Research states that by 2023 eCommerce will make up 22% of all retail sales worldwide. In some countries, most of the general population will be shopping online more than others.
Collecting, understanding, and utilizing this data is critical for the success of any business, small or big. This process sums up the importance of digital analytics.
This article takes you through everything you need about Digital Analytics, Google Analytics, and its importance.
What is Digital Analytics?
Digital analytics is the process of tracking and measuring the performance of your business's online channels and campaigns. It collects data from multiple digital sources, and develops marketing strategies.
Digital analytics gives an insight into the impact marketing campaigns have on conversion rates. With this data, you can find the areas with a good ROI and those needing improvement. The data gathered by digital analytics can also help open up new revenue opportunities and identify those channels that are a revenue leak.
Famous examples of digital analytics are Amazon and Netflix. They use digital analytics to create new features and increase the value for existing customers. In saying that, digital analytics is valuable for companies of all sizes to help minimize churn and encourage experimentation.
Where is Digital Analytics Used?
Consider the examples of Netflix and Amazon. They always have content or product recommendations that align with our interests. This personalization is the result of digital Analytics. They use customer data and digital analytics to tailor customized recommendations for every customer.
According to a survey by MicroStrategy, 94% of businesses identified digital analytics as vital to growth. However, only 30 % have a defined strategy to utilize digital analytics. You are gambling with your marketing strategy without digital analytics and various data streams.
But where does digital marketing pull its data?
Website Data: Website data refers to customers' journey information. This information gives an insight into what attracts a customer, products, and features.
Product Data: Product data helps understand your product's use, meaning its potential and limitations. It is the information from your customer to comprehend if they are using the product as intended.
Digital Marketing Data: Digital marketing data is the information from your digital marketing campaign and social media.
Google Analytics
Google Analytics is Google's free web analytics service that provides analytical tools for marketing purposes. Google Analytics holds the most significant market presence at 30% among all analytics platforms.
As per Renolon, more than half of all websites use the Google Analytics platform.
Google Analytics is often used to track website performance and collect insights into every visitor. Businesses often use Google Analytics to obtain customer data, and develop their marketing campaign, increase website traffic and minimize churn. These valuable data provide insights that can help shape the marketing strategy.
Importance of Google Analytics
Google Analytics is an essential tool for Digital Marketers. Google Analytics helps gain a complete understanding of the customers and their journey in your business. And as such importance of Google Analytics is quite underrated.
Here are some reasons why Google Analytics is critical for every marketer.
It helps marketers make data-driven decisions.
Helps optimize marketing efforts
Works with other Google solutions like Google Ads, Google Cloud, Google Search Console, Search Ads 360, etc., and helps enhance marketing performance.
It uses Google's machine learning to gather new insights from your data.
Helps understand the customers to see how they engage with your business.
It helps understand the data and gain valuable insights.
Wrapping Up
If you own a business with an online presence, you should use a digital analytics tool, Google Analytics, to gather information and measure your performance.
Even though the success of data-driven strategies is well documented, many companies still need to adopt an analytic-centric approach. Meanwhile, they are competitors or leaving them behind, guided by a robust data-driven strategy.
It is always better to be at the forefront instead of catching up to a competitor. Incorporate Google Analytics ( or any other digital analytics platform) in your marketing campaign and give yourself a head start.
How we can help - We have a service to do analytic audits, whether it be Facebook, LinkedIn, or Google Analytics - we take a good look at what you are tracking and give you an assessment. Want to know more? Visit our Google Analytics Page