Performance Analysis

There are three stages in marketing. Creating, implementing, and analysis of a marketing strategy. Marketers around the world put tons of effort into the creation and implementation of a digital marketing strategy. They don’t put much effort into the analysis process. However, it is equally important.

What is performance analysis?

Performance analysis in marketing is the process of monitoring and analyzing an ongoing marketing campaign. It helps businesses estimate the progress of their marketing campaign and achieve success. Advertisers track the continuing activity to determine whether there is room for improvement or not.

A marketing team can conduct it or hire an external digital marketing agency majoring in performance analysis. They aim to identify the successful and unsuccessful ways so that future marketing campaigns can increase ROI, brand recognition, or meet other marketing KPIs.

Data used in marketing performance analysis

A marketing performance assessment is conducted at the end of a specific fiscal period. It influences budgeting decisions and provides the marketing team with an insight into the changes in the marketing strategy.

Data regarding website traffic during the campaign or a period. It includes various traffic sources, audience attributes, and periodic increases and decreases in website traffic.
Data regarding the efficiency of promotional activities, including the date and time they took effect.
Data regarding lead and sales generation and consumer attribute assessment.
Details of constituent marketing strategies, including email marketing, content marketing, SEO, social media, and many more.
The budget and ROI of various marketing strategies.

Analyzing and storing the performance analysis data supports a marketing strategy's evolution. The comparison of data between two successive terms helps marketers understand what works for their target audience and what does not.

After the mobilization of information, it's time to look at the marketing channels and tactics that drove most traffic and resulted in most sales. On the contrary, a performance analysis report must also contain information regarding the shortcomings of the previous marketing strategy.

The next step is to incorporate learnings into the upcoming marketing strategy. Invest more in the tactics and channels that work best to your marketing advantage and decrease the budget quota for the channels and tactics that hinders your marketing approach.

How to measure the performance of a marketing campaign?

The success of your marketing campaign depends on the achievement of your marketing goals. Begin by defining your marketing goals, and set up essential matrices that best define your marketing goals. For example, if your goal is to increase likes on your social media page, your success is defined by the number of your social media likes. On the other hand, if your goal is to sell to most consumers, your essential matrice would be the conversion rates.

Here are some of the most common matrices marketers use to measure the success of your marketing campaign.

Return on investment(ROI):- Return on investment is the most common metric to measure the progress of a marketing campaign. Are your marketing investments worth it? It helps you estimate the efficiency of your marketing campaign.
Conversion rate:- A conversion rate is the ratio of the number of consumers to visitors multiplied by 100. In other words, the number of consumers per hundred visitors. It enables businesses to differentiate between the visitors and the buyers on a website.
Cost per sale:- Think of it as a smaller version of return on investment. It provides further depth into the return on investments. Businesses can identify the cost required to convert a visitor into a customer.
Social media metrics:- Social media is one of the indispensable parts of a marketing strategy. Many businesses use it as the primary marketing channel or the sales channel. The performance of a social media marketing campaign is measured through social media matrices, such as likes, comments, and shares. The higher the number of matrices, the better the performance.

What are the tools used for performance analysis?

There are various types of web analytics tools suitable for certain platforms and marketing goals. Usually, marketers deal with five main kinds of analytics:

Web analytics
Social media marketing analytics
Lead generation and attribution
SEO analytics tools
Email marketing analytics

How to use performance analysis data to the best of your advantage?

The sole purpose of performance analysis is to improve a marketing strategy. Businesses must clearly define their marketing goals to set particulars for the performance analysis. First, clearly define your essential matrices. These matrices will help you measure the performance of your marketing campaign.

For example, suppose you are an eCommerce business with the prime marketing goal of increasing sales. Your preferred marketing matrices, in this case, would be the conversion rates and cost per sale. Look for the shortcomings in your marketing strategy hindering your business sales volume. For example, irrelevant target audience or hindered ad copies.

In this case, you need to find accurate attributes defining your target audience and increase the quality score of your ad copies. Test the implementation if you have multiple theories to make data-driven decisions.

Conclusion

Performance analysis is among the essentials of digital marketing. It enables marketers to evaluate the progress of their marketing strategy. Advertisers leverage data from various analytics tools and analyze stats to make constructive decisions. Performance analysis helps marketers make data-driven decisions.

Performance analysis provides the reasons behind the failure or success of a marketing campaign. Once you know the shortcomings of a strategy, you can work towards its improvement.