3 Types of Digital Marketing Metrics that Businesses Vouch for

Digital Marketing

July 27, 2015

Most of the companies are using Digital Marketing to promote their brands. It is a highly effective and targeted method of marketing. The best things about Digital Marketing is that you can track the result precisely. You can research, plan, execute and track the result of a Digital Marketing campaign very easily.

At the end of the day, it is the result that matters the most. And how you measure the result is the next important thing. Just viewing Facebook Likes, website views and clicks are not enough, you need to go deeper to find the insights to enhance your business.

The nature of business and marketing strategy metrics vary from company to company, but here are ten Digital Marketing Metrics that every business should measure…

1. Conversion Metricsㅡ Converting website visitors into a customer is the main goal of a business. Marketers use various conversion metrics to find out the how they are faring in their goal.

a. Cost Per Lead (CPL)ㅡ A successful Marketing campaign is one which gets maximum customers at minimum     cost. CPL compares the cost of the of a marketing activity against the received leads.

b. Conversion Rateㅡ Leads are the inquiry of visitors who are interested in your product or service, here is your opportunity to win customers. Conversion rate tracks the numbers of leads converted into customers.

c. Bounce Rateㅡ Bounce rate shows the percentage of people who visited your website and left immediately. There could be many reasons for this such as irrelevant traffic, slow loading pages, advertisements, etc. A less bounce rate is always better.

2.   Revenue Metricsㅡ To remain solvent and competitive in the business, a company needs to generate and increase the revenue. It also needs to review the effectiveness and profitability of marketing campaigns.

a. Return on Investment (ROI)ㅡ It is the most important metric for all the businesses. ROI is the main tool to measure the profit of a company. A high ROI means that the company is running in the profit. You can easily measure the ROI of each marketing campaign separately.

b. Net Revenueㅡ Net Revenue or Net profit is the total amount of money a company earns, minus all the expenses and taxes. For example, a company has sold goods worth $20 Million, it paid $2 million commission to agents and $5 million to advertisers. So the net Revenue of the company would be $13 million.

3. Traffic Metricsㅡ Traffic is the most important thing for a website, online businesses are totally dependent on traffic. You can track the results of your Pay Per Click and SEO efforts through Traffic Metrics.

a. Sources of Trafficㅡ Once you know where your customers are coming from, you can better formulate your digital strategy. Google Analytics is the best tool to know the source of your traffic. It also gives you the personal details of visitors such as location, age, interests etc.

b. Click Through Rate (CTR)ㅡ CTR is an important component of a PPC campaign. It is calculated by dividing the number of clicks with total views of an ad. Similarly, You can also track when do your audience go and what link they click on.

c. Mobile Usersㅡ Mobile internet users have outnumbered their PC counterparts. All the functions of a computer are available on a smartphone. Keeping in mind the mobile internet trend, you should optimize your site for mobile users and analyze their details.

d. New and returning visitorsㅡ This metric gives you information on the total number of visitors your site gets every day. You can also view how many of them are newcomers and how many are the returning visitors.

Irrespective of your industry and nature of the business, these metrics will help you measure the performance of your website and marketing campaigns.

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