Posted at Jul 15, 2019 9:42:00 AM by THAT Agency | Share
It is not enough to employ digital marketing strategies and leave it at that. This is not set-and-forget! You risk wasting your time and resources - and any success you achieve will be both accidental and short-lived. Key performance indicators allow you to track your progress and, if necessary, refine your techniques to achieve targeted goals. Which digital marketing KPIs should you be tracking?
Digital Marketing Metrics to Track
The precise answer depends on your specific goals. However, in general, make sure you are looking at these digital marketing metrics:
This is what it all comes down to: you may be reaching more people, you may have scores of followers, and great traffic. But are they converting and resulting in sales? Look at your sales volume, cost to acquire the sale, response times, customer satisfaction, the profit margin you achieved.
While not the be-all-end-all metric, it is certainly one well worth scrutinizing.
A healthy number of leads in your pipeline provide opportunities to boost sales. Leads are generally categorized as either a marketing qualified lead - meaning that they have take certain actions, such as filling out a form on your website or downloading a piece of content - or a sales qualified lead - which means that they are past the engagement stage and ready to buy.
3. Cost of Customer Acquisition
Say you spend $1000 and acquire 100 new customers (for easy math!). The cost of customer acquisition is 1000/100 = $10. Now, if the cost of acquiring a new customer is as much or more than the value they bring to your business, it is important to evaluate your strategies and see if other routes (e.g., targeting a different audience, increasing margins, etc.) will be more profitable.
4. Customer Lifetime Value
How much profit will a customer bring to your business during the period of your relationship? This is the customer lifetime value, or CVL. This digital marketing KPI underscores the importance of nurturing healthy relationships over the long term. Weigh factors like average size and number of purchases against the cost of acquiring them.
5. Traffic and Landing Page Conversions
We’ll lump these two digital marketing metrics together as they are closely intertwined. People visiting your website represent possible leads; you can convert them with the quality and ease of use of your site and the relevance and authority of your content.
Tracking traffic is step one: now determine how many visitors convert into leads. How many take the next step and complete a call to action (CTA) on a landing page? Look at downloads, form completions, newsletter subscriptions, video views, etc.
There are, of course, other digital marketing KPIs to keep your eye on; to determine which are most critical for your business, and how to effectively track them, analyze results, and apply course corrections or strategy changes, contact the team at THAT Agency.