Using analytics to boost your digital marketing strategy
Understanding what your customers are looking for each time they do an online search can help you lay a solid foundation for business growth.
Google Analytics is a free tool that provides metrics about web traffic and user behaviour. When used properly this tool can provide key insights into the needs and buying patterns of your market.
As digital marketing agency and CCIWA member Bonfire explains, businesses can use these insights to help formulate a targeted digital marketing strategy.
Gathering the right information
It pays to know what you are looking for when navigating Google Analytics.
Bonfire Digital Advisor David Sierakowski says gathering and integrating this information correctly paves the way for a much more stable investment.
More importantly, it helps build a strategy that doesn't deliver any surprises.
Bonfire Senior Digital Advisor and Partner Evan Dela-Grammaticas says it's important to gather all necessary key metrics, which are integrated into tools. This can help inform the marketing budget and allows you, as the business owner, to set some realistic and achievable goals.
Establishing cost per acquisition
Although the illustration below is somewhat simplified, it highlights how you can develop an estimated cost per acquisition (CPA).
In the above example, a Perth-managed IT business establishes that 10,000 Google searches translates to 1000 visits to its website.
Of visitors to its site, an average of 40 end up contacting the company per month and about 14 sales are generated.
From this, we can work out that 71.43 visitors translates to a sale (1000/14).
At the time of the research, the going rate charged by Google to attract visitors for IT-related keywords was about $14.52 per click.
Therefore, if the company attracts 71.43 visitors to its site at a cost of $14.52 per click, the cost per acquisition (CPA) is $1037.
Knowing your CPA helps justify your investment in marketing, but more than that, it should also act as a key metric to inform your budget.
When it comes to important key metrics, knowing how much you need to invest to get a new client versus how much profit you would make from a new client can be extremely powerful.
Developing your website and tracking your return
Influencing your conversion rate and lowering your CPA is often most easily done by developing a streamlined website.
To do this, you need to understand what your audience is doing and define your message.
Bonfire’s Partner and Senior Digital Advisor Alex Gavalas suggests optimising the website in line with the data and information gathered during the early planning phases to create a strong digital campaign.
Tools and resources
Bonfire is offering its Google Analytics tool to CCIWA members for free.