How Data Analytics Enhances Campaign ROI

According to recent research, companies that use data analytics for campaigns get a 115% higher return on their investment than other businesses. They also report about 93% higher profits.

To unlock these tangible benefits, it's important to understand exactly how data-driven marketing campaigns can help you unlock your full business potential. Read on to learn the ins and outs of improving a campaign ROI with data analytics.

What Are Data Analytics?

We're not about hard-to-understand jargon here, so let's break down what 'data analytics for campaigns' actually means. 

At its core, this term refers to analyzing data about your customer base and marketing campaigns. Your aim when doing so should be making strong, evidence-backed conclusions about the information you're looking at.

For example, let's say that you want to know which of three products is performing best. You'll look at sales across time, trends in customer retention, and how much money you've made from the three items vs how long they've been available.

Once you get to a conclusion, you can use the newfound knowledge to make your business perform better. If you find that Product #2 has the most sales and inspires repeat customers, you can then work on marketing that particular item more.

Marketing data analysis is generally a four-step process. The first is to figure out what data you need and how you plan to group it. You might divide data based on the demographics of buyers and clients or you might divide them numerically.

The way you collect and organize the data is up to you. To gather it, you'll usually use online sources, past records of sales/demographics/clients, and surveys. There may be other things, too, like employee interviews and environment-related sources.

At this point, you'll organize the information into a spreadsheet or other visualization software. Charts and graphs can go a long way here. Clean it up, make sure there are no errors or duplicate data points, and then look into it with analytics software and professional tools.

Data Analytics for Campaigns: A Tool for Identifying Consumers

Businesses get higher marketing ROIs when they tailor their efforts toward their main target markets. This gets information about your products and services to the people who are already looking for what you offer. They're more likely to share your values and need the services you offer.

Common demographics to look into are age, gender, occupation, and income. If you target a local market, you should specifically analyze demographics in your service area. You're already targeting a specific location, so understanding who you're working with nearby is key.

Use tools like Google Analytics to see who's visiting your website. Social media analytics that are integrated into sites like Facebook and Twitter will let you know who's liking your pages and engaging with your content. It's also a good idea to look into the demographics of your current customers to get a feel for who you're actually working with.

Better Campaign Management

Look into what channels people use to get to your website and find patterns. People may prefer clicking on a specific ad or they may find you through social media.

Understanding the channels customers use to find you lets you invest more energy into those channels. Knowing which landing pages lead to conversions means marketing the right products to visitors.

You can also research what your data-backed target audience likes to see in a marketing campaign.

If you sell commercial real estate to business owners, they're likely to enjoy professional-looking ads with photos of corporate buildings and a businesslike font. If you're a B2C luxury home renovator, your clients might find this too serious and sanitized. They'd likely prefer pops of color, elegant images, and a more sophisticated font.

Forecasting Product Demand

Assessing historical sales data lets you see what products sell well. You can see seasonal trends, spikes in popularity, and which products are steadily growing in sales.

When you do this, you can plan your campaigns based on what consumers like to see. You'll cater to demand patterns and budget appropriately during each time of year. This lets you make campaign timing better so people buy the products you're advertising.

Competitor Analysis

Those in crowded markets like home repair, real estate, and medical services have a lot of competition. To boost brand visibility, you'll need to understand your direct competitors' strengths and weaknesses.

Many of the tools you use to analyze your own website are ideal for competitor analysis. You can pop their URLs into Google Analytics for a quick overview.

But analytics tools like SEMrush, Sprout Social, and Ahrefs also let you analyze their web pages in other ways. You'll see the keywords they rank for and compare them with those that you currently rank for (per data from the same tools.) You can get a feel for which of their products perform well and which pages drive conversions.

Experts at Taradel can help you gather this information so you don't need to learn or pay for new software. We'll also provide you with intel on how you can spin what your competitors are doing right into a great campaign for you. You won't just emulate their success - you'll build on it!

Optimizing Customer Journeys

The "customer journey" is a five-step process:

• Awareness (learning about a new product)
• Consideration/Discovery (thinking about your product/company and comparing it with other ones)
• Conversion/Engagement (purchasing and trying the product)
• Loyalty (planning to work with your brand again)
• Advocacy (telling others about your brand)

Analytics boost your ROI by telling you what your customers' journeys usually look like. You can see drop-off points where consumers stop going on the journey and figure out how you can improve those steps.

When you optimize this journey, you'll get a higher ROI since the overall customer experience improves.

Start Improving Campaign ROI With Data Analytics

Now that you know the importance of data analytics for campaigns, it's time to boost your business strategy with campaign data optimization. At Taradel, we're committed to going beyond being a simple advertising service. We're excited to be your partners at every step of your business marketing strategy.

With both digital marketing experts and direct mail partnerships, we can improve campaign performance on several different levels. Start planning your campaign today to learn more about what we have to offer!