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What’s Your Analytics Data Worth?

March 15, 2016
Aaron Polmeer

By Jacob Baadsgaard


It can often be hard to nail down the exact worth of analytics data.

For most companies, data doesn’t have any inherent worth. No one comes to your site and says, “Hey, I see you’ve got a nice web analytics setup. Can I pay you for your data?”

It also takes work to get value out of your analytics data, which is why so many companies don’t set up analytics or don’t use their analytics setup.

However, the data most companies are ignoring has value—a lot of value.

Analytics is valuable in two ways: 1) it shows you where you are wasting money and 2) it reveals new opportunities for growth.

Let’s look at a couple of case studies that demonstrate the value of analytics data in each of these areas:

Are You Wasting Your Marketing Budget?

The goal of marketing is to produce profitable sales. That’s it, end of story.

It doesn’t matter whether it’s a branding play or a high-intent, low-volume PPC campaign, the goal of marketing is to produce more revenue and profit for a business.

In other words, if a campaign isn’t producing profitable sales, it’s not a successful campaign.

The problem is, according to HubSpot, only about half of companies track return-on-investment (ROI) for their online marketing. That means half of online advertisers have no idea whether or not their marketing is even working!

Simply tracking ROI isn’t enough, though. You can know your overall marketing efforts are profitable and still waste a ton of money on individual campaigns.

Case Study

For example, last year I audited the AdWords account of a potential client. They were in the half of marketers with analytics data, however, they weren’t using it to guide their marketing decisions.

After managing their advertising in house for several years, they were generating leads at a decent clip and made a lot of money on each sale. However, their cost-per-conversion was so high that they weren’t actually making any money off of their campaigns.

In the hopes of improving things, they had recently increased their budget by 30% only to find that generating more unprofitable traffic doesn’t make you more profitable.

It was at this point that I started looking at their account. They had the budget and profit margins to succeed at pay-per-click, but something just wasn’t working.

Here’s what their 90-day history looked like:

As you can see, over the past 3 months they had spent a lot of money to get about 1 conversion per 500 impressions. At 8 million impressions, though, that was a lot of leads.

But what about sales?

Unfortunately, only 1 out of every 100 leads became a paying customer, which meant their cost-per-sale was about $2,000.

Not a great situation.

Clearly, a $20.29 cost-per-lead wasn’t good enough, so I took a closer look at where their money was actually going.

After digging into their analytics data, it became clear that they were spending $49,000 a month on clicks that had never produced a single sale.

In other words, they were spending 42% of their budget on the wrong audience.

Ignoring Your Analytics Data is Expensive

By failing to use their analytics data, this client was …read more

Source:: Kiss Metrics Blog