7 Ways Data Analytics Is Boosting the ROI Of Digital Marketing

Digital marketers are facing more competition than ever, so data analytics is key to driving their ROIs.

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Shutterstock Licensed Photo - Ayenk Rocnap | 1909214680

Digital marketers work online and leverage online tools to drive sales. They make up an aspect of marketing focused on using the internet and cloud-based technology to promote brands. Marketers all share the same goal: reach the target audience and make more profit. But driving sales through the maximization of profit and minimization of cost is impossible without data analytics.

Data analytics is the process of drawing inferences from datasets to understand the information they contain. It helps marketers with insight, which is the capacity to gain a deep understanding of their target audience. Whether marketers intend to reach new customers or persuade the existing ones, here are ways analytics is boosting returns on investment (ROI):

1. Increased Customer Growth

The two primary objectives of any digital marketing in Scotland or other countries are acquiring new clients and retaining existing customers. Through data analytics, digital marketers find it so easy to acquire new customers through trends and retain the existing ones by assessing their behaviors. That way, they can widen their customer base, improve reach, and effectively engage buyers with more marketing products. 

They use the patterns they’ve learned to trigger brand loyalty for customer growth and thereby boost returns on marketing investment. 

2. Improved Marketing Campaigns 

Campaigns flag off digital marketing. Creating a strategy that promotes your products and services is the first attempt at reaching your target audience. However, most marketing campaigns are not targeted because they fail to understand customers’ behaviors by leveraging data analytics. Marketers deploying analytics make a comprehensive analysis of customer trends to achieve improved campaigns. Focused and targeted campaigns boost sales by engaging optimally with the audience. When buyers connect the right way, make purchase decisions, there are positive returns on investment.

3. Personalized Services

Personalization is among the prime drivers of digital marketing, thanks to data analytics. Gathered data enables business owners to understand the needs of buyers. This includes the understanding of the message they’d love to read, the medium they’re comfortable with, and the time they’re mostly online. 

Leveraging these metrics, digital marketers can draft personalized campaigns that meet customers’ needs and eliminate budget waste. At reduced costs and efforts, they can make more sales and boost returns on investment.

4. Reduced Risks

Aside from the assessment function of analytics, there’s also the security benefit. By optimizing your marketing campaigns, analytics helps you identify risks and quickly patch them. It reduces customer churn rate, often due to repetitive tasks, by providing meaningful and actionable insight

When your campaign is faulty, it’s usually due to a lack of data. A non-functional marketing operation, for instance, may cause potential buyers to explore other options. But if your strategy is data-driven, not only do you engage customers but also boost whatever amount you invested in running that program.

5. Innovative Products

So, when you start creating a product, aside from features, another thing that you must consider is to create something that customers want. Consumers today are not solely after the satisfaction of wants; they want products that meet their demands at the right place and time.

Therefore, any digital marketing process without considering the correct goods will miss the target. Marketers can no longer base campaigns on instinctive and intuitional content. Commodities have to be innovative either by labeling, filtering, or description. Data analytics fuses the right products with customers’ needs for maximum engagement and favorable returns.

6. Enhanced Supply Management

If production is not complete until goods get to the consumers, what about marketing? Of course, the ultimate goal of any marketing strategy is to persuade consumers to make sales and start using the products. If the good is yet to get to the consumer, marketing is incomplete. 

In digital marketing, there are many bottlenecks regarding the delivery of goods that data analytics has resolved. With greater precision and insight, digital marketers can deliver orders within a few days. Buyers can also track their orders. This process leads to improved satisfaction, increased customer growth, and positive returns on investment.

7. Effective Decision Making 

Savvy digital marketers appreciate the role of data reporting in the success of marketing strategies. More importantly, they never take lightly the need to make informed decisions from the reports to avoid analysis paralysis. Fortunately, today, there are significant data analytics tools with incredible visualization designs for the ease and convenience of decision-making. Improved decisions make the buyer’s journey more efficient, leading to more sales, profits, and mouthwatering returns.


Digital marketing is a lot of investment. It requires time, effort, and money. However, smart marketers know the solution to boosting returns is the deployment of data analytics. 

Analytics helps business owners to understand customers’ trends and behaviors better. This understanding is then used towards persuading buyers to engage with products, buy the goods, and start using them.

Ryan Kh is an experienced blogger, digital content & social marketer. Founder of Catalyst For Business and contributor to search giants like Yahoo Finance, MSN. He is passionate about covering topics like big data, business intelligence, startups & entrepreneurship. Email: ryankh14@icloud.com