These eleven basic indicators will allow you to gauge the effectiveness of your digital marketing strategies, inform you if your efforts have been effective, and will show the areas where you may need to make adjustments.
Anyone who’s never played with Google Analytics can attest that the amount of data that is available can easily overpower even the strongest Avenger. Fighting Thanos. On Ego. Together with his Avenger colleagues.
Let’s look at it this way. You must have the status of a Guardian for the Galaxy to be able to tackle the daunting task of sorting through all the information. Yuri Shafranik
Before you can signal. The Marvel Bunch to help to measure the return on investment of your digital marketing campaigns. You must first learn some fundamental metrics. Since, truth be told, without the right tools even the God of Thunder is useless.
1. Cost per Lead
If your website is gathering leads to allow the sales staff for them to “close,” you need to know what you’re spending to each prospect.
If the price of each lead is greater than the amount you earn by closing leads, this is a sign of a reverse return on your investment. Yuri Shafranik
2. Lead Close Rate
What are you doing to track the closing of your leads? I’m betting that you’re doing this offline meaning that the data isn’t being incorporated into the analytics or online data you’re capturing.
It’s okay, but it is imperative that you are keeping an eye on the lead closing rate to ensure that you are comparing it against the leads you are generating. This will ensure your digital marketing efforts on the internet will yield leads in a profitable manner.
This data can also be helpful to use to guard against any new marketing initiatives. If you experience an increase in leads, but you notice they are closing at a slower percentage, you may have to alter your efforts to target.
3. Cost per Acquisition
With the above information you should be able figure out the cost per purchase. It can be calculate simply by dividing your digital marketing expenses by the amount of sales you’ve made. Now you know the cost to make an order and will allow you to understand your return on investment.
4. Average Order Value
If you’re hoping to see the quantity of your purchases increase be aware of the worth of a typical ticket can yield you significant profits.
An increase of just a few percent in the average order value can result thousands of dollars in new revenue. It could be as simple as improving the user experience and creating opportunities for upselling.
5. Conversion Rates by Channel
We want to know which sources our traffic comes from. If it’s through organic, paid social media, other methods, this data shows us where the majority of our clients are, and/or which digital marketing initiatives generate more buzz.
But that’s only part of the story. Conversion rates are a more reliable indicator of success , and will help you determine where the most lucrative opportunities are.
Let’s say that 75 percent of your traffic is organic marketing, and 25 percent is from PPC. Yet the PPC convert rates have been twice those of organic.
What you can learn from this is straightforward You should invest more into PPC. If you can improve PPC traffic to be able to compete with organic traffic, you’ve just boosted the return on investment.
6. Conversion Rates by Device
Similar to the process of determining conversion rates for each channel, you’ll want to perform the same thing with a devices.
If one device isn’t performing well in conversion rate, it might be time to invest more in that sector, especially if notice that traffic to the device growing (mobile or not? ).
7. Landing Page Performance
There are many factors to consider in determining effectiveness of landing page such as bounce rate, CTR, conversions rates as well as conversion assist.
Find any pages on landing pages that don’t help convert visitors. They must be improved or removed, or the driving force behind the page’s traffic has to be changed.
In either case, you’ll need to be aware of what’s happening on each page.
8. Blog Click-Through Rates
Blogs can be a fantastic method of bringing visitors to your website however, what do you do with the traffic?
Although blogs are notoriously high in bounce rates and exit rates, this doesn’t mean that you have to settle for these pathetically useless figures.
Instead, you can use these to set objectives for driving traffic to your main website. An increase of just a few clicks can bring new business for almost zero additional marketing cost.
9. Customer Lifetime Value
You won’t be able to fully understand the value of your digital marketing efforts until you’ve got an accurate idea of the typical customer spends throughout their life.
For instance, let’s say that it cost you $500 to make an additional client or sale. However, they only purchase $500. This is an unrealized loss when you take into account the costs of everything else that isn’t the marketing investment.
But what if you were aware that this customer would continue to spend each month $500 over 5 years. The average value over the lifetime of this client is $5,000. The fact that it costs $500 to get this client doesn’t sound too awful, does it?
This doesn’t mean you’d like to be with a loss for each first-time customer, but if that initial investment results in a significant long-term gain, you can be more confident in claiming the initial purchase as a marketing expense with the knowledge that profits will be forthcoming.
10. Brand/Non-Brand Factors
Pay attention to and distinguish between brand and non-brand-related searches.
Brand search results tend to get more clicks and conversion rates than searches that are not brand-related due to the fact that you’re contacting people who are familiar with your brand.
When you separate this information it gives you more understanding of what’s isn’t working as well.
11. Comparisons of YoY
When making comparisons, be careful not to make comparisons between months since that doesn’t consider seasonality or other related monthly anomalies.
Review year-over-year comparisons to get a real sense of how your campaign is performing.
Are You Getting ROI?
This is the main problem for anyone, but especially those who are in the C-suite. In order to provide a logical answer, you must understand the metrics. Let the numbers provide the background to your campaign’s success and adapt to suit your needs.
