Online marketing analytics is the collection, reporting, and analysis of data from multiple sources to improve overall online performance and return on investment.
Analytics let you track results in virtually real-time, which means ongoing adjustments can be made to online activities to improve business results.
Testing tactics and understanding cause and effect increase the probability of achieving positive results. Testing your online activities is both practical and within reach, thanks to the multitude of readily available tools and access to real-time data.
The challenge is to overcome the tremendous amount of data and reporting available – organizations must avoid suffering from “analysis paralysis”. You must focus on the data and reporting that really matters.
Developing an Analytics Strategy
As with any marketing strategy, understanding what you are trying to accomplish before “doing” is the smart approach.
This is especially true of online analytics. Collecting data and attempting to perform effective analysis, without first understanding online marketing objectives and desired outcomes, will leave an organization spinning its wheels.
Before spending time gathering data and reviewing reports, undertake these steps to make sure you have direction and focus:
1. Identify/Confirm Business Objectives
Understanding your organization’s growth targets and how this growth will be achieved is a prerequisite to understanding the role online marketing will play in supporting the targets.
This is “driving the stake into the ground” and should direct all online marketing efforts and analysis.
An example: doubling revenue for a product line over the next three years.
2. Establish Key Performance Indicators (KPI)/Metrics
Key performance indicators/metrics must be directly linked to business objectives. How will success be measured against the stated business objectives? What are the leading indicators that will determine whether business objectives will be achieved?
Using the above example: a key performance indicator/metric is the number of inbound leads generated through the website for this particular product line.
3. Set Specific Targets
Once objectives and associated key performance indicators/metrics are established, specific targets must be established for each KPI/metric.
Initial targets can be based on historical online performance (if available), and forward projections driven by the business objectives.
Using the above example: based on a historical close rate of 30%, an average of 25 inbound leads per month must be generated to double product line revenue over the next three years.
The Bottom Line
Analytics is a never ending process. The market and competition don’t stand still; online marketing tactics must be measured and adjusted to adapt to changing realities. Data collection, reporting, and analysis must be part of day-to-day activities if your organization wants to effectively leverage online marketing to drive revenue growth.
>> Core Online Marketing can help your business grow with strategic online marketing tactics. Contact us, or sign up for our free online marketing seminar in Oakville, ON to learn more.
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