New technology makes it easy to collect mass amounts of data about customers on everything from what they’re buying to what emails they’re reading, what they’re doing on social media, and how much time they’re spending on your website. With all this data readily available, the question is how does it help you better market your small business...without having an advanced degree in data analysis? Luckily, it’s not as hard as it sounds if you follow this 5-step strategy to using analytics in your marketing efforts.
1. Identify the Goal of Your Marketing Campaign
It’s easy to get caught up in the weeds when looking at customer data. Something as simple as looking at the analytics toolbar for one of your social media pages can send you down a rabbit hole of “impressions,” “visits,” and “mentions” that are meaningless without context.
The key to successfully using analytics in marketing is to think about the big picture first and identify a specific marketing goal. For example, if your goal is to encourage your existing customers to visit more frequently, you could A) offer a deal or B) announce new products. Both Campaign A and Campaign B serve the same purpose here. With that understanding, we’re now one step closer to measuring how effective those campaigns are.
2. Figure out How to Measure the Success of a Campaign
Once you’ve identified the goal of a marketing campaign, it’s much easier to figure out what metric you need to measure in order to test the success of your campaign. Using the first of the two examples above, Campaign A could be measured in several different ways.
- You could track how many customers actually redeem your special deal to determine whether it’s a compelling deal for customers or not.
- You could measure and compare your daily revenue before and after offering the deal to see if there is a significant improvement.
- You could track the average transaction amount of customers who redeem the deal to see if the deal is resulting in significant upsells.
3. Identify the Tools You Need to Measure Your Success
This is where the technology comes in. After identifying the metric(s) you want to measure, do some quick research to find the analytic tool you need. Chances are you already have access to the right analytics tool on a website you already use.
For example, if you are using the SpotOn platform, which collects data on your payment processing hardware and integrates it with a powerful marketing software suite, all of the metrics we discussed above for Campaign A can easily be measured right from your SpotOn dashboard.
4. Run Your Campaign
With the right analytics tool in place to measure your campaign, you’re ready to actually deploy the campaign. Send out that marketing deal and see what happens!
5. Evaluate the Success of Your Campaign
After the completion of your campaign, it’s time to sit down and look at the analytic data you collected. How many people ended up redeeming your deal? Were those customers just stopping in to get their discount or did they buy additional items and services? Was there a boost in revenue over the period that you ran the campaign?
You’ll also want to take into consideration the cost of running your campaign in order to determine your return on investment (ROI). If you paid to promote your deal on Facebook, for example, you’d want to compare the cost of running that promotion to the net revenue the deal generated. Obviously, the goal is to make more than you spend, and with analytics at your fingertips you’ll be able to figure that out.
From there, it’s all about refining your marketing campaigns and repeating this 5-step process.
Ready to incorporate analytics into your marketing efforts? The SpotOn platform makes it easy by combining analytics with marketing, reviews, loyalty, and payments.