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Using Analytics to Measure Marketing Effectiveness

14 Dec
Marketing team reviewing data from an analytics dashboard

Businesses measure the success of their marketing campaigns based on the revenue they generate. However, there isn’t always a straight, clear line between marketing and sales. Because sales numbers are a late indicator of success, and because the primary objective of many marketing campaigns is something other than direct sales, effective marketing teams use additional metrics to determine whether their marketing strategies are successful or not.1

This post will examine how you can use data analytics to benchmark, measure, and improve your marketing campaigns.

Defining Key Performance Indicators (KPIs)

In order to get a clear picture of how your marketing campaign is performing, start by articulating exactly what you want that campaign to accomplish. Once that larger goal is in place, you can build a detailed list of its smaller, component goals: the key performance indicators (KPIs). This alignment ensures that each KPI effectively measures—and contributes to—the success of the targeted marketing strategy. Frequently used marketing KPIs include:2

  • Website traffic: Total number of visitors to your website
  • Conversion rate: The percentage of visitors who complete a desired action
  • Lead generation: Number of new leads acquired through marketing efforts
  • Return on investment (ROI): The financial return on marketing efforts
  • Click-through rate (CTR): Percentage of people who click on a call-to-action link
  • Social media engagement: Likes, shares, comments, and overall interaction on social media platforms
  • Customer lifetime value analysis (CLV): Total revenue a business can expect from a single customer over that person’s lifetime

Implementing Data Tracking and Analysis

Implementing data tracking and analysis for marketing performance reporting lets you understand your audience, measure marketing campaign effectiveness, and make data-driven decisions.

Setting Up Analytics Tools

A web analytics tool will give you the data you need to implement and measure marketing KPIs. Google Analytics is a popular choice due to its comprehensive features and integration capabilities. It's suitable for tracking website traffic, user behavior, and various other metrics. Customize the analytics tool to suit your specific business needs. This may include setting up goals, conversion tracking, event tracking, and custom segments to monitor specific user actions or behaviors.3

Defining and Implementing Tracking Mechanisms Across Channels

Your customers can interact with your brand in multiple places on the internet, so you have the opportunity to market to them across channels. To track your metrics accurately, you’ll need to take a multi-channel approach to data analysis by conducting attribution modeling, which helps you determine which channels resulted in sales.4 Start by doing the following:5

  • Identify all the marketing channels you use, such as social media, email, search engines, and digital ads
  • Implement channel-specific trackers, such as Google Analytics or email analytics, which will allow you to track multiple channels
  • Integrate your analytics tools with other platforms, such as your customer relationship management (CRM) or advertising platforms

Deriving Insights and Making Data-Driven Decisions

Once you’ve collected your data, you can put it to work for you by extracting insights—that is, learning what you can from it—and making information-based, data-driven decisions. This allows you to develop your strategies based on concrete evidence rather than assumptions.

Interpreting Analytics Data to Uncover Trends and Patterns

Your data will help you analyze the effectiveness of your marketing strategies in achieving your goals. For instance:

  • A marketing funnel analysis will tell you where customers have dropped off at each stage of the purchasing process6
  • By examining website traffic data, you can identify peak times for customer visits and discover which marketing campaigns drive the most traffic
  • Social media analytics might reveal patterns in user engagement, showing when posts are most effective or which content types resonate with the audience
  • Sales data can highlight seasonal trends or the impact of promotional activities on revenue

Through a marketing dashboard creation that displays this data, you can share it with stakeholders. Your data can help you tailor your marketing efforts more effectively and anticipate future market movements.7

Identifying Strengths and Weaknesses in Marketing Strategies

A detailed examination of specific metrics can help you identify the strengths and weaknesses in your marketing strategies. For instance, high website traffic but low conversion rates may suggest that you’re reaching a large audience but not convincing the majority to buy. Strong email open rates coupled with low click-through rates might indicate engaging subject lines but unconvincing content. Analyzing social media might show high engagement on video content, highlighting a strength, while low interaction on text posts suggests a weakness. Similarly, a high return on ad spend (ROAS) in digital campaigns indicates effective ad placement and targeting, whereas high customer acquisition costs could point to inefficiencies in the funnel. Through such specific analyses, you can pinpoint what’s working and what’s not, allowing you to make your marketing efforts as strong and effective as possible.8

Making Data-Driven Decisions to Improve Marketing Effectiveness

The end goal of collecting data is to improve the effectiveness of your marketing strategies. You can use techniques such as A/B testing and track metrics such as conversion rates, customer engagement, and ROI to identify which marketing methods are successful and which require adjustment. Data showing high engagement on certain social media platforms might lead you to increase investment in those channels while low-performing ad campaigns could be revised or discontinued. This approach ensures that marketing resources are allocated to the most effective strategies, optimizing overall performance. Regular data review helps refine these strategies, so your marketing efforts reflect changing consumer preferences and market trends.9

Gain the expertise required of marketing leaders.

Become proficient with the software and strategies that will make your brand resonate. The Online Master of Science in Marketing (MSM) program from the Leavey School of Business builds the expertise you need for the career you want. Whether you’re a seasoned professional looking to acquire new skills or an aspiring CMO seeking a strong career start, the Online MSM curriculum will develop your fluency in digital marketing, marketing analytics, MarTech, and more.

Learn more about SCU’s expert faculty, networking opportunities, and admissions process. Schedule a call with an admissions outreach advisor today.