Analyzing the Right Data for Digital Marketing

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Online businesses collect a huge amount of data, and without detailed analysis, those would be just a set of useless random numbers. Your digital marketing strategy will never be successful enough if you do not perform data analysis in parallel.

Analyzing the right data allows you to find out if your digital marketing efforts are paying off. If your digital marketing strategy is based on theory and previous experience, it could easily happen that it is outdated and therefore unsuccessful.

By analyzing the right data, companies can experience a number of benefits. Some of them are improved customer service, increased efficiency, increased sales, and increasingly increased competitiveness.

Data analysis can help you predict future business moves, activities, and trends. It is equally important that the data is analyzed properly, and it is even more important to know which data to pay attention to. If you’re not sure you can do it on your own, luckily, there are professionals whose services you can rely on.

In today’s article, we will talk about the analysis of digital marketing metrics and their role in the success of your business.

#1 Analyze your sales income

The first item on our list may seem obvious – increased revenue shows that your marketing strategy is successful.

However, it is not easy to know whether the increase in your income is a consequence of properly done digital marketing or seasonal needs for your products or services.

Without revenue analysis, you will have no idea if your marketing efforts are paying off.

To analyze sales revenue, use tools that measure sales data and other KPIs, such as:

  • The number of new customers acquired.
  • Customer lifetime value.
  • Cost per customer/acquisition.
  • Return on investment for ad-spend.
  • Customer attrition rates.
  • Social media/brand awareness rates

You will need to be consistent in analyzing KPI data. Track them on a monthly basis to notice an increase in sales revenue compared to your marketing strategy.

#2 The retention rate of your customers

The customer retention rate shows the number of customers the company has retained over a certain period of time. In short – it shows the number of customers who are loyal to the brand.

The number is expressed in percentages, which can vary from 0 to 100. Of course, 100% is always a good customer retention rate, while already 15% is considered weak. Everything in between can vary depending on the business niche.

A retention rate measurement is absolutely necessary. This metric is usually tracked once a year in a relatively easy way.

You need basic information – spending per customer account or the number of coupons that your customers have used. In relation to feedback, you can plan a further retargeting marketing strategy.

#3 Engagement on social media

Engagement on social media
Photo Credit: Pexels

Social media engagement is any kind of interaction that your followers have with your posts on social networks.

Given that social networks bring a good portion of revenue to any business, the analysis of social media engagement is a necessary indicator of the success of digital marketing.

To calculate the engagement rate of your clients, divide the number of interactions (likes, shares, comments) by the number of followers, and then multiply the result by 100. The number you get is the engagement rate for a given post (%).

The engagement rate is different for all social networks. The engagement of Instagram users is generally higher than the engagement on Facebook and Twitter.

Social engagement tracking tools can make this job much easier for you. One of the most popular is Khoros. If you want a tool that will follow all your social networks, you can choose Hootsuite, which is compatible with over 35 popular social platforms.

#4 Analyze your CPC (cost per click) investment

CPC analysis is one of the simplest metrics to help you see the performance of your ads. The number of people who clicked on the ad compared to the price of the ad will tell you how effective your CPC campaign is. Based on the insights you gain, you will be able to change the strategy, if necessary, and retarget your target group.

CPC is easy to calculate – Multiply your maximum cost-per-conversion by your conversion rate to determine your maximum cost-per-click.

So, if your past paid marketing efforts yielded a conversion rate of 5%, multiply that by the maximum cost-per-conversion of $10. This gives you a figure of 50 cents for your maximum cost-per-click.

A good CPC determines your goal when it comes to ROI. For most businesses, a 20% cost per purchase or a 5:1 revenue-to-cost ratio would be acceptable. From there, use the formulas above to set a target cost-per-click for your ad campaigns.

Many platforms can automatically measure CPC for you, but even if this is not the case, you can get the required number yourself in the simple way we described.

#5 Monitor the amount of traffic your website gets

The amount of traffic on your website is important for a number of reasons. In short – the more people see your site, the more potential customers you will have.

A number of visitors = number of opportunities.

The traffic on your site is a clear indication of whether your marketing investment is paying off. It’s quite simple – if the number of traffic increases, it is a sure indicator that the marketing strategy is good.

You can track the traffic on your site through Google Analytics, which will give you a clear picture of what you need. In addition to Google Analytics, you can use other tools, such as Adobe Analytics, Matomo, Clicky, or Phantom.

Site traffic analysis will do more for your business, than showing mere numbers – it will collect data from your visitors. That will allow you to raise awareness and do better targeting of your future customers.

Quantity is not more important than quality. Information about your customers will help you create marketing strategies that will target your ideal clients, as well as to give them all the relevant information. For example, if you are running a hotel, you would want your website to have all the relevant info such as bookings, prices and location. This link will explain more about it.

#6 Analyze and update your keywords

Analyze and update your keywords
Photo Credit: Pexels

A keyword analysis is important because it reveals how organic traffic comes to your site. This data shows which phrases your audience uses when entering a query in search engines, in search of your products and services.

One of the best keyword analysis tools is Google AdWords. With this tool, you will not only be able to discover the best keywords for your business.

You will be able to analyze keywords that use your competition. You’ll also see your chances of ranking for a particular keyword.

Once you know which keywords are ideal for your business niche, use them in all channels of communication. On your website content, posts on social networks, calls to action, etc.

Keywords need to be regularly monitored and updated to keep up with the competition and get the most out of your marketing efforts.

#7 ROI and ROAS

We all know about the importance of ROI (return of investment), which is usually obvious, but ROAS (return of advertising spent) is equally important.

ROAS compares the amount of money invested in advertising compared to the amount of revenue that is a direct result of advertising. Of course, the calculation is clear here. You should earn more than you invest in advertising.

To measure ROAS, take sales revenue data that is directly related to ads. Compare the data obtained with the money you invested in advertising. You can track ROAS via Google Analytics and other tools, or you can easily calculate it yourself.

ROAS will provide you with valuable insights into the performance of your ads, after which you can customize them as needed. You will also find out which ad (if you are advertising on multiple platforms) is the most effective and you can increase your investment in that channel.

For example, if your ad on Google is performing better than the ad on Instagram, that’s the clear sign you should align more budget to the source that brings you revenue.

Don’t forget to research the demographic profiles of your audience and optimize your ads for them specifically.
Of course, hiring one of the top media buying agencies can take this burden completely off your shoulders.

#8 Check your conversion rates

Conversion rate is the number of conversions divided by the total number of visitors. The conversion rate will show you how many visitors to your site made a purchase.

For example, if your site was visited by 1000 people during the month, and 200 made a purchase, your conversion rate is 20%.

An acceptable conversion rate is anything from 2 to 5%, and sometimes even an increase of 0.5% can be a great thing for your business. Conversion rates of 10% or more are considered good.

High conversion rates are an indication that your marketing strategy is successful. To avoid calculating it manually, you can find out at any time via Google Analytics or CMS.


If you wondered what data matters the most, hopefully, we gave you the answers to your questions.

The metrics we have talked about will give you useful insights into which marketing strategies work and which need improvement.

Use the numerous tools that provide correct and detailed information about your digital marketing efforts. Increase your investment in revenue-generating marketing channels.

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