8 Digital Marketing Metrics That Clears Out the Blur for You
Thanks to modern digital marketing tools businesses have a lot of information at their fingertips to streamline their marketing efforts and increase sales. That sounds pretty good, but finding out where to get started in the jungle of information available can be overwhelming. However, for your convenience here is a list of eight digital marketing metrics to focus on in order to evaluate and focus your efforts. We’ll even include a successful example for a real-life peek into how it works.
8 Effective Digital Marketing Metrics
1. Return on Investment (ROI)
As the old saying goes, “you’ve got to spend money to make money.” Marketing costs money, but you should pay attention to how much money you are spending vs. how much you are making. Some simple math comes into play, and you need a few figures. The cost per lead is the first number. The second number is the amount or percentage of leads that turn into sales. The last number is the average customer value. For example, if you pay $10/lead and 50% of your leads turn into sales, then it costs you an average of $20/customer. If the average customer makes a one time purchase of $50, your ROI is $30. That’s a positive ROI and a good sign. If your average customer’s purchase is less than $20, in this scenario, you have a negative ROI and are spending more than you are making. This information is valuable because it allows you to re-think your marketing strategy and make changes in order to make your business profitable.
2. Lead Close Rate
Traffic to your website is great. If no one sees it, then no one will buy. However, receiving a lot of visits to your website is useless if no one is turning into a customer. The close lead rate is a crucial metric in the grand scheme of things because it’s an indication that something in your marketing campaign is lacking or succeeding. If your close lead rate is high, you are doing something right! If it’s low, you know you should start investigating the reason why. Globally, across all industries, the close lead rate hovers around 3% but if you’d like to find out the average website lead close rate for your industry check out figures calculated based on industry and country.
3. Customer Retention Rate
Last month’s blowout sale may have resulted in a lot of purchases, but if those customers use and lose your product or business, you might not be coming out ahead. Like any metric, this is just one way to narrow down on a problem area and isn’t telling of what the end issue is. It could mean that customers are dissatisfied with the end product. Or it could mean that your pricing is too high to retain the customers you’ve been targeting. If your customer retention rate is less than satisfactory, it’s a great starting point in pinpointing problem areas in your business or marketing plan.
4. Landing Page Performance and Effectiveness
Your landing page has the potential to provide a lot of information about visitor habits. Clickable links are a key way to find out what is working and what isn’t. You’ll notice the eye-catching website offers a lot of clickable links including videos, photo galleries, feature lists, quotes, contact links and similar models. The variety on this landing page will provide a wealth of information to analyze. Along with the information it is ideal to add call to actions on the page. Doing that can help in increasing the page/product performance. In short, it is ideal to make the landing page worth the watch and put simple, visible call to action to increase CTR.
5. Click Through Rate
A lot of people might see your blog or advertisement in passing, but the click-through rate measures how many people who see it click on it and are exposed to your associated landing page. Apparently, a high click-through rate is a good thing and means that your method for driving visitors to your website is successful. A low click-through rate means you may have to re-think how successful your advertisement is doing.
6. Long-Term Comparisons
Every business has highs and lows based on the season and market changes. The best way to get an idea of how you are doing is to look at the big picture. How does this year compare to last year? If you weren’t doing much digital marketing last year but started this year and have seen an increase in profit, it’s a good sign that your efforts are paying off. The more years of data you have to compare the more accurate of a picture you can get of the overall results of your marketing effort. Suppose if you run a business that provides invoice finance, then you must compare on how many businesses opted for your service last year to what is the number for this year and how many of them are recurring?
7. Customer Lifetime Value
Your type of business can influence the customer lifetime value significantly, so it is important once again to look at the bigger picture when determining the cost-effectiveness of your marketing. If you have a product that is most likely a one-time purchase and won’t be repeated be sure that the cost of bringing in a customer isn’t higher than the money you put into securing them. However, spending more to bring in a customer is valuable if they are likely to continue buying your product.
8. Conversion Rates Based on Device
It’s valuable to find out how much of your website traffic comes from which devices, and what their conversion rates are. More people are shopping from mobile devices, and if you are finding this to be common for your business, you should consider ensuring mobile-friendly websites for smooth transitions.
While there are a lot of factors to consider when improving your digital marketing plan, these eight factors are a great start to knowing how to think about how well your efforts are paying off. It’s important to remember that these metrics should be viewed with a big-picture perspective in order to hone in your efforts for maximum effectiveness.