Latest posts by David (see all)
- Important KPIs And Marketing Metrics You Need To Be Tracking - May 7, 2019
- 5 Key Legal Technology Solutions to Improve Your Firm’s Efficiency - April 25, 2019
- Increase Engagement With Giveaways On Your Social Media - April 12, 2019
The online market is highly competitive. Businesses that want to effectively reach out to their target audience must truly stand out from the other competitors. Fortunately, digital marketing can present that opportunity. However, marketing strategies that will help your company stand out, have to be exceptional.
You cannot expect the same marketing campaign to work twice because there’s no one-size-fits-all in the marketing world and you certainly cannot develop marketing campaigns without some level of creativity involved. Still, there’s always a degree of uncertainty when launching new campaigns or marketing promotions.
The main reason is that you can never accurately predict how consumers will respond or react to your efforts. That’s why KPIs (Key Performance Indicators) and marketing metrics can help you monitor any relevant factor regarding your campaigns. It will help you determine whether or not your strategies are bearing fruit or if there’s a need for improvement. With that in mind, here are a few important KPIs and marketing metrics you need to be tracking.
Every business, nowadays, has a website. Website is one of your most important points of sale, as well as one of your most effective advertising channels. Every time a consumer sees your add, promotion or marketing campaign, chances are that they’ll look you up online. In other words, they’ll check out your website.
That’s why website traffic is indeed an important marketing metric. It allows you to determine how many consumers on average browse through your website. More importantly, this metric allows you to determine the origin or the source of your website traffic.
As an example, if you have a lot of website visitors originating from social media, it means that your social media marketing campaign is effective at driving leads to your website. In addition, you can measure organic traffic. It will show you how visible your business is online and how many people find you through natural and organic search. This can help you determine the effectiveness of your SEO (Search Engine Optimization) efforts, for instance.
Lead acquisition cost
This metric allows you to determine how much does it cost to generate a lead from your marketing efforts. Every business and marketers alike are, in fact, concerned with expenses and the return on investment (ROI). If you spend too much but earn too little in return, your efforts aren’t very effective. But why are leads important, to begin with?
The main reason leads are important is that they are consumers that show interest in your products or services. If there’s initial interest, you can nurture that lead further until they are ready to convert. In other words, every lead has the potential to become a customer sooner or later.
Lead acquisition costs are oftentimes associated with paid advertisements, such as Facebook Ads or a PPC (Pay-Per-Click) campaign. However, it’s important to determine lead acquisition costs in every marketing strategy, so that you can understand whether your strategies are working or not, as well as if your messages are visible enough to reach consumers.
Customer retention rates
The success of a marketing campaign, as well as the overall success of a business, relies not only on the ability to generate new customers but also in the ability to retain them. Customer retention and loyalty are not just important factors in business success but also in its profitability.
As a matter of fact, a repeat customer oftentimes spends as much as 67% more than a new customer. In addition, it can cost a company 6 to 7 times more to acquire a new customer than it would cost to retain one. That’s why it’s important to set the customer retention KPI and measure its impact on your company’s bottom line.
If the results aren’t favorable after a while, you can make an effort to improve the retention rate. One of the best ways to achieve that is to get customer feedback and improve your efforts based on the feedback your customers have provided. That way you will do what customers want and avoid making a mistake by improvising.
At the end of the day, the entire purpose of a marketing campaign is to boost sales as much as possible. You want to convert as many leads as you can into customers. That is a metric you need to be tracking at all times. However, conversion doesn’t only have to mean sales.
Conversion can also be associated with any activity that has any value to your business. As an example, conversion can also include activities, such as email subscriptions, eBook downloads, account creation and so on. Still, conversion regarding sales is always the top priority for businesses.
That being said, if you’re promoting a product or a service to consumers, the conversion rate can help you determine if your marketing efforts are working or not. If there aren’t many conversions, it means that there’s an underlying issue that needs to be resolved soon. On the other hand, if you favor good conversions, it means your marketing efforts are performing exceptionally.
Marketers constantly test out various different strategies, in order to maximize the effectiveness of their campaigns. However, waiting till the end of the campaign only to determine if it’s working or not is a monumental waste of both time and resources. That’s why KPIs and metrics are there to show immediate results and if you don’t like what you see, you can make improvements on the spot.
Featured image: Unsplash