You hear many people say "know your numbers" or "look at your analytics," but what does that mean for you as a business owner? While data allows you to monitor and improve your business's financial performance, formulate better marketing strategies, and boost operational efficiency, your business will only reap maximum benefits if you do your analysis right.
In this blog, we will discuss the wrong way of analyzing your business and how to do it right. This could be the difference maker that takes your business to the next level. Keep reading to learn more!
WRONG WAY: Looking At All the Numbers of Every Marketing Channel
Not all data will be valuable for your business. Incorporating some of these so-called "numbers" in your overall operations can give you inaccurate insights and result in poor decision-making.
Valuable data for your business is relevant, complete, accurate, consistent, and timely. On the flip side, using numbers that are not essential to the "health" of your business can mislead you into crafting a poor business strategy, give your business a dented reputation, and can result in high expenses.
Instead: Choose 1-2 Metrics of Marketing Channels That Impact Your Business's End Goal.
Think about your sales funnel and what you want your audience to do at every stage of the funnel. How do you want them to engage with your business and what actions do you want them to take? These actions are perfect metrics to monitor in your business regularly.
WRONG WAY: Looking At the Numbers of Each Marketing Channel Separately
Though the marketing channels you are using might be separate and serve different purposes, your target audience is navigating them all together. If you don’t invest in multi-channel analytics, it will be detrimental to your business and may result in additional costs (and time) that could be avoided.
Instead: Think About Metrics Based on The Consumer Journey
Since your potential clients are navigating through multiple marketing channels, it is better analyze your performance with the customer journey in mind so you can assess customer behavior across different touch points over time and how it impacts your business outcomes.
By monitoring customer experience performance, you can identify the specific areas that need improvement. You can quickly understand the journeys that enable customers to achieve their goals of making a purchase of the product they desire. You also get better insight of the places in the journey that cause friction and hamper sales.
WRONG WAY: Not Looking at Your Metrics at All.
Stop Saying, "I'm Not a Numbers Person." With the right tools and direction, you are fully capable of knowing if your business is successful or not. By ignoring your analytics, you may be limiting the growth and revenue your business can make. For example, not looking at your lead generation metrics might make you allocate more marketing dollars to channels that are generating fewer leads.
Instead: Look At Your Numbers Regularly and Take Action
This helps you understand the current health of your business so that you make better-informed decisions about how to take your business forward. Your performance can show you which products sell, uncover where to invest more resources and reveal which marketing channels are the most effective for a higher ROI.
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