What is Digital Analytics?
Digital Analytics is the breakdown of qualitative and quantitative data from any business and the competition. It’s the digital footprints of your customers by exploring where they came from and where they went.
Digital Analytics drives a continuous expansion of the online experiences of your existing and potential customers that convert your desired outcomes.
Businesses should take digital analytics seriously because the Google algorithm updates keep changing to provide more relevant results.
Digital Analytics is an important part of any business’s digital marketing strategy for tracking and measuring traffic sources on all digital channels.
Digital marketing is imperfect in the lack of digital analytics. Digital analytics deals with huge amounts of data from different sources.
Digital Analytics is essential for measuring the success of a promotional campaign as well as to refine your messaging, design approach, and broadcasting channels.
The Paid, Owned, and Earned Model (POEM) is a part of digital analytics and used for successful social campaigns that introduce the different types of media channels.
The POEM model is used together by marketers to improve customer experience and increase marketing results.
# Paid Media – This channel includes anything that requires an ad budget, like Google AdWords, Facebook Ads, Promoted Tweets, and Banner ads, etc.
# Owned Media – It could be your Website, App, Twitter, Facebook Page, Instagram account, and even your Brand’s persona.
It helps to move from being a topic of conversation to being a part of the conversation by driving awareness, customers’ reply and product promotion.
# Earned Media – It’s the earned awareness of your brand. Your customers are the channel and your brand has little control over this channel.
You can influence the earned media by utilizing public relations and campaigns by positive stories and word-of-mouth messages.
Why Does Business Need Digital Analytics –
Digital Analytics can be defined as an analysis of qualitative and quantitative information acquired from business and using it to understand users’ behavior.
Digital analytics main objective is to measure the performance of digital properties and report the information so that actionable insights can figure out.
You need to analyze the business’s diversified requirements at various stages:
# Inception Phase – It’s the first phase where management decides to launch a product or service.
This phase’s aim is to create a seamless and efficient product or service. Your focus should be to spend less and then see how users are reacting to the product or service.
# Growth Phase – In this stage, you’d have data around the user reactions to the product or service. The main focus should be to expand the reach of the product or service by all the profits made in the inception phase.
It’s very important to understand the well-performing marketing channels for any business through extensive testing. You should check on the ROI on each marketing channel.
# Retention Phase – Here, you have enough visitors on your website and the focus should be to get sales from existing customers.
In this stage, you would probably be a market leader and you should keep trying to acquire new customers.
Your focus should be to maintain the positions by exploring new market channels and be innovative to engage your customers.
How to Measure Digital Analytics –
In the digital age, a strong online presence is key to business growth. Digital analytics opens up a wide array of possibilities.
It’ll lead to gainful strategies with increased exposure, data generation, and advanced technology. Digital analytics has made marketing channels more connected and easier to monitor customers.
The digital analytics process can be used to carry out many things and meant to formalize business users to create efficiency around how the data is collected, analyzed, and given to the business.
# Customer Journey – Your customers have taken a long journey from a stranger to a buyer. The understanding of the customer’s journey is the key to conducting the most effective marketing campaign.
A successful digital analytics strategy should focus on the essentials of the complete customer journey like Acquisition, Behavior, and Results.
The oldest idea of a customer journey is a funnel and it consists of the following stages:
- Building awareness
- Acquiring interest
- Engaging with potential customers
- Drive potential customers towards a conversion
- Retain customers
The customer funnel is intuitive and easy to use. The customer can start their purchase journey at any point along with their decision path.
The marketer’s job is to find out how to knock into this dynamic and predict where customers will appear and what message they need to hear.
# Digital Tools – You can look at a digital marketing campaign with powerful digital tools.
You can apply an appropriate form of the customer journey, begin to analyze, and answer all asked questions:
- Where does the campaign have an impact on the customer journey?
- How much impact was made?
- How does it help to improve performance in each stage?
- How much was the performance was improved as the whole process?
# Choose the Right Tools – The clean data simplicity starts with the right tools. You should choose each digital analytics tool according to their strengths.
There are implementation tools such as Google Analytics, Adobe Analytics, and data visualization tools like Tableau, standalone tools for online marketing, and digital marketing cloud solutions, etc.
Your half of the digital analytics challenge is solved if you’ve chosen the right tools:
—- Google Analytics – It’s a famous, free, simple, and well-supported tool. Many analysts have used Google Analytics in parallel with other tracking tools.
—- Google Tag Manager – You can manage all your tags marketing and analytics in one place.
# Data Integration – Multi-channel analytics integrates data from all channels and performs conversion attribution on collected data.
A marketer can integrate data from various channels and sources to evaluate the behavior of leads into conversion by using multi-channel analytics.
The insights can crop in from multiple sources at the same time and data is used best when it’s shared across the discipline.
—- Quantitative data can be measured through various digital analytics tools like Google Analytics, and Adobe Analytics. You can track engagements taking place on the website using page view and event tracking.
—- Qualitative data can be collected from mobile apps, cloud point of sale systems, customer relationship management systems, and video game consoles.
It helps analysts identify the reason behind changes, trends, etc. and it aims to connect with the users directly.
# Right KPIs – Key Performance Indicators (KPIs) are the building blocks of your digital marketing strategy. The best analytical tools can’t guarantee the right data and dashboards if your KPIs are not planned well.
The KPIs are structured:
- To provide insights on the right business questions.
- To support the analytics process to the business teams.
- To build consent on the metrics to be tracked.
Your users would provide the right analytical insight for your business with extra take care.
# A/B Testing – Testing helps to identify ways to improve website performance and to retain customers.
You can use a few testing methods:
- To compare two versions of a webpage or app against each other to decide which one performs better.
- To evaluate multiple variations of visual elements on a webpage.
- To create an engaging experience for visitors that will convert into customers using various forms of testing in conversion rate optimization (CRO).
# Data Visualization – Data visualization tools allow to analyze a large volume of data in a simplified way and make it faster to make more informed decisions.
Data visualization has become critical to effective digital analytics and tools like Tableau, Qlik, and Adobe Data Workbench are used to improve overall customer experience.
The simplicity and efficiency of data visualization are the best part of a perfect tool that drives business results.
Benefits of Digital Analytics –
Digital Analytics is the examination of qualitative and quantitative data acquired to derive insights about customers’ behavior that is helpful in better decision making.
Digital analytics is increasingly becoming a very powerful tool that can help come across customers’ behavior and trends to optimize business decisions.
Digital analytics can provide a powerful groundwork for more effective marketing budget allocation, campaign planning, and execution.
Here are a few specific benefits of digital analytics that offers:
# Actionable Insights – Digital analytics have the capabilities to meet the end-users and provide comprehensive insights.
# Real-time Analytics – Digital analytic platforms can categorize where users come from geographically and, where they come from online to find your website. Brands can track the devices, browsers, and operating systems (OS).
# Need for Business – Every organization virtually uses digital channels to support offline sales or analyze trends and feedbacks.
Businesses’ operation would be in the dark without knowing anything about customer behavior without digital analytics.
Any customer’s past behavior history, demographics, location, and timing can provide insights that can be used to make the personalized digital experience.
Now customers expect personalizes services that are more relevant to them. Today, brands have to make use of the best analytics techniques available to stay competitive.
Trends in Digital Analytics –
Digital analytics is the groundwork for building effective customer experiences. Marketing channels across different fields can be integrated with digital analytics and becomes easier to analyze each channel.
It enables businesses to track how customers are reacting to various marketing initiatives and channels over time.
Web analytics may generate leads but digital analytics can convert them into a potential increase in sales. It converts marketing activities to sales. It’s the collection, measurement, breakdown, and reporting of business data.
It’s done for the purpose of understanding and optimizing web usage. Digital analytics can give the power to know how visitors use web content.
# Cloud Analytics – It’s a significant arm of digital analytics. It’ll help businesses with various analytics capabilities such as planning, forecasting, visualizing, preparing, collaborating, and managing the data.
Software as a Service (SAAS) helps businesses in revolutionizing a smooth experience for the user with common logic.
SAAS will help brands to decrease the total cost of ownership in analytical requirements. It’ll subsequently lead to a rise in ROI up to 5 times.
# BigData – Big data will help businesses to disclose insights that’ll help reduce costs and maximize customer satisfaction.
It’ll be one of the smartest digital analytics marketing tools. One of the biggest concerns of any business is the organization of large data volumes creatively.
# Machine Learning – There’ll be rapid growth in the role of Artificial Intelligence and automation technology in decision making.
Machine Learning will have an important influence on digital analytics in the future and helpful in deriving insights from a large volume of data.
It’ll help brands to gain scalable insights into smart business processes and applications.
Conclusion – Digital Analytics helps to understand and improve the performance of digital marketing activities. It accelerates the development of your e-commerce business. Digital marketing is the key factor in the success of e-commerce and digital analytics is the key to digital marketing operation. The landscape of digital analytic is evolving so rapidly and it has become the need for digital strategies.