Small Businesses And Analytics: Which Metrics To Track
Small and medium businesses are at the forefront of big data adoption. Did you know that businesses with fewer than 100 employees are three times more likely to adopt these solutions compared to larger corporations? Analytics and big data represent a huge potential for growth for small businesses, but it’s important to have a well-defined strategy and to focus on the KPIs that matter. Here are some actionable KPIs you should start tracking.
Conversion And Bounce Rate
Segment your conversion rate per traffic source or type of visitor. These numbers will give you an idea of where to focus your efforts to either boost conversions or focus on the channels that are most likely to bring in qualified leads.
Your bounce rate will tell you how many users performed an action such as visiting a page, opening an email, or using a search feature on your site to find a product but ultimately decided against making a purchase.
Your bounce rate can indicate that there is an issue with content, slow page loading speeds, or a problem with how you designed your sales funnel. Compare the bounce rate between channels and track it as you improve your content.
A/B Testing Results
A/B testing is accessible to businesses of any size, thanks to Google Analytics. This strategy allows you to capture data and compare two versions of your homepage, two versions of an ad, or even two different discounts.
Decide which KPIs you want to track to determine success or failure and compare how two options perform. You can perform A/B testing for two offers by monitoring how many users redeem each offer or keep track of clicks to determine the best position for a design element.
Focus on testing one element at a time so you can pinpoint what makes the difference between two pages and use A/B testing to continuously optimize your content.
Understanding The Customer Journey
Use analytics to understand better how people find your content.
Google Campaign URL Builder
This tool lets you add UTM parameters to your URLs. You can use UTM parameters to indicate the source of a campaign or tag a URL with the name of a campaign. Using UTM parameters means you can track which specific ad or link a visitor followed.
Attribution analytics give you a snapshot of the touchpoints a lead interacted with before making a purchase. You need to decide which attribution model is most relevant to track:
- You can track the last channel a customer clicked through before a purchase.
- You can look at the last Google Ads a customer clicked on.
- Some models focus on which channel a customer first interacted with.
- You can use a linear model to see all the touchpoints a customer interacted with in chronological order.
Social Media Analytics
It’s easy to get overwhelmed with social media analytics due to the amount of data available. “Vanity metrics” such as your number of followers are only relevant to a certain point. You need to focus on KPIs that help you assess and improve engagement, so you can turn social media into a powerful channel that drives sales.
With 71 percent of people being likely to purchase a product after a positive experience on social media, positive engagement should be one of your priorities. Here is how you can derive actionable social media analytics:
- Integrate social media into your attribution model to track sales from customers who followed a link shared on social media.
- Use UTM parameters for the URLs you share on social media. Using unique parameters for each post will give you an idea of the kind of content that generates traffic.
- The number of likes, comments and shares are worth looking into, so you can figure out the best time of day to post and determine the formats that grab the attention of your audience.
Impressions are another important KPI to focus on. Impressions show how many users a post has reached. Compare impressions with actions such as liking, commenting, sharing or following a link to assess how noticeable a post is.
Don’t let analytics become the key component of your social media marketing campaign. Focus on answering people, delivering a positive experience and sharing valuable content on these platforms.
Average Cost Of A Lead Or Sale And ROI
Calculate the average cost of a lead or sale and assessing your ROI will help you make sure that your marketing efforts are paying off. Here is how you can figure out the average cost of a lead or sale:
- Determine how you will define what a lead is.
- Keep track of the number of new leads generated over a specific period. Calculate how much you spent on marketing for this period and divide it by the number of leads.
- Segment leads and spending to calculate the cost of a lead for each channel.
- Calculate the average cost of a sale by the total amount spent on marketing per the total number of sales.
- You can also segment the average cost of a sale per channel based on the results of your attribution model.
You can calculate your ROI by dividing your revenues by the amount spent on marketing. Segment your ROI to assess which channels and campaigns are the most profitable.
Going Further With Analytics
The KPIs mentioned above will help you assess how your marketing efforts are paying off and provide you with actionable data you can use to grow your business. If you decide to go further with analytics, think about going beyond quantitative data and looking at qualitative analytics, for instance, by using customer satisfaction surveys or even interviews and focus groups.
Once you have a dataset with historical data for your sales, think about using predictive analytics to identify trends and forecast demand. This type of dataset could also help you identify new opportunities for growth.
Business analytics don’t need to be overly complex. You can get results by focusing on the KPIs that help you derive actionable insights. Schedule regular reviews of your data and use these KPIs in your decision-making process.
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