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Digital Marketing ROI: 11 Metrics You Must Understand

Any novice who has ever dipped their toe into Google Ana­lyt­ics can attest that the sheer vol­ume of data avail­able could eas­i­ly crush even the might­i­est Avenger. Fight­ing Thanos. On Ego. With all his Avenger bud­dies.

Let’s put it this way; you need to be a Guardian of the Galaxy to man­age the her­culean task of sift­ing through all that data.

But before sig­nal­ing The Mar­vel Bunch to help you mea­sure the ROI of your dig­i­tal mar­ket­ing efforts, you need to get some basic met­rics. Because, let’s face it, with­out the right equip­ment, even a God of Thun­der is pret­ty help­less.

1. Cost per Lead

If your web­site is col­lect­ing leads for your sales team to “close,” you need to know how much you’re pay­ing for each lead.

If the cost of each lead is more than what you pro­duce by clos­ing leads, that is indica­tive of a back­ward return on invest­ment.

2. Lead Close Rate

How do you track your lead clos­es? I’m will­ing to bet you’re doing this offline, which means that data isn’t being inte­grat­ed into ana­lyt­ics or the online data you’re gath­er­ing.

That’s fine, but you need to make sure you keep an eye on your lead close rate so you can check that against the leads being gen­er­at­ed. This will help you ensure your dig­i­tal mar­ket­ing efforts are deliv­er­ing leads prof­itably.

This infor­ma­tion is also help­ful to use as a con­trol against new dig­i­tal mar­ket­ing efforts. If you sud­den­ly get an influx of new leads but you find they close at a low­er rate, then you may need to adjust your tar­get­ing efforts.

3. Cost per Acquisition

Using the data above, you should now be able to fig­ure out your cost per acqui­si­tion.

This can be fig­ured sim­ply by divid­ing your mar­ket­ing costs by the num­ber of sales gen­er­at­ed.

You now know what it costs to get a sale, which will help you get a firmer grasp on your ROI.

4. Average Order Value

While you want to see the num­ber of your orders increase, pay­ing atten­tion to the val­ue of the aver­age tick­et can reap sig­nif­i­cant rewards.

A small increase in aver­age order val­ue can bring in thou­sands of dol­lars of new rev­enue, and can often be as sim­ple as improv­ing user expe­ri­ence and pro­vid­ing upsell oppor­tu­ni­ties.

5. Conversion Rates by Channel

We like to know where our traf­fic is com­ing from. Whether it’s organ­ic, paid, social media, or oth­er avenues, this infor­ma­tion tells us where the bulk of our cus­tomers are and/or where the mar­ket­ing efforts are pro­duc­ing the most buzz.

But that’s not the whole sto­ry. Con­ver­sion rates can be a bet­ter indi­ca­tor of suc­cess and let you know where the best oppor­tu­ni­ties lie.

Let’s say 75 per­cent of your traf­fic comes from organ­ic mar­ket­ing and 25 per­cent from PPC. But lo and behold, your PPC con­ver­sion rates are dou­ble that of organ­ic.

What you learn from this is sim­ple: Invest more in PPC. If you can increase PPC traf­fic to match organ­ic, you’ve just dou­bled your ROI.

6. Conversion Rates by Device

Just like check­ing con­ver­sion rates by chan­nel, you want to do the same by device.
If one device has lack­lus­ter con­ver­sion per­for­mance, it may be time for you to rein­vest in that area, espe­cial­ly if you see traf­fic for that device increas­ing (mobile, any­one?).

7. Landing Page Performance

There are a lot of things to mea­sure when it comes to the per­for­mance of your land­ing pages: Bounce rates, CTR, con­ver­sions rates, con­ver­sion assists, etc.

Look for any land­ing pages that aren’t help­ing dri­ve con­ver­sions need to be fixed or elim­i­nat­ed, or the mar­ket­ing dri­ving the traf­fic needs to change.

Either way, you’ll want to know how each page is per­form­ing.

8. Blog Click-Through Rates

Blogs are a great way to get traf­fic to your site, but what are you doing with that traf­fic?

While blogs have noto­ri­ous high bounce and exit rates, that doesn’t mean you have to resign your­self to those ridicu­lous­ly val­ue­less num­bers.

Instead, use them to set goals for dri­ving traf­fic from your blog to your main site. A small increase in blog click-throughs can pro­vide valu­able new busi­ness at almost no addi­tion­al mar­ket­ing costs.

9. Customer Lifetime Value

You can’t tru­ly under­stand the ROI of your mar­ket­ing efforts until you have a good idea what the aver­age cus­tomer will spend over their life­time.

Let’s say, for exam­ple, that it costs you $500 to bring in a new sale or client. But they only make a $500 pur­chase. Well, that seems like a net loss, once you con­sid­er the cost of every­thing else beyond your mar­ket­ing invest­ment.

But what if you knew that that cus­tomer will go on to spend $500 every six months for the next five years. The aver­age life­time val­ue of that client is $5,000. Now, $500 to get that cus­tomer doesn’t seem so bad, eh?

That’s not to say you want to come out at a loss on every first-time cus­tomer, but if the ini­tial invest­ment brings a hefty long-term prof­it, you can more eas­i­ly chalk up that first sale as a mar­ket­ing expense, know­ing prof­its are to come.

10. Brand/Non-Brand Factors

Keep an eye on and dif­fer­en­ti­ate between brand and non-brand search­es.

Brand search­es tend to have a high­er click-through and con­ver­sion rates than non-brand because you’re hit­ting peo­ple already famil­iar with you.

By sep­a­rat­ing out this data, this gives you addi­tion­al insight into what is or isn’t per­form­ing up to par.

11. YoY comparisons

Final­ly, when com­par­ing data, try not to com­pare month to month as that doesn’t take into account sea­son­al­i­ty or even oth­er month­ly relat­ed abnor­mal­i­ties.

Look at year-over-year com­par­isons to get a true sense of how your cam­paign is improv­ing.

Are You Getting ROI?

This is the ulti­mate ques­tion, espe­cial­ly those in the C-suite. To pro­vide an informed answer, you have to get your head around these met­rics. Let the met­rics tell the sto­ry of your mar­ket­ing cam­paign and adjust accord­ing­ly.

SOURCE

By | 2018-05-30T10:43:03+00:00 May 29th, 2018|Industry News|Comments Off on Digital Marketing ROI: 11 Metrics You Must Understand