"How do we know this is working?" If you can't answer that question with data, you're guessing. Marketing analytics turns guesses into proof.
Here's how to use it properly.
Step 1: Define What Success Looks Like
Before you dive into data, decide what you're actually trying to achieve. Common objectives:
- Lead generation: Number of qualified leads per month
- Sales: Revenue generated from marketing channels
- Brand awareness: Impressions, reach, engagement
- Customer retention: Repeat purchase rate
Step 2: Pick the Right KPIs
Not all metrics matter. Focus on metrics that tie directly to business goals:
- Conversion rate: % of visitors who take action
- Cost per acquisition (CPA): How much to acquire one customer
- Return on ad spend (ROAS): Revenue / Ad spend
- Customer lifetime value (CLV): Total revenue from a customer over time
Vanity metrics like "page views" are meaningless unless they convert.
Step 3: Set Up Proper Tracking
Use Google Analytics 4 (GA4) to track everything:
- Set up goals: Track form submissions, purchases, downloads
- Enable eCommerce tracking: Track revenue by source
- Use UTM parameters: Tag all campaigns to know what's driving traffic
Without proper tracking, you're flying blind.
Step 4: Build a Dashboard
Don't waste time digging through reports. Build a dashboard with your key metrics in Google Data Studio or Looker Studio (free):
- Real-time traffic
- Conversion by channel (organic, paid, social)
- Revenue trends
- Top-performing content
Check it weekly. Make decisions based on trends, not daily fluctuations.
Step 5: Calculate ROI
The formula executives care about:
ROI = (Revenue - Cost) / Cost x 100
Example: You spent $10,000 on ads and generated $50,000 in revenue.
ROI = ($50,000 - $10,000) / $10,000 x 100 = 400% ROI
That's the language stakeholders understand.
Step 6: Report Results (The Right Way)
When presenting to stakeholders:
- Start with the bottom line (revenue, leads)
- Show trends over time (month-over-month, year-over-year)
- Highlight wins AND areas for improvement
- Recommend next steps based on data
Understanding marketing attribution will help you assign credit accurately across channels.
Conclusion
Marketing analytics isn't about collecting data�it's about using data to make better decisions. Track the right metrics, build dashboards, and prove your value with ROI.
Ready to dive deeper? Learn the fundamentals of digital marketing.