Marketing Metrics are measurable values used by marketing teams to demonstrate the effectiveness of campaigns across all marketing channels. Providing metrics, you can easily track your performance based on your marketing goals.
It is, also, a key indicator of how well your marketing efforts for your product or service are delivering. We can clearly define it as a means to analyze your effort vs. results qualitatively and quantitatively. This enables you to execute decisions for improving productivity as well as profitability.
Importance of Marketing Metrics
The marketing metrics have become vital to success for many companies, as it helps in performance measurement and offers a proper insight into their business operations. The firms need the metrics to develop and improve performance or their development prospects and ultimate survival.
Despite the formation of both financial and non-financial performance measures, marketing is still facing burdens. The ever-evolving market places these burdens on the marketers and calls for the need for their method’s refinement.
The quantity and the nature of the marketing metrics which are being used by the managers are increased. The managers utilize them to gauge the marketing strategy and their effectiveness to the market and target audience. All these metrics are used to critically assess the marketing plan and achieve improved performance of the firm.
The other metrics are being strategically used to achieve success and goals achievement. There are several purposes of the marketing metrics, most importantly it’s being used to increase the firm’s marketing responsibility, and to rationalize the marketing expenditure and marketing initiatives, and also the metrics drive the customer value to the firm to create linkages between the strategy and goal.
Marketers are naturally in a revolving cycle of constant change and luminous flux. With the increasing number of marketing options and comprehensive strategies, companies and marketers need to stay ahead of their fierce competition. Thus, to help formulate an effective strategy, it is imperative you understand these critical metrics.
Analyzing your revenue is important in knowing the effectivity of your marketing metrics. Every company wants to spend money on something that is generating money. Tracking revenue means you justify your successful investment and allows you to deviate funds from less successful ones to experiment with other tactics.
Cost per lead
Calculating your customer acquisition costs requires an assessment of how successful and profitable each activity. Escape it down to establish the cost per lead for each channel and identify which are the most cost-effective. However, you shouldn’t cut back a channel simply because it costs more per lead. It’s substantial to remember that a lead might convert through a particular channel before turning to the point of conversion.
Website Traffic to Lead Ratio
Understanding your website traffic and where it is coming from is extremely important. You need knowing whether it’s coming from organic, direct, social media or referrals and what they do when they arrive. How many of this visitor is convert into leads and customers.
A great number of page views and numbers of visitors might look good in a report. They are equally significant to support you measure the visibility of your website. More visibility increases your website traffic but if your traffic-to-lead ratio is low or decreasing, it’s a visible sign that something is missing on-page. If you want to make further study, define your marketing-qualified leads (MQLs) and sales-qualified leads (SQLs) to establish the quality and readiness of the leads you’re generating.
Landing Page Conversion Rates
Just like traffic to lead ratio, if your landing page is receiving frequently of traffic but gaining a low conversion rate, it’s a red flag that you need to check out your page and produce some changes. It’s useless if you have a landing page that doesn’t generate leads. You need to monitor your conversion rate to aid you to establish quality content that resonates with your company well.
Customer Lifetime Value and Churn Rate
There is precisely no better way to measure customer value than reach out to your current customers. As a result, it doesn’t just help you to keep in contact with leads, but it can also help reduce the churn, keep your customers happy and expand your customers’ lifetime value. Developing lead nurturing campaigns that reach out to your remaining customer arises a tremendous way to increase the lifetime value of your customers. Recognizing the number of customers that often buying and how long they remain a customer is vital in your business. Don’t lose your customers and don’t enable them to consider one-off purchases only. Therefore, you need to work on your post-purchase nurturing.
Convert analytics into actions, it means nothing if you don’t do anything with them. Making measures of these metrics should represent an integral part of your marketing strategy. Understanding the people and journeys behind the numbers delivers insights that encourage you to patch up the leaky funnel and direct investment into the most successful methods more intelligently.
Most of the online consumer is becoming more sophisticated by the day. Consequently, we need to respond to changes and establish marketing methods that evolve with them. These metrics of digital marketing will allow you to evaluate the position and success of your marketing strategy. I hope this article will allow you to see why your efforts are lacking growth. Consider these metrics to overcome hurdles and achieve more profitable results. If you eagerly want to learn more about helpful metrics feel free to contact us. Don’t forget to check our Digital Marketing Strategies for free.