Digital marketing metrics are provided for you with most analytics software, but which metrics should you focus on? The short answer is that it depends. If you’re concerned with your number of leads, the metrics you’ll aim to improve may be different than if you’re concerned with mobile traffic. Tracking the appropriate metric will allow you to execute a successful campaign.
It seems like there’s a metric for everything and you may discover that only a handful are important to your overall strategy. Nevertheless, knowing which metric to reference when you find a strategy lacking results will surely help you turn things around quickly. It’s also important to keep in mind that the ratios may all seem off if you’re a new company. Here are 10 key metrics to keep in mind for your digital marketing strategy:
A qualified lead is someone who has proven they are interested and in need of your product or service. At this point, you want to prepare your sales team for a possible sale. This metric gives you a broad understanding of the overall effectiveness of your campaign. How many of your leads move on to become qualified leads? Where is the disconnect if the ratio is low?
Traffic by Channels
Where are your visitors coming from? Your digital marketing strategy most likely includes a variety of channels so it’s important that you know which ones are working and which ones aren’t. You may notice that the traffic from your email campaign is seriously lacking compared to the traffic from social media, so you’ll need to revisit your email marketing campaign and give it some TLC.
If you are running a referral program, don’t forget to track its progress. A low referral ratio is cause to reevaluate the incentive you offer. On the other hand, a high referral ratio, while great for brand awareness, is cause to reevaluate if your offer is too good and if you’re losing revenue from it.
Total Website Visits
You’ll want to measure the overall number of visits to your website. This is another broad metric but the key to this one is that it grows week by week. Once you see a decline, it’s time to find new ways to attract users or make the website more appealing and engaging.
This is how much customers are familiar with your brand, and the metric isn’t very straightforward. There’s no way to measure this without software, so be sure that whatever platform you use can track any mention of your name online. You can compare your number with that of your competition for reference.
The bounce rate closely follows total site visits. This measures the users that quickly leave your site without performing any kind of action. You want a low bounce rate. This will tell you if your site is engaging, attracting the wrong audience, or has weak call to actions.
Return on Marketing Investment
Your return on marketing investment, or ROMI, measures how much revenue a marketing campaign is generating compared to the cost. Obviously, you don’t want to lose money on any campaign, but this can also guide you in focusing on which campaigns to boost and which to cut costs with.
Cost of Customer Acquisition
How much does it cost to acquire a new customer? Converting a lead into a customer can be expensive and this metric can help you determine which campaigns you’re wasting time and money on.
There are billions of smartphone owners and your mobile site is their first impression of your business. It’s reported that 62% of people are not likely to repurchase from you if they have a negative experience on your site. This could include loading times or formatting issues. Be sure your site is optimized for mobile and track the number of users who access your site from a mobile device. Check out your competitors’ site via a mobile device and make necessary changes.
This is largely used with social networking sites and it provides you with a percentage of your total audience that engages with your content. A low engagement rate could mean that your content doesn’t provide the value that your audience wants, or that you should identify a broader target audience.
Bottom Line on Digital Marketing Metrics
Don’t let your marketing strategies play out without tracking or measuring them. Focus on the above digital marketing metrics to diagnose issues and boost performance. It’s possible, and completely normal, that you have to experiment with different strategies until you nail down a fruitful system. The process of experimenting and ruling out what doesn’t work will make you a more efficient marketer and make the next challenge that much easier. Be sure to look out for digital marketing trends that may warrant a change in strategy and tracking.