Why use Marketing Analytics?
Many marketers have heard the well-known quote from John Wannamaker (circa 1890) who said “I know that half of my advertising dollars are wasted… I just don’t know which half.” John Wannamaker may be considered by many to be a pioneer of marketing but as we all know the world of business in general and marketing in particular have come a long way since then. The internet has become a powerful and essential marketing tool in today’s competitive business environment. The internet as we know it is a relatively new phenomenon and is evolving every day. It allows businesses to tailor their data to a specific audience; including location, age, gender and even what device they use to access the data.
When trying to understand marketing analytics two questions must be answered; first what are marketing analytics and secondly why use marketing analytics?
Marketing analytics are the numerical data and statistics that are generated by a customer’s activity both offline and online. This can come from a number of sources such as activity on the company’s webpage, responses from newsletter emails or views on a company video
The ability to control who sees content from the company works amazingly well at reaching the target demographic but what then? Here is where the magic happens! Every online tool your business uses to generate content to potential users is working away furiously on your behalf to gather and analyse the results of your efforts. However it is up to you to go and get that data.
There are so many results generated from online marketing that it is important to prioritize your data. Top key performance indicators (KPI’S) may differ slightly from company to company but I will attempt to give a concise list of what many consider to be an essential measure of online marketing effectiveness.
Top 5 Marketing Analytics KPIs
1. CTR (Click through Rate)
The name is pretty self-explanatory in that it is the measure of how many people click on a link you have provided, whether it be as a Google AdWord, an email link or on your company website. This KPI gives a great starting off point in your analysis as it shows how much interest your content has generated and an insight into potential leads.
2. Conversion Rate
This metric is the measurement of out of all the people who clicked on your link how many were converted into sales or leads? This can be done on Google Analytics by setting a goal page or on WordPress by calculating leads generated on a website. There are many ways to gather conversion data. Find the one that suits your business and put it to work!
3. Bounce Rate
A bounce rate shows the percentage of people that have opted out of your website after viewing the first page. The result of a potential customer leaving on the first page means a potential sale lost. This figure needs to be monitored and kept at a low rate at all times. Some analysts believe anything under 50% bounce rate is good. Whatever your rate is on your first viewing always strive to reduce that number. The lower the bounce rate the greater the customer engagement with your website.
4. Keyword Analysis
Keywords used for SEO (search engine optimisation) and Google AdWords should be tracked and closely monitored to see which words are performing well or falling off the grid. After finding this result you then need to find out why. Are the words interesting to your customer? Have you content on your website to match these keywords? Is the marketplace filled with these words already and should you consider diversifying be competitive? The answers to all of these questions can be found by analysing your keywords over time.
5. New Versus Returning Visitors
Keep an eye out for the breakdown of visitors to your site, whether they are new or returning. A high percentage of returning visitors shows high brand loyalty. You may also be looking for a high percentage of new visitors as a measure of how effective a new marketing campaign has been at attracting new customers.
So why use marketing analytics? Marketing analytics allow us to go further than ever before to quantify a ROI on any marketing efforts. With today’s technology it would be impossible for half a budget to disappear! Everything is quantifiable once you understand and put the effort into generating and gathering your data. These results can be used to refine your preconceived target market, it may be more niche or far broader than you ever realised.
Constant monitoring is needed to get the full benefit of marketing analytics, constantly comparing results and setting future targets are the key to success in this area. Why not contact us in IMS Galway if you are interested in hearing more about marketing analytics for your business?
Contact our Digital Marketing Manager today at [email protected]