital marketing firm to monitor and determine which parts of the marketing campaign are working.

Monitoring a company’s analytics can help boost the effectiveness of a marketing campaign. The marketing firm should be able to answer questions about the company’s marketing efforts and how to improve them going forward. It will also minimize wasted time and money on strategies that aren’t working for a certain brand.

A marketer who knows the importance of analytics can help a company allocate its budget wisely. They will also be able to double down on what works to get even better results. As the online world changes from month to month and even week to week, the marketer who focuses on analytics will be able to change with the industry and keep their campaigns one step ahead of the curve. That’s the kind of marketer you need to help your business grow in the digital world.

Use Analytics to Get Results

Now that we’ve established the importance of digital analytics, you’re probably wondering how to use it to get results. Let’s break it down so you can get a return on investment in your marketing strategy.

1. Create a customer list, and find out where those customers came from.

The first thing you should do is to look at all the people who bought or acquired services from your company in the last 12 months, then figure out where they came from. They could have discovered your company through organic advertising/marketing or paid advertising/marketing.

Organic advertising/marketing means getting clients naturally. It can be through word of mouth, such as referrals, or your social media posts. Paid advertising/marketing means getting clients through the influence of ads you pay for. You can see paid advertising/marketing in different social media platforms that are tagged as ‘sponsored.’

Once you’re able to pinpoint where most of your clients come from, you will be able to decide where you want to devote your marketing efforts.

2. Set Basic Metrics You Can Track

If you’re spending money or hiring people to help you with your digital marketing, you need to know your ROI. How many leads are you getting, and how many are turning into customers? If you’re not getting any customers, then you know something is broken and needs to be fixed.

Ask yourself these two questions:

1. How many leads/customers am I getting from this marketing channel?
2. How much am I spending?

Let’s use social media as an example. Say you’re spending $2000/month on someone to create content and post on your social media channels. Every month, you get 10 leads from social media — 10 people who are interested in your product/services and who you’re qualified to help. $2000 for 10 leads means that each lead is costing you $200.

Now you have to determine if that makes sense for you. If you have a professional service and each client pays you several thousand dollars, that makes sense. It’s not outrageous to pay $200 to get one lead that could potentially pay you ten or even five thousand dollars.

You can see how this situation varies greatly by industry, marketing channel, and your conversion rate. However, if you can do the simple math on marketing spend and leads/customers, you’ll be able to determine what’s working and what’s not. You can also set goals that give you an indication of when you need to tweak your strategy.

It might take some time and effort to monitor your analytics but remember that it’s a key component in marketing. Do you have questions about analytics? Leave a comment down below and we’ll answer all of them for you!

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