The pressure to drive successful digital marketing campaigns is more intense than ever for marketers today. With new platforms emerging and more people moving online due to the effects of the pandemic, many organizations are feeling the strong need for improved marketing tactics that meet the demand for strong digital experiences. From Facebook to Google, pay-per-click or paid search, each platform provides its own analytical capabilities making metrics even more challenging in determining what matters most when tracking ROI.
With all of this in mind, how do digital marketers begin to sift through the data and decide what marketing strategies are truly making the most impact? We have put together a list of some valuable metrics you should be tracking so that you are able to accurately analyze and understand the results of your marketing campaigns.
Marketing Revenue Attribution
Marketing revenue attribution identifies how much revenue can be attributed to your marketing campaigns as a whole. Tracking this is important in showing how much revenue was generated by each of your marketing channels and can further prove the value of your efforts. One example would be assessing the impact your social media marketing has on sales or the conversion amount in a Google Shopping ad campaign.
Customer Acquisition Cost (CAC)
Customer acquisition cost looks at the total sales and marketing spend needed to convert a lead into a customer, including all costs from salaries, commissions, technology, software, and any other manpower or software overhead. CAC can also help you make budgetary decisions and help you find opportunities to shorten lead times and convert customers by spending less.
Customer Lifetime Value (LTV)
Tracking customer lifetime value will show you how much revenue to reasonably expect over the average lifespan from a single customer. One useful tip would be to reach out to current customers to see what they value and where you can improve. Doing this helps maintain your relationship with your customers, with the goal of positive interaction that can expand your customer’s lifetime value.
Digital Marketing ROI
All companies want to see a return on their investment. Calculating your digital marketing return on investment is essential in assessing your monthly and annual performance and can also help you start planning strategies and budgets for upcoming planning periods.
Website & Referral Traffic
Attracting visitors to your website is key when it comes to delivering effective marketing campaigns. Understanding your website traffic and knowing where it is coming from is extremely important. You want to know exactly how much traffic is coming from organic, direct, social media, or referral based sources. Regularly tracking your traffic to lead ratio can help you determine when its time to make changes to your website copy, design, call to action, or forms.
Marketing Qualified Leads (MQL)
A marketing qualified lead is someone who has interacted and shown interest in your brand and who could eventually become a potential customer. It’s a great metric to track and helps you understand how many leads you are generating directly from your marketing tactics.
Return on Ad Spends (ROAS)
Return on ad spends helps measure the revenue generated by your ads against your investment, usually determined by a ratio. To calculate your ROAS, you will take your conversion value and divide it by the cost of the campaign which will determine the success of your ad campaigns.
Tracking conversion rates will show you the percentage of visitors who completed a specific action, like making a purchase or signing up for your newsletter. This can be helpful in a situation where you notice you are receiving a lot of traffic on a specific landing page but the conversion rate is low, you can optimize the content to improve the conversion rate.
Social Media Engagement
Social media can play a big role in marketing, and one metric you should definitely be tracking is engagement. When you understand who is engaging with your content you will be able to better convert them into leads. Any way that a potential customer engages with you on social media can be measured and analyzed to further show the effectiveness of your organic and paid social campaigns and can also help you adjust content accordingly.
Overall, tracking metrics is not something you should check once and then never track again. Regularly tracking numbers on a monthly, quarterly and annual basis can provide you the data you need for your business to grow. Let us help you get started! Contact us today to learn more.