Digital Analytics for Dummies

Digital Analytics for Dummies

What is Digital Analytics?

The term “digital analytics” refers to the use of data analysis techniques to gain insights into consumers’ online behaviour. These insights help businesses make decisions about their marketing strategies and products.

The goal of digital analytics is to inform product and marketing strategies by collecting and analyzing product data from multiple digital sources. The likes of Amazon and Netflix have famously used digital analytics to develop new features, but companies of all sizes can use digital analytics to minimize churn, encourage experimentation, and increase customer value.

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Important Podcasts

Power of Analytics in a Digital Workplace

How Digital & Analytics are Impacting Consumer Goods & Retailer

Digital Marketer and Analytics Professional Resume Best Practices

Source: Simplilearn

Key Takeaways

  • The goal of digital analytics is to gather, analyze, and act upon data from all of your digital sources.
  • In addition to minimizing churn, digital analytics can be used to increase customer value and encourage experimentation.
  • The power of customer data can be leveraged by any business with the help of a digital analytics platform such as Amplitude.
  • Business owners have a short window of opportunity to adopt an analytics-first approach before they fall behind their competitors.

Where is Digital Analytics Used?

Have you ever wondered how Netflix or Amazon recommend content or products? To make the best recommendations, their personalization engines use customer data and digital analytics.

It’s not just tech giants that can leverage customer data in this way in the age of Big Data. The majority of companies now have a gold mine of customer data just waiting to be mined. Every day, customers log their time with digital products, giving marketing and product managers direct insights into what works, what doesn’t, and what might work in the future.

In a recent survey conducted by Micro Strategy, 94% of businesses identified analytics as crucial to growth and digital transformation. Yet only 30% of businesses have a clear data strategy. The businesses that engage fully and meaningfully with their data streams have an advantage over their opponents who continue to craft analogue strategies.

Why do we need digital analytics?

Businesses have been using traditional methods to analyze consumer behaviour for years. However, these methods are not always effective at providing accurate results. They often lead to inaccurate conclusions. That’s where digital analytics comes in. By combining advanced analytical tools with big data, companies can get a much clearer picture of what consumers want and how best to reach them.

How does digital analytics work?

There are two ways that digital analytics works. First, it helps businesses understand the customer journey. When customers interact with a business, they go through different steps before making a purchase. Digital analytics helps businesses identify each step along the way. Second, it provides real-time feedback. Businesses can use this information to improve their product or service offerings.

Types of digital analytics

There are three types of digital analytics: behavioural, predictive, and prescriptive. Behavioural analytics focuses on understanding the actions taken by users. Predictive analytics uses historical data to predict future events. Prescriptive analytics gives recommendations based on past behaviours.

Source: SAP

Benefits of digital analytics

Digital analytics can provide many benefits to businesses. Here are some examples:

  1. Better customer experience – Customers expect businesses to know everything about them. If a company doesn’t know who its customers are, then it cannot effectively market to them. Digital analytics helps businesses find out exactly who their customers are and what they’re looking for.
  2. Improved conversion rates – Digital analytics helps businesses determine whether their current marketing efforts are working. If they aren’t, then they can adjust their strategy accordingly.
  3. More satisfied customers – A happy customer is likely to become a repeat buyer. Digital analytics helps businesses learn more about their customers and keep them coming back.
  4. Lower costs – Digital analytics helps businesses save money by reducing wasted advertising dollars.

The Difference Between Digital Analytics and Digital Marketing:

Analytics refers to the process of collecting data on how people use websites and apps. It helps companies understand how visitors interact with their sites and improve their products. Marketing involves creating content that will attract new customers.

And what should you look out for when choosing between them?

There are two main differences between these terms. First, analytics focuses on measuring website activity, whereas marketing focuses on attracting new customers. Second, analytics measures the success of an individual campaign, while marketing looks at the entire company as a whole.

Note: Digital analytics refers to the process of collecting data about how people use websites and mobile apps. It includes things like tracking clicks, visits, and conversions. This helps companies understand what works and what doesn’t work when it comes to online advertising campaigns.

Why Should You Care About Digital Analytics?

If you’re not using digital analytics, you’re missing out on an opportunity to improve your website or app. By understanding what visitors do once they arrive at your site, you can make changes to optimize user experiences.

Which One Should I Choose?

You should use both digital analytics and digital marketing because each has its strengths and weaknesses. For example, digital analytics helps you understand how people interact with your site or app, while digital marketing focuses more on driving traffic to your site or app.

And what’s the difference between them anyway?

There are two main differences between digital analytics and digital marketing. First, digital analytics measures data related to website visitors, whereas digital marketing focuses on driving traffic to your website. Second, digital analytics provides insight into visitor behaviour, while digital marketing focuses on understanding consumer needs and wants.

Source: Simplilearn

Digital Analytics Tools for Small Businesses

There are many different tools available to help small businesses track their digital analytics. Find out what works best for you!

The world of digital marketing has changed dramatically over the past few years. It’s no longer enough to just post on social media and hope that people will see your content. Nowadays, you need to use analytics tools to track how well your posts perform in real-time.

Google Analytics

Google Analytics is one of the most popular tools used by marketers today. It provides detailed insights into your website visitors, allowing you to understand where your traffic comes from and how much money you spend per visitor. However, it does not provide as much detail as other tools such as Facebook Insights.


Another option is Mixpanel. This tool allows you to see data from multiple sources at once, giving you more insight than just Google Analytics. You can also use Mixpanel to send emails to your customers based on their behaviour.


If you’re looking for an easy-to-use analytics tool, then KISSmetrics might be right up your alley. It has a simple interface and offers a lot of features, such as email automation and A/B testing. However, it does not offer any advanced reporting options. On the other hand, Mixpanel is a bit more complex, offering a lot of advanced features, such as segmentation and custom reports.


CrazyEgg is a free service that allows users to see how visitors interact with their website. This includes where people click, scroll, and hover. It also provides heat maps that show exactly where people clicked on a particular webpage. CrazyEgg is very similar to Google Analytics, so it’s worth checking out before investing in a paid solution.


If you’re looking for something more robust than CrazyEgg, then HotJar might be the right fit for you. HotJar offers a variety of features, including conversion tracking, social media integration, and mobile app reporting. You can even use HotJar to measure the performance of your email campaigns.

Other digital analytics tools

Among the other digital analytics tools available are:

Note: Visit a review site like G2 to learn more about each of these digital analytics tools.

How to Implement a New Digital Analytics Strategy?

To fully leverage your valuable digital data, you must take the below-mentioned several critical steps:

  1. Find out what your current limitations are
  2. Make a list of your goals.
  3. Pick the Right Solution
Source: TEDx Talks

Digital Analytics FAQs

What are examples of digital analytics?

Examples of Digital Analytics Tools

  1. Integrate data from multiple channels and platforms into one product.
  2. Analyze results in real-time while conducting A/B tests and experiments.
  3. Build recommendations by making and testing predictions.
  4. Analyze customer behaviour at micro-levels throughout the user journey.

What does a digital analyst do?

The role of a digital analyst is to aggregate all the digital assets of a company. Reports are prepared, analyses are conducted, dashboards are explored, and website visitors are evaluated daily. For their data analytics work, they use CRM software and intelligence tools.

What are the 4 main types of data analytics?

In modern analytics, there are four main categories: descriptive, diagnostic, predictive, and prescriptive.

What are the elements of digital analytics?

The Elements of Digital Analytics

  1. Developing a content marketing strategy. Your content marketing strategy encompasses all the content you create and curate.
  2. Email Campaigns. When done well, email marketing still offers excellent conversion rates.
  3. Video Marketing.
  4. Paid Advertising.

What are the 5 basic digital skills?

  1. Communicating.
  2. Handling information.
  3. Transacting.
  4. Problem-solving.
  5. Being safe and compliant online.

What tools are used for digital analytics?

Top 5 Digital Analytics Tools for Marketing

  1. Google Analytics.
  2. Woopra.
  3. Crazy Egg.
  4. KissMetrics.
  5. Clicky.

Does digital analytics require coding?

It is also not necessary for data analysts to possess advanced coding skills. Instead, they should have experience with analytics, data visualization, and data management software. Data analysts must have excellent mathematics skills, as with most data careers.

Is digital analytics hard?

For beginners, data analytics is generally considered difficult for the following reasons: Mathematical skills. As a STEM field, data analytics is closely linked to mathematics, so you need good math skills to succeed.

How do I become a digital analytics?

A bachelor’s degree in computer science, marketing, databases, or a related field is the starting point for a career as a digital analyst. A master’s degree in statistics, economics, or data analysis may be preferred by some employers. It is also possible to earn your doctorate to become more competitive.

What are the 7 analytical methods?

The 7 Most Useful Data Analysis Methods and Techniques

  1. Regression analysis.
  2. Monte Carlo simulation.
  3. Factor analysis.
  4. Cohort analysis.
  5. Cluster analysis.
  6. Time series analysis.
  7. Sentiment analysis.

What are the 7 stages of data analysis?

  1. Define the business objective.
  2. Source and collect data.
  3. Process and clean the data.
  4. Perform exploratory data analysis (EDA).
  5. Select, build, and test models.
  6. Deploy models.
  7. Monitor and validate against stated objectives.

What is a digital analytics framework?

Many things can be accomplished with Digital Analytics. This process, however, should be viewed as a way to familiarize business users with the data available to them and to create efficiency around how that data is collected, analyzed, and provided to them.

How do we approach digital analytics?


Discover >

To achieve your business goals, we take the time to understand your specific measurement requirements. If you want your business to succeed, let us know what that looks like.


Define >

Your measurement requirements and key performance indicators are documented

Implement >

Defining your tracking code requirements and developing an implementation plan

Validate >

During data collection and platform configuration, we ensure the integrity and quality of your data.


Analyze >

To generate meaningful insights from your data, we ask hard questions.

Communicate >

Using data visualization and reporting, we tell stories about your data.

Test and Target >

To drive continuous improvement, we develop and implement test plans. There is never a stop to our testing.

Optimize >

By auditing your campaigns and analyzing your traffic sources (PPC, social, display, remarketing, organic search), we can maximize your ROI from paid and organic channels.

Source: Adam Erhart


A unique crossroads exists in the world of digital analytics for businesses. There is no doubt that data-driven insights have numerous benefits. Despite this, many companies have yet to adopt an analytics-centric approach to their existing infrastructure.

As executive teams argue themselves to a standstill on how and when to adapt to the new norm, their processes become unusable. Nevertheless, more agile competitors are passing them by, guided largely by data-driven strategies.

It won’t take long for the gap between businesses that use digital analytics and those that don’t to vanish completely. Business models that rely on analytics will either be adapted by holdovers or replaced by businesses that already use analytics.

It is always better to be the one everyone is catching up to than to be the one who is catching up. You can get a head start today by investing in the right digital analytics platform.

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