What does Tracking mean in marketing terminology?


Tracking is an essential tool for understanding your digital marketing activities and your customer engagement. Tracking allows you to measure how successful your campaigns are with customers, how different marketing activities convert into customers, or sales, and measure the results of your overall digital marketing activities. It also allows you to better understand customers and their preferences.

Tracking requires certain tools and systems. The first step is to create an analytics strategy. This will define the type of data to track and the ways in which this data should be analysed. This should include the tracking of referral sources, customer demographics, customer actions, and customer segmentation. These can be used to identify the sources of traffic and potential customer trends.

Once the data is being collected, it needs to be analysed and interpreted. Using analytics tools like Google Analytics, create reports and graphs that can be used to look at trends and corresponding activities like click-through rates and customer paths. These can also be used to measure the success of campaigns and target customer groups.

Website visitor tracking is another important feature of tracking digital marketing activities. With the help of tracking software and plugins, you can track customer behaviour on websites and use this information to better understand how customers interact with you and your products or services. This can be done through heat maps, customer interactions with emails and digital content, user mouse movement, and more.

The data collected can then be used to determine what worked and what didn't by conducting A/B testing. This process compares two or more versions of an advertisement, website page, or email - to see which one is more successful. You can also use A/B testing to test assumptions to better understand customer online behaviour and the effectiveness of different campaigns.

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Tracking also allows businesses to understand how their customer values are perceived. By examining customer action, engagement, and referring sources, you can get a better understanding of the value and customer experience behind each customer interaction. This can be used to direct campaigns to better engage customers and increase conversions.

Tracking customer preferences also helps businesses to understand their customer better. By collecting and analysing customer data and behaviour, you can identify potential customer trends and create custom customer segments. These customer segments can be used to create targeted, personalised campaigns tailored to different customer segments, further increasing the effectiveness of your campaigns.

Once customer preferences and trends have been identified, the next step is looking at customer lifetime value (CLV). This is a measure of customer value estimated over their expected lifetime. It helps businesses to be more efficient in targeting customers, as customers with a higher lifetime value are more valuable in the long run.

Finally, tracking can help marketers measure the performance of their efforts. Key Performance Indicators (KPIs) can be used to measure the success of campaigns, customer engagement and conversions. This allows marketers to identify what works best for their digital marketing needs.