What is analytics?
Analytics is the process of inspecting, cleansing, transforming, and modeling data with the intent to discover useful information, suggesting conclusions, and actions.
It’s about knowing what happened in the past. So you can make better decisions now and in the future.
Why do you need analytics?
Analytics is a key to success. You can’t make data-driven decisions without it.
It helps identify what you do well and where you need improvement. So It let you know if your strategies are working or not, allowing you to make changes when needed to reach your bigger goals.
How does analytics help?
Analytics helps you understand current performance, explain past performance and predict future behavior.Analytics helps you understand current performance, explain past performance and predict future behavior. #analytics Click To Tweet
- Current Performance: It gives you the tools to measure what is happening now in your efforts to grow your business.
- Past Performance: It tells you how well a particular tactic, channel or campaign has performed in the past, so that if it comes up in conversation, you can show its value.
- Future Behavior It helps predict the impact on your bottom line if you change something in your strategy, like cutting back on spending for a specific campaign or increasing ad spend to generate more website traffic. Knowing this information will help you make data-informed decisions about what changes need to be made moving forward.
How it works and what do business owners need to know about it?
Analytics can take many forms. For example, when you search online for a product, you are presented with ads for that product. Analytics is what provides the information to show which ad gets the most clicks and sales conversions.
Analytics helps business owners determine how a decision will impact their revenue and bottom line, so they can make data-driven decisions about what changes need to be made to reach their goals.
Here are some common tools and metrics used:
- Google Analytics: Provides insights into your website traffic and behavior, such as landing pages and top content.
- Bing and Google Search Console: Helps you track your keyword rankings, clicks, and impressions.
- Google Sheets: This lets you store, organize and analyze all your data in one place.
- Facebook Pixel: Helps you track conversions on your website from activity that occurs on Facebook, allowing you to optimize campaigns and target ad content more effectively.
- Content analytics: Reveals how much people engage with certain content pieces across different channels.
- Google Ads: Helps you analyze ad performance and how much it costs to acquire a lead or new customer.
How can business owners use analytics to drive their marketing strategy?
The world of business is all about providing customers with what they need before they know it themselves. The process of providing customers with their needs is achieved through marketing campaigns. Marketing campaigns are the only way to get ahead of your competitors and increase sales. However, without analytics, you won’t know if your marketing campaign is working or not.The world of business is all about providing customers with what they need before they know it themselves. #business Click To Tweet
Different Types Of Data
With all this talk about analytics, how is it actually done?
Analytics divides into three categories: internal data (what customers do), external data (what your competitors are doing), and social media. (How the public perceives and talks about brands and products.) Once you have collected these three sources of information. You can piece them together to form a clear picture of what your customers are looking for.
Internal data sources include personal information about an individual customer, such as their name, gender, and age. You probably already use some internal data in your marketing campaigns. Such if you know that most of your clients are female between 20 and 30. Internal data is also helpful in terms of customer needs and preferences. Such as if they prefer the product in red or green, or what features they look for in your products.
Using internal data is only one part of measuring customer behavior. The other half is gathering external information on your competition. This includes statistics about their sales targets, their growth records, industry trends, and even the weather. Analyzing this information gives you a good idea of what your competitors are doing well. You can then use this information to improve on what they are doing well or set out to do things even better than them.
Alternatively, you could also skip the competitive analysis and focus entirely on social media instead. By monitoring what they say about you on social media, you can learn what customers think of your brand and how they feel about your products. For example, if someone complains about a faulty product on Twitter, it can hurt your brand and needs to be addressed immediately.
Marketing Campaign Design
Thanks to analytics, marketing campaigns are more data-driven than ever before. The design of your marketing campaign is determined by what you have found about your customers and the information you have on your competitors.
For example, if you know that most of your clients are females between 20 and 30 years old, then you should design it into your marketing campaign. Your advertisements can mention gender-specific colors, age-appropriate clothing, and even the number of children they want to have one day. You can also increase your sales by selling items associated with certain characteristics of this customer segment (such as if they care about social causes) or offering special discounts for them (such as halving the price during their holiday season).
The most important thing to remember about your marketing campaign is to monitor it continuously and adjust where needed. In spite of all the data you have collected, there may be a few things you haven’t considered. So, make sure you give yourself enough time to monitor the results and adjust accordingly before moving on to another marketing campaign.
Analytics helps you understand your performance, explain your past performance, and predict future behavior. It gives you the tools to measure what is happening now in your efforts to grow your business. Knowing this information will help you make data-informed decisions about what is needed to reach your goals. A/B testing, for instance, can improve the best strategies. You can prove which campaign provides the best results.