Without marketing metrics, several businesses would not be able to navigate successfully through this ad-cluttered world. It is necessary to find ways to cut through all the digital noise to get your product or service noticed by customers.
This is what can make or break a business because what is the point in spending resources on marketing if you do not have a marketing strategy to guarantee success? Most companies spend a large chunk on marketing budgets to increase revenue.
Instead of throwing all your money into the darkness and hoping for the best, here are the marketing metrics you should keep an eye out for to start tweaking in your favor.
Why Marketing Metrics Matter?
There are several marketing key performance indicators (KPIs) that you should be tracking. This is necessary so that you can have an in-depth understanding of where every dollar from your marketing budget is going.
Are you investing blindly into paid ads and not seeing any revenue increase at the end?
You should always have a healthy rate of return if you are spending marketing dollars. Marketing metrics are the best way to know if your money is being spent wisely or not. Otherwise, you could be wasting your budget each year.
- Qualified Leads
This is one of the first digital marketing metrics you should pay attention to. A qualified lead would be a potential client who matches your ideal customer profile. Even if they have not reached out to you yet to buy anything.
Qualified leads are significant in marketing campaigns because these are the people you can influence to pull the trigger and spend money on your business. You can generate many leads when you push an advertisement, but they will not all be qualified ones.
Qualified leads are the people who are more likely to respond to your marketing efforts and buy your product. This is why you should create personalized campaigns and spend more time finding the right people to pitch to instead of the ones who never convert to sales.
Visualize user behaviors to know how your customers are going to act and find ways to get their attention.
- Customer Acquisition Cost
Customer acquisition cost or CAC is how much money you spend convincing your customer to buy a product or service from you. This incorporates the cost it takes to reach the ideal customer and move them through your sales pipeline.
Think about your expenses on putting ads out for social media, television, and so on. Then compare this cost to how many customers you are receiving after spending on marketing. Are they successfully adding your products to their cart and checking out?
If you have an impressive CAC figure that is lower than your average sale revenue, you can use this to impress investors. They love stats like this and would gladly invest in your business by seeing how fast you are turning a profit.
- Bounce Rate
A bounce rate tells you how long people are spending on your site. If your customers are interested in your content, products, and services, they will stick around on your website much longer.
Then your bounce rate will be low. If people are not reading enough on your pages and are clicking out too soon, your bounce rate will skyrocket. This is important because if you have a high bounce rate, it means that people are not finding value in your products and services to stay long enough to spend money.
This is why you need a successful marketing strategy to engage people and hold their interest for a long time to convince them to buy. The best way to keep your bounce rate low is by tweaking your site’s design. Think about some of the best websites you have seen and why they kept you on there longer than a few minutes.
Did they provide enough information about their products and services that kept you reading for a long time? A simple tweak can improve bounce rates significantly. Try adding a picture with a link and some more interesting text. Then play around with your layout and see how it affects your traffic.
Ask yourself if you are going after the right customer. If you have put out a landing page and people are clicking on it, ensure that the page is answering their question and providing what they need. Otherwise, people will shut their browser quickly away from your site.
- Return on Investment (ROI)
The return on investment is one of the most key marketing metrics that all businesses need to track. If you are a business spending lots of money on your marketing budget and making the best products to sell, you want to know if all this effort is worth it.
By tracking your return on investment, you can see if your revenue is increasing or not making any traction at all. This way, you can check what marketing strategy is working and make critical decisions accordingly.
For instance, if your last campaign did not generate enough revenue, you can look back on what went wrong and reallocate your resources to do better next time.
However, you should be careful tracking ROI. Do not throw away a marketing strategy immediately, even if you notice low performance. You can always adjust campaigns a little to make them successful.
On the flip side, do not get too attached to a marketing strategy that has done well in the past. What worked before may not produce the same results again. Even though you do not need to ruthlessly abandon a strategy, you should alter your marketing plan to keep up with the latest trends.
- Organic Traffic
Organic traffic is when people come to your site directly by finding you online. This is because customers already know your brand without you always reaching out to them.
If you have a lot of organic traffic, it means that your trustworthiness and brand authority with consumers is increasing. The more organic traffic you have, the less you will need to invest in paid traffic.
Earn Maximum Revenue Today
Tracking marketing metrics is important because they help you decide what steps to take next. You always want to ensure consistent growth and return on investment before heavily investing all your money in marketing campaigns.
If you enjoyed reading these digital marketing strategy tips, check out some of our other posts for more information.