Online Marketing Analytics: The New Finance
It was said in the last years that online marketing businesses has the become similar to the financial markets due to the appearance of online marketing analytics. That is happening since businesses who operate in the online landscape can benefit from understanding the actual demand and respond to it in real time. This enables any online website business owner manager like you to learn what is going on with his/her business using a variety of online tools such analytics tools, CRMs, reporting tools, and make an informed decisions using the data those tools have to offer.
But this is only the first step in the revolutionizing arena of online marketing. The real art of online marketing analytics happens when you will be able to take this kind of data & get a grip on the economics that drive your business results. When I say that I mean there is a real opportunity that you will be able to get answers to critical questions in economics.
Here’s What Online Marketing Analytics Can Answer About Economic Questions
Online marketing analytics has got to a point where with combination with academic research methods it can now provide businesses like yourself answers the following questions:
What is the range of price points & purchases of your business?
The business pricing of a product or a service is something that relies at the heart of every business model. But with today’s online marketing analytics you can segment your traffic and see how your customers react to different prices, and how many purchases occur for every price point. This will enable you as an online business manager to find new price points that will make your business more profitable. Sounds bizarre, ha? Why on earth should you try and offer your product or service with different price points when you are trying to position your business to a certain audience? The economic answer is clear: because your potential clients are different in their payment capability & all of them need your product or service.
This can make your business reach out for more audiences you never believed have existed, just because you didn’t run test on the market. Nothing to loose here, as long as your business is ready for growth.
How Does The Demand Curve For Your Product or Service Looks Like?
This is one of the greatest questions, isn’t it? Research companies like Nielsen & Forrester are invested heavily in finding how demand curves look like. They hire proficient analysts, verify their results & put in a lot of effort to be credible.
Well, they all do a great job, but only you, the online business manager, can really know how YOUR business demand curve looks like. Do you know why? It’s because, as I already said, you can find new price points & their purchases. When you will connect the dots of each price & purchases you can find out how the demand curve REALLY looks like. Not by a general report one of the famous research companies publishes but your own.
Knowing how the demand curve looks like will tell you how to get more clients from price points you never competed for. In case it’s a higher price point, then maybe it’s aimed for less consumers, but those consumers want your business to be their premium provider. On the hand, on lower price points it maybe that consumers are looking for an agile solution to their need, and your website should be simple enough and provide them with their need.
What Are Your Current Consumer Tastes?
I think that this is the question that needs as rapid an answer as possible. Consumer tastes can effect demand intrinsically and a sudden drop or rise in this graph can be explained by looking at changes in those tastes. Yet, since those tastes aren’t expressed on daily basis, apart of seeing them impact on the sales, detecting them can be hard.
This is where online marketing analytics & funnel testing comes in handy and can tell you something deep about your consumers. Let me explain this with the following example. If for instance you have a online liquid soap store that sells liquid soaps in a 500ml bottle with three types of scents: Chamomile, Lavender & Rose you can still prepare your business for consumer tastes change. A possible solution for this can be that you can offer part of your traffic to buy spray soap. In case there will be a rise in the spray soap sales according to your online marketing analytics to a certain threshold for a few months you can gauge the percentage of traffic that will be offered with spray soap & avoid a massive drop in the sales of your online shop.
This, with combination to the answer of the previous questions can keep your business sound in a rapidly changing environment.
And Here’s a Real Case Study
A case study of working thoroughly with the financial side of online marketing analytics is shown here by Professor Jean-Pierre Dubé. In his fantastic lecture professor Dubé combines his knowledge in marketing with economics and shows how far a business can reach its consumers. His lecture also teaches how a business can improve without making mistakes, but by making online marketing tests as a boilerplate upon which its economic decisions can be made.
Everything I talked about it is mentioned in this lecture & even more. It’s not a short lecture (it will take about an hour of your time), but I assure you it’s not a boring. At the bottom line he helped the company he introduces in the case study, ZipRecruiter.com, to increase revenues by 30%-80% within several months and the methods he implemented there are being replicated to gain more revenue from new market segments the company tries to address.
Changing the mode of thinking of an online business from a business that just tries to sell to a learning business that relies on hard online marketing analytics can bring to its progress and make it survive on the turbulent environment such as the internet.
Start using these practices, and I am sure you will easily find the next 20% of growth using these method.
Are you ready to go?