How do you identify strengths and weaknesses in your digital strategy?

Clearly defining KPIs is fundamental to evaluating your digital strategy. For instance, a digital news platform may establish KPIs such as the number of daily active users, average time spent on the site, number of article shares, and newsletter sign-up rates. These KPIs help them measure user engagement and content reach. By setting these specific metrics, the news platform can systematically track their performance over time, providing a clear indication of which aspects of their digital strategy are working and where adjustments are needed.

Here are some unconventional metrics you might want to consider: 1) Customer lifetime value (CLV): It measures the total revenue a customer brings to your business over their lifetime. It's a more accurate measure of customer loyalty and profitability than one-time purchases. 2) Engagement rate: It measures how well your content resonates with your audience. It's calculated by dividing the number of interactions by the number of impressions. 3) Conversion rate: It measures the percentage of visitors to your website who take a desired action, such as making a purchase or signing up for a newsletter. You can also track micro-conversions, such as downloading a whitepaper or adding a product to a cart.

Gathering and analyzing data related to your KPIs provides insights into the effectiveness of various elements of your digital strategy. A local real estate agency, for example, uses web analytics tools to monitor traffic to their property listings and social media analytics to assess engagement with their posts and ads. They track metrics like click-through rates on listings, time spent on each page, and the number of inquiries or leads generated from social media. Analyzing this data helps them understand which property listings are most popular and which social media platforms are most effective in generating leads, guiding them in refining their content and advertising strategies.

Here are some other data sources you might want to consider: 1) Social media analytics: These platforms provide insights into your audience's demographics, interests, and behavior. 2) Email marketing analytics: These platforms track open rates, click-through rates, and unsubscribes. Customer relationship management (CRM) software: This software can track customer interactions, sales, and support tickets. 3) Surveys and polls: These can provide valuable insights into your customers' needs and wants.

I completely agree. When faced with this exercise, I often turn to a reliable SWOT analysis. It's important to note that sometimes it's not possible to address all weaknesses simultaneously. In such situations, this approach helps to identify potential opportunities, which in turn assists in prioritizing what needs to be addressed first for the greatest impact.

Once you've collected and analyzed your data, you can start to identify your strengths and weaknesses. Here are some things to look for: 1) Traffic sources: Where is your traffic coming from? Are you getting a lot of organic traffic, or are people finding you through paid ads or social media? 2) Bounce rate: A high bounce rate could indicate that your content isn't relevant or engaging. 3) Conversion rate: How many people are taking the desired action on your website? A low conversion rate could indicate that your website isn't user-friendly or that your offer isn't compelling. 4) Customer feedback: What are your customers saying about your business? Are they happy with your products or services? Do they find your website easy to use?

When evaluating your digital strategy, it’s important to pay attention to test hygiene - that is, that you are testing one element in isolation. Let’s say you are running a test to determine the most effective PPC copy; it’s a simple A:B test, and you’re trying to determine whether “Buy Now” or “Learn More” drives more engagement on site. However, during the test, you start to tweak landing pages and decide to trial a few variations. The problem you have now is that it’s suddenly much harder to determine whether the impact to metrics such as bounce rate, purchase volume, ABV, etc are due to your PPC copy changes or your landing page tweaks. By testing one element in isolation, you can definitively prove what impact it has made.

Once you know your strengths and weaknesses, you can start to prioritize and implement actions to improve your digital strategy. Here are some tips: 1) Double down on the things you're already doing well. What can you do to improve them even more? 2) Don't ignore your weaknesses, but don't get discouraged either. Start by addressing the most important ones. What small changes can you make to improve them? 3) Don't try to do everything at once. Set small, achievable goals that you can build on over time. 4) Don't just implement changes and hope for the best. Test your changes and measure the results. What's working? What's not?

It's important to keep up with evolving digital marketing trends and gather feedback from both customers and internal stakeholders. A boutique clothing store, for instance, stays informed about the latest trends in online retail, such as the use of AI for personalized shopping experiences or the integration of social commerce. Internally, they encourage feedback from their marketing and sales teams to gain different perspectives on the digital strategy's effectiveness. This holistic approach ensures they are not only guided by data but also by customer preferences and internal expertise, allowing them to adapt and innovate continuously in their digital strategy.