Digital marketing is a process where a company makes an effort to connect with customers in order to promote their products and services, with the help of electronic technology means that include email, social media websites, mobile marketing, online customer groups, webinars and video promotions. To learn more about these, check out our guide to the most important digital marketing tactics.
In the age of digital marketing, the availability of analytical data and measurable metrics are possible in real time, but the need to measure these data is essential for a proven success. Business scenarios are changing rapidly, so the need to measure digital marketing to make it work for a significant success has become an important aspect for marketers to focus on.
To gauge the success of every digital marketing tool, there are various metrics available for marketers to make it work for a bang on marketing strategy. Nonetheless, with the heaps of accessible and available data, it has become challenging and intimidating for marketers to pick the right type of metric for evaluating. There may be a possibility of choosing and monitoring metrics that does not impact significantly to make a success story and making revenues.
To focus on vanity metrics like the number of views or likes on YouTube and Facebook can be wonderful to have but won’t be a huge factor for success that leads to huge revenues.
Metrics that do not have a strong influence over customers and keeping the bottom line with low impact will be a waste of time and resources. Marketers must learn to identify which of the metrics can be significant for the growth of business and to generate revenues.
1. Traffic Metrics
Overall Site Traffic
Insight on how the traffic flows on the website can give you an idea of how effective or not a digital marketing technique is working for you. To measure site traffic, it is important to focus on the number of views and hits your web page receives, but more than that is it suggested to keep a track on the number of unique and distinctive visitors your website gets on the weekly or monthly basis. The chances of attaining potential customers increase when people from different masses visit your website.
Knowing about how the visitors came across and viewed your website, what keyword and phrases brought them to your website can provide you with insight regarding what keywords you should be focusing more to build up your digital marketing campaigns. According to numerous studies, search engines have been one of the primary sources to cause website traffic.
There are millions of Mobile internet users across the globe that access internet on their smartphones, giving a strong reason to marketers to conduct digital marketing campaigns through smartphones. Mobile traffic deserves detail attention from digital marketers as it can help to open the door for greater revenue sources. This metric also gives an insight on what content consumption by business owners.
Conversion per Visit
Search marketing platforms are paid through this metric every time an internet user visits or clicks on your PPC ads. Remember if your revenue per visitor increases your cost per visitor, you are on the right track. Cost per visitor gives you a simple formula for the profitability of each marketing channel. Calculation of CPV is by dividing you total investment in a specific channel by the total number of visitor it generated. This gives you a slight idea to measure popularity and success for each channel.
Click Through Rate (CTR)
Click through rates measurement is highly important for paid ads and email marketing. Pay-Per-Click is measured by the total number of clicks your PPC campaigns receive depending on the total number of impressions. The better the CTR, the higher your quality sources will be.
2. Conversion Metrics
The easiest way to define conversions is the total number of site visitors that get converted into leads or sales whether, by downloading as an asset, making a purchase or subscribing to a mailing list. The ultimate measure of the success of any marketer is based on these numbers. Conversions that are low in rates indicate a number of problems such as unattractive offers or poorly designed websites.
Bounce rate is the percentage of users who end up on your page and then exit from your site without visiting any other page. In other words, it tells you what percentage of visitors visits your blogs or sites but leaves without going through your content; they just visit the main page and exit your site without going to second. Calculation of bounce rate is simple where total numbers of visits viewing one page only are then divided by the total number of visits. It is actually good to have a lower bounce rate as it depicts that visitors are getting engaged by your content and design.
Cost per Lead
The success of any digital marketing depends on how well your website and content convert website traffic into maximum leads or paying customers at minimal possible costs. This metric helps you define the lead conversion ratio of a specific campaign, giving a slight idea to the owners and marketers whether their business is profitable or not.
Average Cost Per Page View
In order to gain profits from your campaigns, your cost per page view should be remarkably lower than the revenue you generate from the page. The funds poured into a paid digital marketing channel like PPC can be controlled by knowing the average cost per page view and the amount of revenue you generate from a particular page.
Average Page View per Visit
One of the most important and foremost components in your digital marketing campaign is to drive good traffic to your website. It is equally important for you to engage them to stay longer and thoroughly follow your content. Chances for engagement with site visitors increase when your page is viewed from each visit.
The Rate of Return Visitors
The rate of return visitors measures the popularity of your site along with the amount of traffic your site is generating. It is good to know your rate of visitors as it can give you an insight on how you can improve your content to attract site visitors who for some reason have not yet converted as paying or lead customers.
Average Time on Site
Through this metric, we can measure how well we are engaging with the targeted website visitors by how long their average times during each visit to our site. In other words, this is a good all-purpose indicator of how well your site is performing, as visitors who spend a lot of time on your site are finding useful content. Visitors who tend to spend a lot of time on your site are most likely to be your most committed customers.
3. Revenue Metrics
Value per Visit
Value per visit is an immense value to quantify, the reason being your visitors add value every time they come to visit your site or blogs. It isn’t simply revenue metric; it is actually tied to your interactions number. Tangible value is added when dollars are spent on a purchase in e-commerce; however intangible value is created when a customer leaves a review or shares a product on social media. Keeping a check on this metric over time gives you insight as to how successful you are at getting customers to perform a certain value-added action, such as leaving a comment or writing a review.
Return on Investment (ROI)
Return on investment is by far the ultimate measure of your marketing success. This metric can be easily measured by website traffic that is converted into new paying customer. What area of digital marketing is generating sales and revenue are identified through this metric.
Each of these metrics described above is a good indicator as to how successful your digital marketing efforts are. Each metric emphasise on a specific area and stage in a digital marketing campaign, so you can make the most out of each and every tool.