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Importance of Data Analysis: 4 Metrics Every Business Should Track

Importance of data analysisIs your company's marketing doing well? You might think so, but the truth is often told by your data analytics. Given the vast amount of information available through digital sources, businesses of any size, industry and location can use data to generate incredible insights for the company. The importance of data analysis can't be understated. This information can drive meaningful changes to any marketing strategy, optimizing campaigns across several channels — but to realize this potential, businesses have to understand what information they're looking for. There are a lot of data points to consider, and not all of them are created equal.

No matter what kind of business you're in, here are four metrics that are worth your time.

1. Total Blog Traffic

Total traffic isn't the end-all, be-all of metrics, but there's a lot to be interpreted from this single data point. Traffic equals conversion opportunities, and while you can't exactly see the quality of this traffic in a single number, there are some implications worth considering. In general, more blog traffic indicates that companies are doing a better job of driving brand awareness. It also represents your cumulative performance across a range of marketing channels, both traditional and digital. Business 2 Community notes that your total site visits should increase over time, and if you see a drop month over month, you should take a look at your various marketing channels to figure out where the problem is.

2. CTA Click-Through Rates

Getting traffic to a blog or a piece of content is great, but are consumers taking the next step? Unlike total blog traffic, click-through rates on calls-to-action can start to shed some light on the quality of your audience. If you're getting click-throughs at a decent clip, your marketing efforts are likely on-point. If not, then you need to consider whether you're reaching your target audience, or if your targeting strategy needs change.

It's also possible that other parts of your strategy, such as the content, sales pitches or other marketing elements, are in need of revision. This metric won't tell you what's wrong, but it will lead you down a path toward solving the problem.

3. Landing Page Referrals

Your website can't work for you if front-line marketing is failing to land with consumers. Landing page referrals can tell a company how effectively it is marketing through display ads and other front-line channels. This metric basically shows how much traffic is reaching a page, and from what sources — you can segment according to each specific ad or piece of marketing content to view referral statistics for each source. When landing page referrals see low volume, marketers likely aren't putting the right foot forward through these ads or related content. This isn't a reflection of the landing pages themselves; it indicates a need to revise engagement with consumers at the first point of contact.

4. Traffic Sources

A higher number of traffic sources indicates a more diversified strategy, one that is driving traffic from a wide range of sources. This can help reflect traditional channels as well as digital outlets, and it's a critical metric for companies of every size. No brand should become too dependent on a single source of traffic. Diversification will prove more stable over time and support brand awareness efforts.

This is not a comprehensive list of metrics, but brands that focus on these first will take a big step toward grasping the importance of data analysis.

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