Instead of guessing, analytics is very useful which in turns marketing activities into analyzed measurable decisions.
Behavioral analysis of a customer
Analytics shows directly how the customer/user interacting on your site.
Where the visitors are coming from, which ads they are coming form, search ads, display ads, remarketing ads, facebook ads and email ads commonly called as acquisition channels in google analytics.
What kind of pages they are visiting and how many number of times the pages are viewed
Example: 500 page views from contact us page
Where they drop during the entire journey of the purchase behaviour, whether it is in
Product page, add to cart or checkout.
Analytics helps you track conversion rates (CR), Cost per acquisition (CPA), Return on Ad spend (ROAS), Revenue, Click Through Rate(CTR)
Photo by Antoni Shkraba Studio from pexels
Conversion Rates (CR) helps us to measure the percentage of users who completed the desired actions (purchase) out of total number of visitors visited the website
Conversion rate shows how effective your campaign be, helps to identify where the user drops, more than just the traffic analysis.
Cost per Acquistion (CPA) helps to identify how much you spend to get one customer or one conversion or one lead or one signup
Lets say you are spending search ads on $ 2000 for 100 Signups, your cost per acquisition is $20
Cost per acquisition can be measure at cpa at campaign level, cpa at ad set level, cpa at ad level.
Return on Ad spend (ROAS)
Return on Ad spend helps us to measure how much revenue you earn for every dollar you spend.
Lets say you spend $1000 on remarketing ads and revenue you generated from ads is $7000. Your Return on ad spend will be 7.0 or 700%.
Click Through Rate (CTR) measures how often people click after seeing your ad or email or link
Lets say you are getting 10,000 impression for facebook lead generation ads, and the customer clicking on ads is 200, Your click through rate is 2.0%
You can invest your money more on high performing channels and stop wasting it on low performing channels or poorer ones.
Analytics helps you track high performing keywords, low performing keywords, long tail keywords, negative keywords.
Analytics helps us to target the right audience segments, audience based on mobile devices, audience based on operating systems, audience based on city, country, geo locations, audience based on gender and age groups.
You can even run A/B testing on ads and landing pages, personalized a/b testing, personalized landing pages.
This will lead to high conversions, high return on investment and lower ad costs.
You can make data driven analytics decisions where products sell most high performing keywords, which campaign drive revenue, which ad copies drive revenue, which keywords drive revenue, which customer segments are most valuable, which mobile devices are most valuable and which city/country need to target or expand most.
Forecast your sales and plan your investing.
Analytics allows you to predict demand and analytics historical data.
Forecast your future sales using predictive modes based on historical performance.
Avoid overstocking or stockouts, plan the inventory effectively.
Analytics ensures the right products are available at the right time improving customer satisfaction and profitability.
Forecast helps business sets sales targets, budgets on different campaigns and marketing plans.
