It’s incredibly easy to track visits, usage and all transactional data these days thanks to platforms such as Google, Adobe and other tools. However, the abundance of data we can all track and collate is great! But what then? How do we digest the data? What does it all mean and how do we put it good use?
“Don’t just track data. Use it.”
Data can be used for all sorts of reasons such as measuring results and discovering trends amongst products, posts and website visitor behaviours. However, the value of data is based on how its usage can positively impact a business. Here are some relevant scenarios…
Understand your visitors and customers
Through analysing and filtering your site usage and transactional data, find out who your visitors and paying customer are – this will allow you to better target future potential audiences and re-market to existing customers.
Visitor and customer data allows you to ‘paint a picture’ of your customer segments so that you are better equipped to make more informed decisions on your marketing, products and resources.
Find out your best selling products
Without data and the use of measuring sales statistics and other such metrics, we simply would not have any realistic idea or accurate insight as to what’s most popular with customers, what’s selling and what’s not!
Businesses can use data to identify key commercial indicators such as best selling products/services versus the most desirable product/services sales, perhaps those delivering higher profit margins.
Where is my revenue coming from?
It’s always quite useful to understand where your profit is being generated. Is the majority being generated via that Google Ads campaign or is it coming from Facebook? Are you able to measure your SEO transactional data? If so, how effective are your SEO efforts?
Whether you track your digital marketing and SEO data via a single reporting platform or independently via each channel, it’s important to identify the revenue generating channels for a number of different trends such as seasonal impact i.e. during the winter season does Google Ads generate a healthier return than the more passive routes to market such as Instagram and Facebook? This might be the case as Google provides a search capability where people typically know what they’re looking for when they enter a search query; there is intent and purpose when people query the Google search engine.
What is my biggest cost centre?
Probably one of the most significant reasons for actioning measurable data is to identify your loss leaders or areas of greatest cost.
In the digital marketing world you would typically measure such costs as a ratio i.e. cost benefit. For example, a company runs a single Google Ads campaign and a single Facebook Ads campaign, both promoting the same product or service. The metrics or data we will want to look at here is cost per lead (CPL) and cost per acquisition (CPA).
Your CPL will always be higher than your CPA. But what you will want to measure and compare here, are the costs from both platforms – which marketing channel costs more to run?
What now? Now you identify the return on investment (ROI) each platform has produced. The sole purpose of measuring your ROI is to discover your financial gain for a given revenue stream. Depending on the results you unearth, your next steps will be crucial in affecting your costs.