The Essential Role of Data Analytics
in Digital Marketing

How Does Data Analytics Work in Digital Marketing?

Data analytics is simply the process of gathering and interpreting large datasets. The point is to discover unique insights that can help you make better marketing decisions. Here, we’re referring to anything from clicks and likes to the number of returning clients and purchase history.

Based on all the data you gather, you can build a story about your customer’s behavior. It can feel like the digital corporate version of being a stalker, but it’s totally legal. More importantly, it helps you provide a more personalized service to your buyers. As a result, you get a clear sense of what to do to promote your business more effectively.

For example, if you’re running ads, you have to understand their performance and ROI. Then, you have to compare that with the performance of other marketing tactics, whether it’s blogger collabs or SEO. Even when you’re getting dofollow links for PR or to improve your DA/DR, what high-link metrics should you keep an eye on? And how to interpret that data afterward? That’s what we’ll check further below.

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Types and Sources of Data in Marketing

The best thing about digital marketing data is that every channel can be a goldmine of information. Here are the common sources of data and where they come from:

• Customer data: Want to know what customer demographics are window shopping and which ones are converting? Then this is your plug. It shows you the browsing behavior of customers, what they have purchased in the past, and how actively they engage with your content.
• Social media campaign data: Want to know how well you are doing in the brand popularity contest? This gives you insight into the conversion rates, CTRs, and other metrics that show your campaign performance.
• Website analytics data: Have you ever wished you could have a website version of a CCTV camera that showed you what was going on? Well, that’s what website analytics tools are for. The data you get shows you how users interact with your site, which posts are VIP zones and converting more than others, etc.
• Product data. This data captures which product features are people’s favorite and which ones get the ghost treatment. With these insights, you can create better products that people will be able to enjoy using.

You can also track email campaigns, mobile apps, content, SEO, ad performance data, and pretty much any other digital marketing process you can think of.

Importance of Data Analytics in Digital Marketing

Have you ever played a darts game… blindfolded? That’s exactly what it feels like to run a business online when you don’t include data analytics as part of your workflow. But, when you use data analytics in marketing, you become unstoppable. How? Well, the data helps you to:

Optimize Market Campaigns and Strategies

Everyone knows it can cost a lot of money to run campaigns, and it’s easy to blow through your budget and still not get the right results. So, it makes perfect sense to use analytics data to track what’s working and what’s not. You can track your performance in real time and know exactly when to change gears so you can maximize your outcome more effectively.

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Understand What Customers Really Want and Deliver

71% of customers expect brands to provide personalized experiences. They get frustrated (rightfully so) when this is not the case. But meeting that kind of expectation can feel like you need to be a mind reader. Well, data analytics is exactly how you discover customer preferences so you can deliver the exact service they want. This works across the board.

Apart from understanding customers’ pain points, you also learn what they need and how to create content that resonates with them. Does it work? Well, 74% of marketers say so.

Source: Upperscore

Make Data-Driven Predictive Analysis

Source: @NovaquestR

Data analytics has a really important role to play in helping business owners make the right call when it comes to how they run their company. Imagine that you have loads of historical data every time you want to make an important decision.

You can see:

• What strategies were used in the past;
• How the customers responded;
• Which channels recorded the most conversions, etc.

The more data you have, the easier it is to spot patterns and trends in the market with more accuracy. Not only would this be helpful, but it’s also going to save you time. Now, you can tell when demands for certain products will spike and how each demographic will respond to a certain content type.

Spoiler alert: they will respond to content that matches search intent. This is why NotifyVisitors recommends using data when writing for people. With relevant stats, you don’t have to waste resources making the same mistakes your predecessors made in the past.

So, it’s really no surprise that 90% of businesses that use predictive analytics have recorded higher customer satisfaction rates. Naturally, that means increased retention rates, more sales, and lower operational costs — even better when you add machine learning into the mix.

Gain More Competitive Advantage

When you master digital marketing and data analytics, you will find it easier to quickly adapt to new market trends. You can also make prompt decisions with accuracy and recognize which new opportunities are worth jumping on. All of these give you a competitive edge and make your brand pretty formidable.

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The Three Models of Marketing Analytics

Think of the three models of marketing analytics, like the e-commerce version of The Three Musketeers. When all three are a part of your process, you can turn raw data into tangible actions that increase your profits.

Source: Data Demystified

Model 1: Descriptive Analytics

Ever wanted to be a time traveler? This is as close as it gets… for now. Descriptive analytics gives you a full view of your past performance. This way, you can compile all the necessary data. You can also get a comprehensive performance review and draw detailed insight that can guide you in future marketing efforts. Pretty cool, right?

Model 2: Predictive Analytics

Predictive analytics is like being able to tell the future. It helps you tell what future customer behavior and market trends will be like. As a result, you can quickly spot good opportunities and know what risks to avoid. Still don’t get it? Let’s put it this way — you will know which customers are likely to convert. You can even estimate or predict future sales. Don’t be surprised. If you really think about it, it makes a lot of sense. After all, what good does time travel do if you can’t change the future?

Model 3: Prescriptive Analytics

This tells you exactly what steps to take to get the future you dreamed of. So you know the best steps to optimize your campaign, the exact time to post for maximum engagement, and what channel to use. You can also do risk assessments when needed.

TL;DR: Descriptive analysis tells you what happened and how it happened. Predictive analytics reveals what might happen. Prescriptive analysis recommends what to do next together. The good news is that, unlike superpowers in movies, you don’t have to choose one. In fact, you are better off with all three.

Recommended reading: What Is Data Capture?

How to Use Marketing Analytics

What is the point of learning all about data analytics marketing if you don’t know how to put all this knowledge into good use? Exactly! So, here are our tips for making data analytics a normal part of your business operations:

• Set clear goals about what you want to achieve. The idea is to know exactly what KPIs can help you accurately judge your marketing goals. If you don’t know what to look out for, you’ll never optimize your processes.
• Invest in analytics tools. Does it sound expensive? Don’t panic! It doesn’t have to be. Of course, if you have a budget, great! Yet, if you don’t, even using Google Search Console and the free versions of analytics software can make a big difference.
• Collect your marketing data from as many channels as possible. This includes social media, websites, purchase history, etc. The more data you have, the more powerful you get. But it only makes sense if you do something with it afterward.
• Analyze your data. Interpret all the information accurately by looking at the patterns and trends that form and how they match with key events. It is also helpful to get different teams involved to see their perspective.
• Use the data to create a personal touch. You already know how people like this. So why not create targeted online marketing campaigns, personalized messages, and experiences? Warning: Just don’t come across as a creepy stalker, and, of course, remember about the data collection legislation.

Conclusion

Digital marketing and data analytics go hand in hand, kind of like one of those couples that seems like they are meant to be. After reading this guide, you probably don’t have many doubts about that. But be careful. Your result still depends on how consistent your efforts are. This is especially true when interpreting the relevant data. Always keep an eye on progress to see which predictions are working. Also, don’t be afraid to change things up from time to time. Data is not meant to kill creativity but to help you use it more accurately.