Data Analysis is the term that we all have been hearing from the later part of the last decade. It appears to be very fancy and has the wrong notion that it is only used by big organizations.
Data Analysis is nothing but analytical and logical reasoning to gain information from the data.
It is very interesting that data analysis was used long before computers even existed. Ancient traders and merchants did data analysis by keeping a record of their customers and ensuring adequate stock. They knew what would sell where and for how much. And sometimes, they travelled to land far from their homeland to make more profits, as they knew what would sell where.
Let us see 3 ways in which data analysis can support & improve your digital marketing.
Know your Data
In today’s time, data analysis is nothing but checking records of your business. This means finding out more about your customers, knowing what they buy and how much they spend as well as their preferences and purchasing habits.
Using data analysis, you can determine what forms of advertising reaches your customers effectively and what makes an impact that will make them buy your products. Data enables you to understand what methods of advertising your product have the biggest impact on the target audience and at what scale you can adopt such advertising.
Data analysis gives you information that is vital to what areas the business needs to focus and for what reasons. The information is also essential in setting prices and determining the advertisement you are going to adopt as well as the niche you are going to target.
Optimize Your Campaigns and Website
Past data can be used to predict future outcomes of your campaigns. By studying the performance of your past campaigns and ad-targeting efforts, you can pinpoint what has worked and what may have not been your best methods. For instance, if your Facebook ads are out-performing your Google ads, it could be a sign that you should allocate your budget more toward Facebook. Further, you can optimize toward different demographics within your audience. You can also target different personas if you optimize a variety of products or services offered.
Know your business and its competitors
It’s good to know everything about your business, but it’s important you keep a track on your competitors to know who their customers are, their preferences, their purchasing habits and the advertisement strategy they have been using to acquire them.
Data analysis will help you a lot in cutting costs for business as well which can eventually help your business to grow. With analysis, you can determine the sectors of your business that are using unnecessary finances and the areas that need more focus. Through this, you will be clear on where you should cut costs and where you should invest so that it can add value to the business.
Digital Marketing + Data Analysis
Keeping in mind the trend we are going to see in this decade, data analysis is going to be of utmost importance for businesses. With Data, businesses can be in a position to anticipate what their customer needs.
Founder of Berkshire-Hathaway Peter F. Drucker says: “Every business has two functions: marketing and innovation.” The importance of data analysis in these two areas is very important for every business.
In the end, Client wants to be aware that their marketing spend is working. With digital marketing, you can use data to show exactly how the spend is being utilized and the effect it is having on the profits.
