8 Digital Marketing Metrics Your Business Can’t Live Without
All thanks to the digital marketing age – marketers don’t need to execute marketing strategies blindly anymore. You can measure the metrics and other analytical data in real-time on the go! Every digital marketing tool today comes with some sort of associated metric that can help you in measuring your success.
However, with the easy availability of tools and metrics comes a bigger responsibility. Responsibility to choose the metrics and success measuring tools properly. Marketers can simply end up wasting their time with the wrong choice of metrics. To aid you, we are here with just the right collection of metrics that play an influential role in measuring your growth and revenue generation on the whole.
Traffic Acquisition Metrics
These are the metrics that determine the ways which traffic can be acquired. These metrics are thus mainly measured during the traffic generation stage. These metrics play an important role while working on SEO and PPC campaigns.
1) Click through rate
Pay per click helps you attract the potential traffic in return of a certain amount, and thus the name – Pay Per Click. The best way to figure out the success of your PPC campaign is by tracking the number of clicks your ad received compared to the total number of impressions received. An impression is made every time your ad is viewed. But it is just not about viewing. Your PPC campaign is successful only when your targeted audiences land over the associated landing page. And this is when; click through rate comes into the picture. CTR measures how many people viewed your ad, but in addition, clicked on it.
It goes without saying, the higher the CTR, the better your quality scores are and the lower PPC costs would be. The more the clicks, the higher are your chances to earn pricing discounts from your search engine marketing platform.
2) Cost per Click
Cost per Click, CPC is the cost associated with every click on your PPC ad. CPC is variable and depends on a number of factors. It might vary depending on your keywords – how popular they are, the quality score you have which depends on CTR and the standard prices that your chosen search engine has.
3) New visitors versus returning visitors
This is very useful metric in order to determine the success of your campaign. This serves as a quality parameter and reveals if your ad was luring enough to attract multiple visits. This helps you track how many new visitors are coming to your website day after day, and how many out of them are returning ones. Consider a case when you have a high number of new visitors coming to your website as compared to the previous month. This simply reveals that the new content on your PPC ad is attractive enough to attract audiences, but the rest of the website isn’t performing well enough to lure customers in further in order to make a purchase, or whatever you are dealing with.
User behavior Metrics
So, your PPC ad is done with its part. It brought an appreciable number of users to your website. Now, what? How will you determine the behavior of people after they entered onto your website? Did they make a purchase? After how many seconds (or minutes), did they called it quits? And so on. This is what is revealed by
4) Number of page views
This tells a lot about how many people landed on the page and how many views you received on a particular day. For example, if you changed the PPC ad discount offering the next month and want to calculate how effective the discount was. The best way is to check the page views count that particular ad received. Page views, thus, serve as one of the parameters on which the success of your PPC ad can be determined.
5) Landing page conversion rate
Landing page conversion rate, as the name suggests, studies the effectiveness of your landing page. It reveals the number of customers that were converted into sales or leads from being just site visitors. More the conversion, more the customers and thus better prospects for your business ahead! Click here to find out how you can leverage technology to increase conversion rates by 700%!
6) Bounce rate and exit rate
Let’s face it. Not all visitors who visit your website can be converted into sales. Nor will all remain hooked to your website for a long period of time. There are cases when visitors leave the website as soon as they arrive. Bounce rate is thus a parameter to check how you can provide better experiences to your customers. Bounce rate can be defined as the percentage of visitors who left your website after going through a single page. A high bounce rate is therefore an indication that the landing page was not captivating enough to hold the users for an extended period of time, or convince them to browse further on your website. It thus gives you a chance to make your landing page more effective.
The exit rate, on the other hand, is specific to each page. Exit rate reveals information about the last page your users visited before calling it quits. For example, if your ‘how it works’ page has an exceptionally high exit rate as compared to other pages, it simply means that you’re not connecting well with your audiences.
After Acquisition Metrics
So you have conquered the customer, converted them from a mere visitor to sales, but what did it cost you? What was the exact cost involved in acquiring and retaining a customer? And now that you have acquired the customer, what effect will this have on your business? These are best studied through ‘After Acquisition Metrics’.
7) Cost per customer vs. revenue per customer
This is a simple formula that determines your marketing success. If revenue per visitor is more than the cost per visitor, you are on right track! The greater the output, and lesser the input – it simply means that all your marketing efforts are on track and yielded handsome results.
8) Lead to close ratio
This is another simple metric. You simply need to divide the total number of generated leads by the total number of sales that you did. This greatly defines your sales efficiency.
To sum up, it is wise to understand and take advantage of each of these metrics defined above in order to make your landing page effective. Marketing efforts are nothing without proper tools and metrics that could measure the success. The key here is to make the best use of the extracted data from various metrics and work in the right direction, making the well-informed decisions.
Which of these marketing metrics do you rely on most heavily to evaluate the success of a new marketing campaign or initiative?