Data is everything in this present-day digital marketing landscape. Now for maximizing returns on investment (ROI), a data-driven approach is a must for measuring, analyzing and optimizing marketing efforts. Hence, ROI-driven digital marketing experts use their knowledge and tools to transform the marketing budget from an expense to a smarter strategic investment. This is what they do to get it done:
1.Embracing the Power of Analytics
Choosing the right analytics tools is the first step. There are marketing platforms that offer built-in analytics dashboards; however, Google Analytics for website traffic and user behaviour provides a more comprehensive view. The social media platform analytics offer audience insights and campaign performance.
2.A Clear Definition of Goals and KPIs
What should be achieved with digital marketing efforts? It could be website traffic, brand awareness, leads and sales. By clearly defining the marketing goals, identifying the key performance indicators (KPIs) helps in measuring progress. The common KPIs are website traffic, conversion rates, customer lifetime value and cost per acquisition.
3.Untangling the Data Web
Once the analytics tools are in place and goals defined, it's time for diving into the data. The ROI-driven digital marketing experts check for patterns, trends and insights for forming information on decision-making. Maybe some certain channels are underperforming. There could be a specific audience segment particularly engaged with content. These insights help to identify the areas in need of improvement.
4.The Best Optimization Engine In the Form of A/B Testing
A/B testing allows the ROI-driven digital marketing experts to compare two different versions of marketing elements, like a landing page headline or a social media ad creative to check which one is performing better. Through this data-driven approach, the most effective messaging and creatives are identified. Ultimately, it helps in increasing ROI.
5.Embracing the Attribution Modelling
Rarely is the customer journey linear. Customers are likely to see the ad on Facebook and then click on it. They might even browse the business website using their phone, and then complete purchasing using their laptop. Through Attribution Modelling, the ROI-driven digital marketing experts understand the important touchpoints throughout the customer journey that have influenced the conversion. This is how they can more effectively allocate the credit and budget.
6. Being Focussed On Customer Lifetime Value (CLTV)
Every customer is different. While some customers might complete the one-time purchase, some customers convert themselves into loyal brand advocates. So, the ROI-driven digital marketing experts are focussed on CLTV which measures the total revenue that customers should be expected to generate over their lifetime relationship with the brand. This is how they identify the high-value segments and accordingly tailor their marketing efforts.
7.Data-Driven Decisions In Full Action
Running the social media ads is quite common. The Analytics open up about the clicks from Facebook ads being converted at a much higher rate compared to the clicks from Instagram ads. Based on this data, the budget can be relocated for prioritizing Facebook advertising, to maximize returns on investment.
ROI-driven digital marketing experts can transform digital marketing efforts from being just a guessing game to a well-framed marketing strategy, just by leveraging data analytics. Campaigns are therefore optimized, ROI maximized when the goals are set clearly, the right metrics tracked and A/B testing as well as Attribution model used. It becomes easier to achieve marketing objectives. Data is always a powerful tool that proves to be valuable for making informed decisions. By resorting to the power of data analytics, ROI-driven digital marketing experts can check how their digital marketing efforts are soaring.
