Web analytics is often used as part of customer relationship management analytics (CRM analytics). The analysis can include determining the likelihood that a given customer will repurchase a product after having purchased it in the past, personalizing the site to customers who visit it repeatedly, monitoring the dollar volume of purchases made by individual customers or by specific groups of customers, observing the geographic regions from which the most and the least customers visit the site and purchase specific products, and predicting which products customers are most and least likely to buy in the future. The objective is to promote specific products to those customers most likely to buy them, and to determine which products a specific customer is most likely to purchase. This can help to improve the ratio of revenue to marketing costs.
In addition to these features, Web analytics may include tracking the clickthrough and drilldown behavior of customers within the Web site, determining the sites from which customers most often arrive, and communicating with browsers to track and analyze online behavior. The results of Web analytics are provided in the form of tables, charts, and graphs.
KPIs, Marketing Metrics, Corporate Goals and Shareholder Earnings
Prior to the recent global melt-down of 2008-2009, many executives believed that marketing, branding, customer interactions and social media investments were mostly about creating buzz around an organization’s product or service offering — an intangible investment that didn’t require justification. The new post-recession paradigm calls for senior executives and marketers alike to create alignment between key performance indicators (KPIs), marketing performance metrics, corporate goals and shareholder earnings in order to prove value and remain relevant to multiple stakeholders. Hypatia Research LLC studies confirm that more than 50% of marketing departments, sales and business development professionals, and customer service and support teams continue to be tasked and measured in a non-integrated, often ad hoc, fashion. In short, companies actually committed to measuring marketing performance continue to rely on a patchwork of linear and non-integrated metrics.
Currently, a majority of organizations surveyed report utilizing customer data analytics for five main purposes. Surprisingly, less than a third of respondents utilize analytics for strategic corporate planning purposes or to identify high-value customers and proactively interact with customers. Nearly half of companies use analytics to retain customers, but if the customers being actively retained happen to fit the profile of “no- or low-profitability customers,” the organization may actually lose money on this effort. Without a digital foundation upon which to conduct comprehensive customer analysis, companies risk pursuing top-line growth at the expense of attaining profit margins. What’s a marketing executive to do?
Social Media Analytics
Social Media has emerged as the most powerful medium to measure the performance of a brand. The ubiquitous web and its social media platforms allow the creation or destruction of a product or service based on conversations on social media. Some of the offerings from Teledec that leverage social media analytics include:
- Online Reputation Management
- Real Time Market Intelligence for Sales