Understanding Your Data Analytics
As a business owner, you have likely been exposed to some form of data analytics; website, social media, or search engine, to name a few. But have you taken the time to get to know what all of those numbers mean, and how they impact your business? Or do you simply glance over the reports you receive, and file them away under, “WTF?”, and go about your day?
Getting to know the terminology and meanings of your analytics can seem like an overwhelming task. The truth is, learning about your analytics is no harder than what you went through to learn everything else about your business to get you where you are today. As with every aspect of your business, knowing your numbers is essential.
Let’s start at the top; What are data analytics? In simple terms, the data analytics you are provided by your SAAS (software as a service) products are performance and demographic data points, broken down into specific categorized views. The categories will vary per source, and you may even notice small terminology differences per platform. The three most common sources you will receive analytics from are the examples previously listed; website host, search engine business pages, and social media accounts.
Depending on the host platform you are using, your analytics can acquire certain data information from your users, and has the ability to consolidate this information into a tangible reporting format. When you access your reporting interface, you should be provided with an option to set a specific date range. This is an important feature for consistent date-ranged reporting, but it is also useful for comparative reporting. Most businesses tend to execute their consistent date-ranged reporting monthly, as numbers tend to ebb and flow more dramatically in the short term. Comparative reporting is most useful when used to compare the data from two specific date ranges to measure the difference between targeted data points. For instance, if your business launches a marketing campaign to target an underperforming service/product, running a comparative report would reveal whether or not that campaign was successful by checking for an increase in traffic or conversions for that specific service/product.
The most common data provided on website analytics include traffic numbers and their sources, geography, keywords, content performance, and conversions. Within each one of these categories, there is a more comprehensive breakdown of the data. For example, within the content performance category, you would receive insights into how each page of your website performs respectively by providing you with an average time spent on the page, number of views the page has received, the bounce rate percentage for the page, and the exit rate percentage for the page. This level of insight is important because it allows you to adjust your user flows, interface, and experience based on the feedback from your analytics. For instance, if you have created an informational page that contains a lengthy amount of content to address user inquiries, your analytics should show a high average time on page, and a high exit rate. If the page shows a low average time on page, you most likely have a user experience issue; content is too drab, design isn’t engaging or interactive, font is too small, etc. If the page has a low exit rate, that means that your users did not find the answer to their question; exit rate reflects the percent of users that visited your web page and left your website without further action. Therefore, if your informational page has a low exit rate, your users are telling you that you either have the wrong information available, or not enough information.
For search engine analytics, the most common data provided includes search type, view type, and action type. As with your website analytics, the search analytic categories each provide a comprehensive breakdown. If you look at the action type category, you will find website actions, directions actions, and phone call actions. The data provided for each of these actions is incredibly valuable to your marketing and advertising efforts by focusing on conversions. Let’s say you decided to run a location ad on Google that targets a 10 mile radius for users that search a handful of keyword options. The purpose of any marketing ad is to source some form of a predetermined conversion. In the instance of a location ad, the primary goal would be a return on directions actions, with a secondary goal of an increase in website and phone call actions. With a location ad, you are targeting users already in your area (a 10 mile radius in our example) that search for keywords that relate to your products or services, with the intent to increase foot traffic. Therefore, if your ad campaign reveals low action conversions, you know you need to adjust your keywords, or the day of the week or time your ad runs.
When we get into social media analytics, the most common categories include reach, engagement, and actions. If you break down the engagement category, you will find likes/reactions, comments, and shares most commonly. While there are a number of social media platforms out there, and they all use different terms to set themselves apart, at the end of the day they all boil down to these three primary data points. These analytics are an integral piece of your marketing strategy because they provide user preferences regarding your content, design, and even the day and time you post. If we take the popularized (but often ineffective in the long run) engagement strategy of, “Like/comment/share for a chance to win [enter random giveaway prize here]”, as an example, the desired results are clear as day. This method is used to boost engagement, with a secondary goal of increasing followers. If your engagement numbers are low, you know you need to adjust the campaign; change the prize, boost the post with an ad, or change when you post. Just as with all marketing, social media marketing requires a degree of trial and error to hone in on your target market’s preferences. Studying these analytics will provide you with the insights you need to tailor your brand voice and story to your audience.
Understanding and keeping track of your data analytics is absolutely imperative to the success and sustainability of your business. It can also take years of real world experience to fully grasp your analytics from the highest viewpoint. So what better time to start the learning process than today?! Start diving into the automated performance emails you receive from your SAAS products, or the performance updates you receive from your marketing team. Ask questions, whether to someone on your team, or to Google. The more time you spend learning about your numbers, the less scary and overwhelming they become.
If you would like to learn more about your analytics, what they mean, and how they impact your business, you can follow up with our comprehensive analytic glossary here.
When you’re ready to take the next step, we’re here for you.
