Digital transformation is the disruption that has made the adoption of digitally driven model inevitable for sustainability. The uncertainty it brings can be highly unconventional for businesses, both big and small. However, it can be converted into an opportunity to gain the competitive advantage in the long run.
Organizations looking for growth and success have to stay relevant and competitive in the eyes of their target audience. For this, they have to evolve and keep improving continually. However, Digital Transformation, which is primarily driven by data, can enable organizations to stay pertinent in today’s accelerated digital environment.
What is Digital Transformation?
Digital transformation is all about constantly improving by embracing data and technologies that add value by utilizing the data. Together they can be used to build practices that can make the organizations much more sustainable and agile. Subsequently, such a transformation can help enterprises to minimize the gap between the expectations of the digitally savvy customers and their offerings.
How is it dependent on data?
Evidently, one of the key aspects of Digital transformation is the reliability of transactional and intellectual data for making critical decisions. It’s only by analyzing the data from past performance, the key insights on customers and the market are revealed. Moreover, the insights are essential while making future predictions, and so the decisions are purely driven by data.
Why is data analytics important?
Such dependence on data puts analytics under primary focus. Data Analytics is a comprehensive process involving a series of well-defined steps. These steps include collating, examining, cleansing, converting, and modeling of data. The primary goal of data analytics is to discern useful information, suggest conclusions, and support decision-making. While there are different types of analytics, it’s the web analytics that has a major role in the process of digital transformation.
What is Web Analytics?
Web analytics is about analyzing various features and factors related to a website or a web application. It’s mainly used for qualitative research and findings, which enable organizations to use their site much more effectively. Website analytics can be used to monitor the site’s traffic, based on which steps can be taken to attract more visitors.
How does Web Analytics work?
It helps in identifying the products or services with the maximum and minimal demand that are being sold on the site. Using the information, retailers can take the appropriate initiatives to retain the popular products, while adding or replacing the non-performing ones with new products.
Moreover, similar steps can also be taken to maximize the dollar volume of each purchase by a customer. As all these efforts contribute towards the digital transformation of an organization, discussed below are some of the ways that web analytics can play a significant role in the process.
• Web Analytics provides an ideal platform for decision-making in a data-driven environment. It involves collecting and collating the relevant data from the website, which can answer the critical question of whether the company has been able to meet the desired goals.
• The insights from web analytics can help figure out the possible ways to achieve the KPIs. Some of the common KPIs could include new and returning visitors in a given period. Sources of traffic and grouping of channels from where they arrive such as a referral or organic search is another important KPI. Similarly, Page-Tracking (keeping a count on the number of sessions), Bounce Rate, and Goal Conversions are other important ‘Key Performance Indicators,’ which can be tracked, monitored and improved by the web analytics.
• A thorough analysis of your website can also help you identify some high-value content that is not able to generate the expected amount of traffic. The content, which could be a blog article or any resource document, can then be optimized (organically or paid) to get more views.
• The website’s content is the primary source through which visitors can be attracted. Hence, it is not only important to create high-quality content but it also equally essential to place it at the appropriate locations on the website. Web analytics can help track the competitors to identify the right kind of content that can keep the visitors engaged. Moreover, it can also help figure out the right locations for placing the high-value content, so that it can achieve maximum visibility and generate concentrated viewership.
• Web analytics can also be integrated with customer relationship management (CRM) analytics. This can be highly useful in e-commerce, where analysis can be used to determine the possibility of a customer revisiting the site and repurchase a product. This way, it can help answer the questions on the product-acceptance and consumer behavior.
• The analysis also helps in personalizing the site for customers who are the regular visitors. Be it the offer page, resource sections or the preferred pages; the customer would get to notice what they wish to see as soon as they log on to the site. Through this, the objective of promoting the products to customers who are most likely to buy them can be achieved. Thus, the ratio of revenue to marketing cost can be improved.
• By monitoring the unique information about each market-segment, such as the demographics, geographic location or tastes, web analytics can identify their preferred product lines, which can help maximize the volume of each purchase. By tracking the history of purchases made by the customers, the analytics can also help the retailers solve the inventory and stocking conundrums. The ability to accurately predict the future demand can help retailers to optimize their inventory, and help reduce the cost and burden of over-stocking.
• The heat-maps from web analytics can also track the drill-down behavior of customers as well as the click-through rates on the site. By this, the most preferred content segments of the site could be identified. On the other hand, the segments that are regularly overlooked can also be identified and improved.
Visitors can arrive at the site from various channels such as social platforms, emails, paid ads, referrals or organic searches from search engines result pages (SERPs). Sometimes, the visitor can log on to the site directly, leading to direct traffic. By identifying the most popular sources of the traffic, the companies can focus more on them, while also spending enough on other sources to improve them.
The ability to know the major sources of traffic gives more control to the promoters while developing a marketing campaign that focuses on website traffic. Similarly, having a clear idea of consumer behavior and product features, which is driven by data, can be critical to the growth and profitability of the company. Thus, these initiatives of web analytics form the core practices for digital transformation, which prove the significance of its role in the entire process.
Swapnil Bhagwat is a design and digital marketing leader with global working experience in the United States, United Kingdom & Europe. He is working as the Senior Manager of Design & Digital Media at Orchestrate Technologies, LLC. Swapnil has worked for more than a decade across a range of businesses for the global markets. He is digitally redesigning the customer experience for B2B and B2C enterprises and helping them to drive revenue growth. Swapnil is an MBA graduate and implementing marketing, digital, social, design, and web strategies for large enterprises.