Evaluating Performance of Digital Channels
In this lesson, you’re expected to:
– understand the difference between web analytics and digital marketing analytics
– learn how to measure the effectiveness of your digital marketing efforts
– discover the analytics cycle
Measuring the effectiveness of digital marketing is one of the greatest challenges facing organizations.
According to HubSpot’s 2016 State of Inbound report, 46% of marketers cited “proving the ROI of our marketing activities” as one of the biggest challenges they face within their company.
What is Digital Analytics?
“Digital analytics is the analysis of qualitative and quantitative data from your business and the competition to drive a continual improvement of the online experience that your customers and potential customers have which translates to your desired outcomes (both online and offline).”
– Avinash Kaushik, author of Web Analytics 2.0
Why Digital Marketing Analytics Matter More Than Web Analytics
While web analytics can provide you with a wealth of insight and data into the performance of your website, marketers need much richer data to understand the impact of their marketing campaigns on conversion rates and a person’s journey through the marketing funnel.
Looking at top-level web analytics/metrics doesn’t provide you with a complete picture of the situation.
Thus, digital marketing analytics offer a much more comprehensive view of what’s working when it comes to your marketing strategy, and what isn’t.
Web analytics measure things a technical SEO specialist cares about (like page load speed, page views per visit, and time on site).
Digital marketing analytics, on the other hand, measure business metrics like traffic, leads, and sales, and which online events influence whether leads become customers. Digital marketing analytics includes data not only from your website, but also from other sources like email, social media, and online PR.
Why use Marketing Analytics?
With digital marketing analytics, marketers can understand the effectiveness of their marketing, not just the effectiveness of their website.
Using marketing analytics allows marketers to identify how each of their marketing initiatives (e.g., social media vs. blogging vs. email marketing, etc.) stack up against one another, determine the true ROI of their activities, and understand how well they’re achieving their business goals.
As a result of the information they can gather from digital marketing analytics, marketers can also diagnose deficiencies in specific channels in their marketing mix, and make adjustments to tactics to improve their overall marketing activity.
Let’s review some metrics to monitor and suggestions for refining your internet marketing strategy.
When you review your marketing activities, figure out what you want to improve. Do you want more people coming to your blog? Do you want to convert more of the visitors on your home page into leads? Get into the mindset of constantly looking for new opportunities.
Set a Metric for Success
In almost all cases, your metric should be quantifiable and involve a set time frame. For example, “increase website leads by X% over the next X days.”
Refine Your Strategy
Analyze how your programs performed. Make changes with the intention of achieving your marketing goals by doing less of what doesn’t work and more of what works (and by modifying what doesn’t work so that it works better).
Determine if you’ve met your success metric. If so, stick with your change. If you haven’t met it, see what you could have done differently. In either case, continue to monitor the metric to make sure the improvement has a long-term effect.
You’ll also be able to implement closed-loop reporting, making it easier to prove how your marketing efforts are positively impacting your sales team, who are being fed much higher quality leads.
The important thing to realize here is – if you’re relying solely on top-level web analytics, you’re missing out on a lot of powerful data that can help inform your marketing strategy.
The analytics cycle consists of four steps: measure, analyse, report and test.
You’ll want to put the data into context – using industry benchmarks and competitor activities.
Find the best solutions to the problems identified during the analysis. Testing eliminates any personal opinions from the decision making process, helping you to discover opportunities for improvement and create actionable recommendations.