Leverage data analytics to optimize your marketing budget
Digital marketing is defined by channels and numbers. Finding your audience and reaching them is essential to the success of your marketing campaigns. However, to understand and improve your campaign performance, you need to look at hard numbers. This is where data analysis comes in.
What is Data Analysis?
Data analytics refers to a cumulative set of data numbers that allows you to measure and analyze the effectiveness of your marketing activities.
On 26% of marketing budgets are wasted on ineffective strategies and channels, but the insights uncovered through data analytics will help you reduce wasted marketing spend and meet your revenue goals.
Analytics can also provide in-depth insights into customer preferences and trends over time.
Why use data analysis?
Data analytics can help you track important metrics and know how to optimize your campaigns for the best ROI. Some of the metrics you can track include:
- Traffic numbers – Analytics can track the amount of traffic coming to your website. You can find out the source of traffic, generated page views, and actions taken on your website.
- Lead conversion rate – Through analytics, you can determine the lead conversion rate for your offers.
- Consumer Trends – Analytics can help you find out what audiences in your industry are looking for in real time. This information can reveal trends that you can capitalize on.
- Channel performance. Through analytics, you can determine the performance of each marketing channel you use. For example, you can see how many leads are generated from a particular channel.
Improve your marketing spend with data analytics
Here are 6 ways to use data analytics to use your marketing dollars wisely:
- Identify key customer segments
Understanding the behavior of your customers is essential to know the right marketing strategies to put in place. Data analytics provides a 360-degree view of your customers, including their geographic location, languages spoken, average order value, and more. This information can inform your marketing strategy for the best return on investment.
For example, if you find that customers in a certain age group convert poorly, you can evaluate your campaigns to better meet their needs. For customers with a low average order value, you can get them to spend more by offering complementary products.
- Predict and optimize conversions
Your marketing strategies should aim to drive qualified leads to your sales channels. The conversion rate is directly related to the quality of the leads you generate.
Data analysis can help you understand the actions taken by prospects that indicate they are likely to convert. Based on this information, you can create landing pages, sales funnels, and cross-sell campaigns designed to positively impact your bottom line.
- Improve lead scoring
When implementing a marketing strategy, your sales team needs to be ready to contact leads at the right time and convert them. With data analytics, you can identify the customer journey and connect the dots to find out which prospects are likely to convert. This information can help you allocate budget resources efficiently, reduce lost productivity, and minimize response times.
- Discover product information
Data analysis can help you know which products perform well over a period of time. With this information, you will know which segment of your audience to focus on, which marketing campaigns to implement, and which content strategy will improve product performance.
Discovering product information can also help you plan your inventory to avoid shortages. For example, analyzing historical data can help you forecast and position your future product volume to mitigate shortages.
- Real-time personalization
Personalization is key to closing sales. According to a report, 90% of retailers use personalization in their marketing efforts. The report further states that companies generate $20 for every $1 invested in personalization.
Data analytics can help you create a customer persona, which you can leverage through various strategies to generate more sales.
- Appropriate budget allocation
Data analysis can help you know where to allocate your budget to get the best return on investment. By analyzing different metrics, you can tell things like:
- The landing pages that convert the best
- Impact of seasonality and customer trends
- Channels generating the most qualified leads
You can leverage the insights to know what budget to allocate to different activities and campaigns.
Use these data analytics leveraging strategies to get the most out of your marketing dollars.
Data analysis provides essential insights into your business performance, allowing you to identify trends that help you optimize your marketing campaigns and increase return on investment.
