The Role of Data Analytics in Digital Marketing

Understanding Digital Marketing Analytics:

Role of data analytics in digital marketing

The advancement of the Internet and increased usage of smartphones have made CMO’s make data-driven decisions in their marketing strategies. Before diving deeper into this topic, it is crucial to know that digital marketing analytics doesn’t limit to website analytics alone. Further, Digital marketing analytics involves the analysis of data across different platforms including your website as well. Different Marketing channels work differently for different companies. 

Thus, it is necessary to analyze the marketing efforts in various channels as well. According to Gartner, in this pandemic, CMO’s have started cutting their advertisement costs and have started focussing more on SEO. So, organic reach seems to work for many companies. Here’s what you should eventually look for if you are driving traffic via SEO. Differentiate your vanity and actionable metrics. How do you measure these metrics? Here’s where data analytics comes into play. 

Here are a few other questions for which data analytics can help you arrive at answers.

If in case you are running paid ad campaigns, how do you know whom to target? How to target people who have landed on your website but haven’t made a purchase yet? How to increase your customer retention? 

Let’s understand how the role of data analytics in digital marketing becomes crucial for businesses online.

Data-Driven Decisions:

Role of data analytics in digital marketing

Before marketing a product on a particular social media or any internet platform, it is crucial to look for data. Meaning, you will have to analyze whether your target audience is ideally present in the platform which you have chosen for marketing. It is available as demographic data, behavioral data, and much more on Facebook, which already has a tailored set to make our marketing easier. Apart from the data given by social media, you will have to rely on external tools and resources to get into proper decisions. The more accurate and precise you are in data research, the more successful your decisions will become.

Analyzing Audience interactions:

Role of data analytics in digital marketing

Taking a website as an example, a recommended best practice is to analyze which part of the website your audience spends time on. There are a set of tools like Hot jar, Heatmaps to understand your audience landing on your website. When it comes to audience interactions with social media ads or search ads, it is better to avoid the vanity metrics as it yields a very little business value. The likes and views aren’t going to give you revenue. Similarly, the landing page views do the same. Measure the actionable metrics like the conversions you got from an ad or a lead who has downloaded your lead magnet. These metrics can help you understand which works better. On a larger scale, data analytics can help to segregate and make this easier to understand as a whole.

Customer Retention:

Role of data analytics in digital marketing

The main challenge faced by many companies is customer retention. To improve customer retention, companies can move towards personalized marketing for each customer. The advancement of AI and machine learning can help us understand the requirements of our customers. Thus analyzing your customer behavior and marketing your products accordingly in digital Platforms(that works best) can help you increase customer retention as a whole. Thus personalized marketing backed up by AI & proper analysis can help increase customer retention.

Optimizing the Strategy:

Role of data analytics in digital marketing

Once you have collected enough data on the audience insights, their responses to different formats of ads, the way the customer responds to your upsells, It is time to analyze the data to optimize your digital marketing strategy. Implement cost cuts and efforts spent after understanding various analyses of data. Optimizing costs and time is the biggest challenge in any marketing roadmap. But, with suitable tools and proper data analysis, digital marketing strategies can be implemented without having to break your head.

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