In this report, I will Identify and understand the importance of analytics to the marketing manager. I will identify five actionable KPIs and compare to meaningful time periods. I will describe each KPIs and look into why there are so important and what’s is their issue. Lastly, I will talk discuss what actions the marketing manager could take to improve on these KPIs. It was therefore only feasible to explore a handful of KPIs, in line with the brief, which can be seen in the table of contents.
Importance of analytics to the marketing manager
Analytics is the discovery, interpretation, and communication of meaningful patterns in data. Its in valuable areas rich with recorded information, analytics relies on the simultaneous application of statistics, computer programming and operations research to quantify performance. (En.wikipedia.org. (2018). Analytics)
Analytics Measures your website that visitors from the first time they visit your website to the time they are a valuable new customer.
Analytics focus is on real market feedback. Analytics keep up with the interests and actions of the subscribers and customers that your business is focused on serving.
Analytics is important to the marketing manager because it is used to measure and track your results across time to understand your visitors, leads, prospect and to understand, track and improve the mechanisms used to convert your first visitor into a valuable customer. (Marcos Durban 2018)
Marketers getting involved in analytics, select website and social media analytics as their starting points. Website analytics typically measure specific actions like clicks, page views, and conversions. By connecting all areas of marketing, including offline efforts, with sales and lead generation results, marketing analytics reveal the direct impact marketing has on pipeline generation and revenue growth. (Jesse Mawhinney 2017)
A lot of marketers spend hours/days in web analytics tools like Google Analytics, looking around at the outcome of their efforts as it relates to site performance, but don’t go any further than that. Encase they lose all their information.
Marketing analytics helps us see how everything plays off each other and decide how we might want to invest moving forward. Managers have to look into how you spend your time, how you build out your team, and the resources you invest in channels and efforts are critical steps to achieving marketing team success. Marketing analytics goes beyond traditional website KPIs.
Manager leaders tend to rely on just one planning and performance-management approach. They quickly find that even the most advanced single methodology has limits. (Mckinsey 2018)
Managing people can be just as challenging as managing technologies. Once the right organizational skillsets are in place you can provide your team with the tools, processes, and additional resources it needs to operate a successful measurement program. (Natasha Moonka)
It’s important because the marketing manager needs to ensure to organize the analytics function and manage the team
Five actionable KPIs
Key Performance Indicators (KPIs) are one of the most over-used and little-understood terms in business development and management. They are often taken to any metric or data used to measure business performance. The role KPIs play is bigger and more necessary. KPIs are one of the most important guideposts for any business. most businesses should have them. KPIs are an actionable scorecard that keeps your strategy on the right path. They enable you to manage, control and achieve better business results. (Mar 14, 2017 – by Rob Petersen) it’s also described as “The data necessary to understand the implications of whatever he/she sees and the wherewithal to take appropriate action.” – Shalin Shah
These are five actionable KPIs
2. New users
4. Page views
5. Bounce rate
From comparing two time periods from January to June we can see that there are more people join from January to June rather than January to January.
05-Jan-2017 – 05-Jan-2017
New Visitor 1,687 Users
Returning Visitor 669 Users
04-Jan-2017 – 04-Jun-2017
New Visitor 267,133 Users
Returning Visitor 46,119 Users
1. Users are the first three metrics they will focus on how engaged your customers are with your app. They work with companies across all industries and have noticed certain KPIs that are most commonly used either at a time or compared to competitors.
In the User Experience & Design universe, it’s critical to understand what people are doing, and how they are using your products. Task-based usability testing is a standard method to gather this information across the industry.
Attitude is how users feel, what they say before, during or after using a product, and how this affects brand perceptions is critical. (Kuldeep Kelkar 2017)
Users are important because from reviewing employee performances to tracking company progress, there are a number of reasons why KPI’s are an important factor in assisting your company’s growth and success.
Some companies use KPI’s to measure how well they are reaching certain standards that may not be directly related to their business or profits.
The idea of determining just how much your customers are worth to you seems a bit daunting, however, that’s no excuse not to know it. This KPI is a great way to gauge your company’s ROI, and it’s a wonderful figure to help strategize future business goals. While not exact, figuring out the lifetime value of a customer involves figuring out all sales your average customer has initiated over the course of your relationship. (Chuck McMahon)
2. New users with inbound marketing, there is no other way to measure customer value than reach out to your new customers. Not only can doing this help you keep in contact, but it can also help reduce failure, it can keep your customers happy, and expand your customers lifetime value. A great way to increase the lifetime value of your customers is by developing campaigns that reach out to new customers, providing your sales team the opportunity to inform existing customers about new services, products, and resource. (Carolyn Edgecomb 2017).
It is important because it’s the best way to increase the number new website users is by frequently posting good content. The aim of this channel is to reach new users and generate sales. (Jessica 2018)
3. Sessions a session is a group of actions taken on your website by a single user in one sitting, including browsing pages, watching videos or making an online purchase. A session ends when the user navigates away, or after 30 minutes of inactivity. The terms ‘visit’ and ‘session’ are often used interchangeably.
Page duration is the time spent by a visitor on a single webpage. Comparing how long users spend on different web pages can guide improvements to your site layout. The ‘session duration’ metric is also useful because it describes how long single users remain on your site as a whole. A higher session duration rate indicates your website is more engaging and ‘sticky’. (James Richards 2017)
Pages per session is a way to keep users engaged, nurture their interest, and encourage them to take the next step. This key performance indicator is imperative for measuring interest and curiosity about your company. People believe it’s better to have a great number of pages per session. This may be an indication that the user is struggling to find important information. In order to make this judgment call, you’ll want to consider the average time on site and bounce rate to piece together a better idea of what’s going on.
A site with a high number of pages per session, low session duration, and a high bounce rate can indicate a user that cannot find relevant information. Or, a site struggling with the low number of pages viewed per session coupled with low session duration and a high bounce rate can signal low-quality content or user engagement. Two pages per session are the unofficial industry standard.( Mandy McEwen 2017 )
4. Bounce rate refers to the percentage of single-page sessions on your website: when users leave the site from the entrance page, i.e. after viewing only one page
The bounce rate explains the percentage of single-page site visits. Although bounce rate is often flagged as a ‘bad’ metric, it’s neither good nor bad. Instead, this important website KPI simply states how often site visitors stay on the same page from their initial entry. Unfortunately, there is no hard rule. You cannot judge the success of your site on a high bounce rate. For example, a user could click on a link from a search result, spend 10 minutes reading an article, then leave and complete an off-site call to action. In Google Analytics, this is technically a bounce rate even though the user took the desired action. An abnormally high bounce rate will signal that many people are leaving your website and aren’t willing to stick around to view any information. This could indicate that your user experience is off or the page contains poor or irrelevant content that does not fully explain the user’s query. (Mandy McEwen 2017)
5. Page views
A one-page view is a single view of a web page on your website by a visitor. The page view metric will show just how often visitors access the information on your website. When there are a lot of number of page views, this is due to the quality and value of the imformation on the website. It may also be contributed to visitors not being able to find what they are looking for, so they keep looking around on different pages, or they are trying to reload any pages that are not showing up correctly. Metrics show you the reason for a high number of page views. (2018 by Garenne Bigby)
There are a few actions to be taken in order for the marketing manager to improve these KPIs. It’s important for marketing managers to be as aware of the organization’s sales performance as they are for marketing initiatives. (Danielle Poleski 2016)
Here a few actions to improve KPIs:
1. Cost per Conversion, compare your cost-per-conversion to typed-in targets or delete targets to compare to the previous period.
2. Marketing Expenses and Traffic, mash up your QuickBooks and Google Analytics data to see how your marketing expenses affect your website traffic within the last 30 days.
3. Conversion Funnel, Combine the power of Google Analytics with Salesforce! Gain insight on how prospects advance through your marketing funnel over the past 30 days.
4.ROI, Compare conversion values and costs to see ROI. Calculations will be dependent on having conversion values in Google AdWords.
5. Improve Decision Making, having accurate measurements is priceless in any business and will help the business owner/manager make the most informed decision possible.
6. Improve Business Execution, when is the company is actively measuring results, they are more likely to execute and achieve the results they want.
7. Help Clarify Expectations, prioritizing some numerical targets and key performance indicators enables managers to communicate their employees in a clear way.
(Fiona McGinn | Nov 24, 2015)