Analyzing the Right Data for Digital Marketing

Online businesses collect a huge amount of data. But without detailed analysis, those data would be just a set of useless random numbers.

Your digital marketing strategy will never be successful if you do not perform data analysis in parallel. 

Digital Marketing Strategy

Analyzing the right data allows you to determine if your digital marketing efforts are paying off. A digital marketing strategy based on theory and experience may quickly become outdated and ineffective.

By analyzing the right data, companies can experience several benefits. Among them are improved customer service, increased efficiency, increased sales, and competitiveness. 

Data analysis can help you predict future business moves, activities, and trends.

Analyzing the data and knowing which data to focus on are equally important. In case you’re not sure you can do it yourself, you can rely on professionals, such as this web design company Florida.

Today 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 point on our list may seem obvious – increased revenue shows that your marketing strategy is successful. 

Unfortunately, it is difficult to tell whether your income increased as a result of effective digital marketing or seasonal demand 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. In short – it indicates the number of customers who are loyal to the brand. 

Numbers are expressed as percentages, which can range from 0 to 100. For example, a customer retention rate of 100% is always good, while 15% is considered weak. Everything in between can vary depending on the business niche.

Measuring the retention rate is absolutely essential. 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 your customers have used. Also, you can plan a different retargeting marketing strategy based on feedback.

#3 Engagement in Social Media

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

Social Media Engagement

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

You can easily calculate your clients’ engagement rate. First, divide the number of interactions (likes, shares, comments) by the number of followers and then multiply the result by 100. 

Consider an example: If you have 2,000 followers and 200 interactions (likes, shares, comments), then you have to divide 2,000 by 200. The number you get is the engagement rate for a given post (%).

The engagement rate is different for all social networks. For example, 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. In addition, you can choose Hootsuite as your social media management tool since it supports over 35 social sites.

#4 Analyze Your CPC (Cost Per Click) Investment

CPC is one of the simplest metrics to analyze the performance of your ads. How successful your CPC campaign is will depend on how many people clicked on your ad, compared to how much the ad cost. Depending on the insights you gain, you can modify your strategy and retarget your target group if necessary.

It is easy to calculate CPC – multiply your maximum cost-per-conversion by your conversion rate to determine your max 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. Your maximum cost-per-click is 50 cents.

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

There are many platforms that can calculate your CPC automatically. But even if this is not the case, you can get the required number yourself by following the process described above.

#5 Monitor the Amount of Traffic Your Website Gets

Having a large amount of traffic on your website has several benefits. In short – the more people see your site, the more potential customers you will have.

The number of visitors = Number of opportunities

The traffic on your site indicates whether your marketing investment is paying off. As long as the traffic increases, it is an indication that the marketing strategy is effective. 

You can track the traffic on your site using Google Analytics, which will give you an idea of where you stand. You can also use other tools, including Adobe Analytics, Matomo, Clicky, or Phantom.

A site traffic analysis will do more than show you numbers – it will collect data about your visitors. It will help you raise awareness and target your future customers more effectively. 

Quantity is not more important than quality. Information about your customers will help you create marketing strategies that will target your ideal clients.

#6 Analyze and Update Your Keywords

A keyword analysis is crucial because it reveals how organic traffic arrives at your website. In addition, it shows which phrases your audience uses in search engines when looking for your products and services.

Analyze Keywords

One of the best keyword analysis tools is Google AdWords. By using this tool, you will not only 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 communication channels. Such as within your website content, posts on social networks, calls to action, etc.

You must regularly monitor and update keywords in order to stay one step ahead of your competition.

#7 ROI and ROAS

We all know the importance of ROI (return on investment), which is usually apparent. But ROAS (return on advertising spent) is equally important. 

ROI refers to the ratio between the amount of money spent on advertising and the amount of revenue generated. Of course, the calculation is evident here. You should earn more than you invest in advertising.

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

With ROAS, you’ll be able to determine the performance of your ads and then customize them accordingly. 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 a 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.

#8 Check Your Conversion Rates

The conversion rate is calculated as the number of conversions divided by the number of visitors. It will show how many visitors to your site made a purchase. 

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

An acceptable conversion rate is anything from 2 to 5%. Sometimes even an increase of 0.5% can be an excellent 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 answered your questions. 

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

Use the numerous tools that provide correct and detailed information about your digital marketing efforts. As a result, increase your investment in revenue-generating marketing channels.

Rekhilesh Adiyeri
Rekhilesh Adiyeri

Hello! I'm Rekhilesh Adiyeri, an affiliate marketing expert and digital content creator from Kerala, India. I started earning an income online as a side hustle while I was in college in 2008. Within these 15 years, I've built a digital entrepreneur empire. I do business with top-tier countries using my simple English, despite English not being my first or second language. And I want to help motivate people to succeed by doing profitable business online. Right now, I am on a mission to be a better coach who can help more people achieve their dreams of financial freedom. So follow me on your favorite social media - there are lots more coming your way!

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