Digital analytics

Exploring the Role of Analytics in Digital Marketing to Increase ROI

Apr 5, 2023

6 mins read

Exploring the Role of Analytics in Digital Marketing to Increase ROI

Any business that is not leveraging the power of data is not doing business. In today’s digital age, when businesses have access to a wealth of data, not using that data to get valuable insights into their customers’ behavior is criminal.

With the help of digital marketing analytics, companies can unlock the power of their customer data and use it to drive their marketing strategies, improve ROI, and stay ahead of the competition.

In this blog post, we will explore the role of analytics in digital marketing and how it can be leveraged to increase ROI. Let’s dive in!

What is digital marketing analytics?

Digital marketing analytics is the process of measuring, managing, and analyzing data from digital marketing channels to optimize and improve the effectiveness and ROI of marketing efforts.

It involves collecting and analyzing data from various digital marketing channels, including websites, social media, email, and products, to arrive at actionable data insights which lead to data-backed decision marking.

Web analytics with Usermaven

Importance of analytics in digital marketing

A digital platform cannot work unless and until businesses are using data to make informed marketing decisions. Here are some points to highlight the importance of digital marketing:

Actionable insights

When working on your marketing campaigns, you need to look at certain data sets to help you validate whether your marketing efforts are going to be rewarding or not. These data sets can be data from the visitors, customers’ data, campaign data, behavioral patterns etc.

Digital analytics in marketing are used to deliver valuable insights into your audience, campaigns, and marketing channels. These insights lead to crafting a marketing message that resonates with your target audience.

Data-backed decisions

With a better understanding of your customer’s needs, problems, and preferences, you can sharpen your decision-making. You can adjust your campaigns and strategies in real time.

You can also identify new opportunities for growth and expansion based on the prevailing trends in the market and competitors’ activity.

Digital marketing analytics enables continuous improvement by providing insights into what is working and what is not.

Channel optimization

Analytics are of significant importance in determining the effectiveness of your marketing channel. Understanding what’s working and what’s not is possible when tracking your marketing initiatives’ performance.

For instance, you can find out how visitors interact with your website, which pages receive the most traffic, which have a high bounce rate, and which pages generate the most conversions.

Increased ROI

Analytics helps digital marketing teams to identify which channels and tactics drive the most ROI, allowing them to allocate resources more effectively and maximize the impact of their marketing investments.

This way, costs can be reduced or minimized, leading to more efficient marketing budgets.

Where do digital analytics come from?

Digital analytics can come from data collected through the following sources:

1. Website data

Website data includes information such as:

  • Traffic sources, like search engines or social media platforms, indicate where the users are coming from.
  • User demographics such as age, gender, location, and other visitor characteristics are also part of the website data.
  • Behavior flow is another website data that consists of the path users take through the website, such as page visits and time spent on each page.
  • Data related to user actions on the website, such as purchasing or filling out a form. It is known as conversion tracking.

    Website performance data includes website speed, uptime, loading speed, and other details about the website’s technical functionality.

2. Product data

Digital products are another great source of data used in marketing analytics:

  • User behavior data on how users interact with the product, such as which features they use most frequently and where they tend to drop off or abandon the product.
  • Performance data on the product’s performance, such as its uptime, response time, and error rate.
  • Business data includes key business metrics, such as revenue, conversion rates, and customer acquisition cost.
  • Usage data indicates how frequently and consistently users use the product, their engagement level, and retention rate.

    Feedback data provides data on user feedback and sentiment, such as ratings, reviews, and comments.

Product insights overview using Usermaven

3. Marketing campaigns

Marketing campaigns offer various types of digital data that can be used for digital marketing analytics, including:

  • Campaign performance  
  • Customer behavior data include click-through rates, time spent on landing pages, bounce, and exit rates.
  • Sales and revenue data generated from campaign activities, including conversion rates, revenue per user, and return on investment (ROI)
  • Social media engagement data such as likes, shares, comments, and follower growth
  • Email marketing data includes open, click-through, bounce, and unsubscribe rates.

4. Online surveys

  • Attitudinal data means customer preferences, opinions, and perceptions about a business, its products, and customer services.
  • Behavioral data collected through surveys include data on customer behavior such as purchase history,
    frequency of visits, etc.
  • Customer satisfaction data that measures customer satisfaction levels identifies pain points and provides feedback on products and services.

5 Ways to use digital marketing analytics to increase marketing ROI

Amongst many ways, let’s look at 5 applications of data analytics in digital marketing to increase marketing ROI.

1. Get unified customer data from all platforms

One key use of digital marketing analytics is accessing customer data across multiple channels for a unified view. Identify all the platforms your business has a presence on, such as websites, social media, email, etc.  Integrate your data analytics software with all these platforms to track user behavior.

Moreover, you can use a customer relationship management (CRM) tool to bring all of your data to one place and connect it with an analytics tool to build a unified customer profile. It results in a better understanding of your customers and helps identify patterns, trends, and insights that can inform your digital marketing analytics strategy and ultimately increase your ROI.

2. Track the customer journey

Businesses can optimize marketing campaigns across customer journey stages (awareness, consideration, conversion, and retention).

Each stage has different messaging and metrics to engage its effectiveness. At the awareness stage, you educate your customers about your product and focus on building and engaging the organic audience. At the consideration and conversion stage, you entice your audience to take action, such as sign-up for a newsletter, purchasing a product, etc. Here, the focus is optimizing conversions and filling any gaps causing drop-offs.

Understand user journey through Usermaven

Finally, at the retention stage, where the audience has converted into a paying customer, your efforts are directed toward delivering value and personalizing and optimizing the user experience. Boost customer loyalty with retention campaigns, loyalty programs, and exclusive discounts.

3. Track and optimize marketing campaigns

Digital marketing analytics can help track and optimize marketing campaigns by providing detailed information on campaign performance metrics such as impressions, clicks, conversions, bounce rate, engagement rate, and ROI.

Maximizing the return on your ad spend for paid marketing campaigns is especially important.

Digital marketing analytics tie your marketing efforts to ROI and thus are a means to validate your marketing budget.

4. Predict your user’s behavior

To further leverage the data collected from your marketing channels, you can use predictive modeling techniques to predict your user’s behavior in the future. Various predictive analytics techniques, such as regression data analysis, decision trees, and clustering, identify the trends and patterns in your user’s past behavior and predict what they will likely do next.

These predictions allow you to create and monitor personalized strategies and craft a personalized user experience. Digital marketing analytics is an ongoing process that requires regular monitoring and adjustment to ensure you get the best results.

5. Innovative products and opportunities

By identifying and analyzing customer behavior, preferences, and needs, businesses can unlock new product opportunities and create innovative solutions to customer needs and problems.

Digital marketing analytics allows businesses to understand which product features or aspects are most popular and which need improvement or refinement.

By using data-driven insights to inform product development and innovation, businesses can create products more likely to succeed in the market, resulting in increased revenue and customer satisfaction.

Top digital marketing analytics tools


Usermaven is a powerful yet simple website and product analytics tool for marketers and product teams. It is privacy-friendly (offering anonymous tracking) and compliant with GDPR and CCPA regulations.

It does not complicate analytics with easy setup and ready-made templates for extracting real-time and actionable insights from your data.

Usermaven Features

  • No code event auto-capture: It removes the dependence on developers to track key events users perform on your app or website.
  • Marketing channel tracking and attribution: Usermaven lets you keep an eye on all your marketing and advertising channels to drive conversions and find growth opportunities.
  • User journey tracking: You can track user behavior on your app or website and find where they drop off across different sessions and domains.
  • No cookies or consent banners: Usermaven does not use tracking cookies to collect Personally Identifiable Information (PII). Also, you won’t need to display annoying cookie consent banners on your website.
  • White-label pixel tracking: You can get a full picture with accurate data from Usermaven with its white-label tracking pixels, which is not possible with other tools like Google as they get blocked by ad-blockers due to privacy concerns.

    Sharing and collaboration: You can update your team and clients with dashboard sharing and regular automatic analytics reports via email.

Overall, Usermaven is a great tool for businesses seeking actionable insight from their website and product data. It is packed with notable features that help your business grow, including funnel analysis, marketing attribution, engagement metrics, feature adoption, segmentation, cohort analysis, and more.


Amplitude is a comprehensive product analytics tool that ties marketing analytics with product outcomes. It drives growth with advanced analytics capabilities and insights into user behavior and optimization of digital products.


  • Real-time dashboard: You can create custom dashboards for real-time data insights.
  • User-behavior tracking: It lets you analyze user behavior across websites or apps to identify the most common fe
    atures and content users engage with.
  • User-segmentation: You can group users based on shared characteristics to analyze their behavior regarding your marketing initiatives and optimize accordingly.
  • A/B testing: You can perform A/B tests on your website or app to determine the impact of varied messaging on different users and implement the most effective one.
  • Data Integration: Amplitude can integrate with data sources such as CRM tools, email, and social media marketing platforms to collect and combine data across marketing channels.

Overall, Amplitude is a powerful tool for product analytics that helps companies reach their businesses objectives by gaining insights into user behavior and optimizing their digital products.


Plausible is a web analytics tool that helps website owners to track and analyze their website performance. It is an easy, simple, and privacy-oriented platform that provides reliable website traffic, engagement, and conversion data. It offers data visualizations that allow quick analysis.


  • Real-time website analytics: With Plausible, you can track website performance in real-time with analytics on website visitors, page views, bounce rate, and more.
  • Goal tracking: You can set up custom goals and track them over time for insights into performance, conversions, and other metrics.
  • Customizable dashboard: You can fully customize your dashboard with metrics that matter most to your business.
  • Funnel analysis: Plausible provides funnel analytics to help you keep track of user journeys across your website to determine conversion rates at each step and optimize where needed.
  • A/B testing: You can also test different versions of your website across your audience to see which performs better.

Overall, Plausible is a great option for website owners looking for a simple, privacy-focused web analytics tool that provides accurate and reliable data on their website’s performance.

In this day and age, it has become almost like a religious duty for companies to use digital data to drive growth and sales to their businesses. By leveraging the power of data, companies can understand their customers, tweak their products, beat their competitors, and launch high-conversion marketing campaigns.


What are the top 5 Cs of digital marketing?

Content refers to creating and sharing valuable, relevant, consistent content to attract and retain a clearly defined audience.

Creativity refers to thinking outside the box and creating unique and innovative digital marketing campaigns that make your business stand out.

Consistency points toward maintaining a regular and consistent digital marketing presence by posting content and engaging with customers to build trust.

Communication involves listening to customer feedback and responding promptly to their inquiries.

Client Customization means tailoring digital marketing efforts to meet individual customers’ specific needs and preferences.

What are the 6 types of analytics?

The six types of data analytics are mentioned below:

  1. Descriptive analysis focuses on summarizing s historical data to understand what happened in the past.
  2. Exploratory analysis explores data to identify patterns, relationships, and anomalies. It is often used to uncover hidden insights that were previously unknown.
  3. Inferential analysis uses statistical techniques on sample data to make inferences about a larger population.
  4. Predictive analysis uses statistical models and machine learning algorithms to make predictions about future events on the basis of historical data.
  5. Causal analysis helps determine the cause-and-effect relationship between variables to determine the factors that impact a particular outcome most.
  6. Prescriptive analysis provides recommendations on what actions can be taken to optimize future outcomes.

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