There are plenty of tools, including Google Analytics, which can provide hundreds of digital marketing metrics you can use to analyse and judge your marketing results.
Your aim, as a marketer, is not just to have fancy and attractive figures on your dashboard. It is crucial to understand that there are metrics that are important than others.
You need data you can act on and use to streamline your marketing strategies.
With this in mind, we've made things easier for you and listed five critical digital marketing metrics that can help you understand the performance of your campaigns.
Read on to find out the essential metrics you need to be using in boosting your ROI.
1. Conversion Rates
Are your leads converting into sales? If not, what can you do to fix that?
Conversion rates are one of the fundamental digital marketing metrics you should never overlook. This metric helps you to understand the number of visitors that took an action on your site.
Ideally, depending on your business type, the conversion rates should align with your marketing objectives. For example, if you run an e-commerce site, you want to look at the number of purchases you get (cart conversions).
Tools like Google Analytics (GA) are great to help you set up goals and track them conveniently. For example, you can have five goals and each has a conversion rate of 20%. GA will show an aggregate figure of 100% conversion.
For adept marketers, this figure is not reflective of the actual rate. Instead, you need to view individual goals to determine their performance. The ideal conversion rate differs widely depending on individual actions, specific goals, and business type.
Your overall site traffic is usually your benchmark when assessing your performance.
2. New Leads
If you have marketing goals, try to compare the number of new leads by day, week or month. For any business, leads are usually the obvious goals. Unfortunately, not all business types have the same leads.
That's important to keep in mind when customising your goals for lead generation.
The trick with leads is to track them daily. This will allow you to notice a downward trend early enough and implement the necessary fix.
3. Website Traffic
This is basic, and I know you understand it. Unfortunately, there is no trick here: No traffic, no leads. It's as simple as that.
Track your month to month traffic to ensure that your marketing strategies are working. If you are blogging, building links, guest posting or working with influencers, the results should be reflective of your efforts.
With Google Analytics, you can view your traffic for a given set period or choose a date range that you want.
Review your traffic data, such bounce rate, time on site, exit rate, and interactions, to learn more about keywords and referrals.
Depending on your market, a bounce rate in the range of 26% to 40% is okay while 41 to 55 percent is average. Anything above 55 percent means there is something wrong.
Your average time on site should be above one minute. If the dwell time is over two minutes, good for you. Anything below 30 seconds is a bad signal that needs fixing.
In social media, a crucial metric to look at is engagement. Bear in mind that likes, shares, and comments are not that "important." But clicks are, as they support your funnels.
The reach of your posts determines the size of your audience. While it is beneficial to have a wider range, knowing that your audience is actively engaging with your brand is even more important.
High engagement can improve your reach since your audience can share or like your posts. Tools, such as BuzzSumo, can help you analyse your content performance.
If you are using your website for revenue or to get new customers, return on investment (ROI) an important metric to measure. It helps to determine whether your marketing efforts are successful and are delivering the results you want.
Try to determine the amount you are spending just to get one customer. Important factors to consider when measuring your ROI include pricing, promotion, product, location, distribution, and sales.
You want to consider your total revenue, gross profit, and net profit to determine your ROI.
For example, let's say you earn £50,000 for a marketing campaign of £10,000. To get your ROI, simply subtract your cost from the revenue (£50,000 - £10,000= £40,000), then divide the figure by your marketing cost to get £4. This means you earn £4 for every £1 you spent on marketing.
If your earning figure is lower than the cost or below your expectations, your campaigns are not working optimally and need reviewing.
Digital Marketing Metrics - The bottom line
Knowing if your marketing strategies and campaigns are working or not is important. Your site data provides vital insights that you can use to gauge the performance of each campaign.
Moreover, keep in mind that the statistics do not speak for themselves. You need to take ample time to interpret them to understand your marketing outlook.
When you identify the positive digital marketing metrics, try to integrate the top performing programs to create a robust digital campaign that maximises your leads, sales, and profits.
With these metrics, you're ready to substantiate your efforts and maximise your campaigns ROI.
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