How do you track the marketing results, without knowing what metric is? There is no other way. In a digital marketing strategy, measuring campaign performance in real-time is an undeniable necessity. Without metrics, there will be no way to know what is going well in your business.
The absence of metrics does not allow you to identify what is wrong, or what needs to be improved or even interrupted. If in the isolated context of a company, that is already very significant, imagine in a highly competitive scenario such as the one represented by the current market.
Those who do not know what metrics are in marketing and do not use them to their advantage, are left behind. And even worse: even if you make a high investment in campaigns for the different channels, you may be losing money without knowing it.
Things don’t need to be this way. Every digital marketing tool has means to measure the performance of strategies. And this occurs entirely through various existing metrics.
On the other hand, with tons of data at your fingertips, and easily accessible, choosing the right kind of metric to monitor can be challenging for marketers. Many companies fail when it comes to strategy when they choose metrics that have no relevance to what matters most in the business world: increasing revenue. If you have that problem, you are going to end it right now.
In this article, in addition to explaining what metric is in its concept applied to digital marketing, I will further address the need to measure results. I am also going to refer to the main metrics that you must manage in your business.
In this article you have the great opportunity to learn and put into practice something that can expressively improve your business.
Why is it important to measure results?
Before talking about metrics, I’m going to put you in relation to the importance of measuring results. Companies are constantly changing and must adapt to them if they want to maintain their participation or find space to grow in the midst of so much competitiveness.
The contest is too big to give you the luxury of not being demanding with the performance of your strategies. Then, identifying problems and knowing what you should improve is essential to guarantee more business opportunities and increase your results.
In that context, defining metrics and constantly evaluating them is a good measure to discover if your efforts are being rewarded. Also, if the results are what you expected. But something super relevant: knowing if your resources of time and money are being properly invested.
Imagine defining a marketing budget, in which 60% is allocated to sponsored links on Google or Facebook, without identifying that this is not generating any income. For how long will this commitment to paid media continue, without affecting the profits of the business?
It is exactly the reason why you must understand what metric is and know how to apply it in its most varied types.
What is metric?
Metric is a set of measurable values used by marketing teams to identify and measure the overall performance of strategies and campaigns. It is essential that the teams follow the different channels used to know their progress. For that, metrics are used.
Let’s assume you have a content marketing agency. You consider that a certain customer is inflexible in relation to seeing a large increase in email subscriptions per month. If you had an understanding of all content marketing metrics, you could introduce him to some amazing news.
For instance: “Readers are signing up, but no one is testing your product. If you want better results, it’s time to focus on the content in the middle of the sales funnel.” But how to get to that diagnosis, without knowing what a metric is and choosing the most appropriate for your strategy?
It is difficult, very difficult.
Why are metrics important?
As you must have already noticed, tracking business metrics is a good way to know whether or not you are on the right track. Ultimately, what are you doing to ensure a future of healthy growth and excellent market share?
Where do you find the mistakes and successes of each strategy? Which channel offers the best return on investment? Is the marketing budget being used in the best way? These are all questions that you find answers to by understanding what metric is and how to use it to your advantage.
In addition, tracking your metrics also has the following advantages:
- Measure financial performance – vital to maintaining healthy cash flow
- Reveal the truth about the performance of your business in its particular and general aspects
- Provide a viable way to achieve overall business goals and strategies
- Ensure that employees are aware of their importance for the proper functioning of the business, showing them what is being measured and emphasizing that their work has great value
- Highlight any problem that may go unnoticed, as this positively reflects on productivity and profits
Now that you have a good understanding of what metrics are and know its advantages, it remains to know which ones you are going to use.
It is about that matter that I am going to talk to you right away.
10 marketing metrics that you should follow in your business
Strong metrics can give you and your business a foundation to overcome the hurdle of market unpredictability. If you are starting on the matter or need to reformulate your current strategy, you have come to a better place to clarify your doubts.
Take a good look at these 10 marketing metrics and analyze their incorporation into your campaigns.
1. Return on investment (ROI)
The Return on Investment (ROI) can be considered the most important factor for any marketing campaign because this demonstrates their profitability.
After all, what business does not want to know what the income is derived from a certain strategy?
ROI can be adequately measured by site traffic that is eventually converted into new customers.
That metric will also help you identify which effort in your marketing campaign is generating sales and revenue, as well as which areas need to be overcome.
In other words, a positive ROI means that your marketing strategy is effective, while a negative ROI indicates that something needs to be changed.
2. Cost of Acquisition per Customer (CAC)
According to what I mentioned, ROI is measured by the number of new customers who pay for a certain period of time.
Now, the cost to acquire those new customers results in another metric.
This is defined based on the total of your marketing and advertising costs in a period, value that is divided by the number of paying customers generated during that same period of time.
Although the calculations are not perfect, the CAC can give you a good insight into how effective and successful your marketing campaign can be.
3. Cost per Lead (CPL)
The success of a digital marketing campaign depends on how well your site and content convert traffic into leads. And even if they manage to acquire more customers at the lowest possible cost.
Thus, the Cost per Lead (CPL) is a metric that defines the main conversion rate of a particular campaign and its corresponding cost, giving information to the entire team about its profitability.
Ideally, try to filter it to establish the cost for each channel and identify which are the most profitable. However, you should not reduce a channel simply because the CPL is higher. Many times, you may find that customers from that channel spend more or more often than those from another channel, which seems less expensive.
4. Customer retention rate
Customer retention can be difficult to measure if you’re buying cycle is long or if your business revolves around typically one-off sales. Now, subscription-based services, ecommerce platforms, and most mainstream businesses can measure retention.
They do this by calculating the percentage of customers who return to the business to buy again. A low customer retention rate can be a symptom of a product or service that was not liked by the public, or an indicator of lack of disclosure, among other factors.
Retention is also important in calculating the average value of a customer. Retention is also important to calculate the average value of a customer.
5. Conversion rate
Measuring how many visitors to your site actually convert into leads or sales is a valuable and tangible metric to define the success of your digital marketing actions. Remember that the conversion is associated with your final objective, be it the subscription to the newsletter, the download of some interesting material, such as electronic books, infographics or the sale itself.
Then, if your purpose is to gather valuable information about site visitors, potential customers, or to convert visits into sales, monitor your conversion rates. This procedure can give you excellent insight into which aspects of your campaign are most effective.
The low conversion rate is possibly a red flag that points to some element of the campaign, such as content or a CTA that is not performing as expected. In those cases, there is a clear sample of necessary changes.
6. Average ticket
The average ticket is related to the amount of money that each customer spends per purchase. This value will be influenced by the offer of discounts, promotions in sales locations, or even by personal recommendations from the seller (selling/cross-selling).
Keeping a variety of products and having all your versions and sizes available is equally positive for meeting consumer demand and increasing your average ticket.
7. Total number of visits
Your site should be the main place of arrival for your customers. But you can also measure total visits in any other space relevant to your strategy, such as a specific landing page of your site or a pay-per-click campaign.
Measuring the total number of visits gives you an idea of how effective your campaign is being in driving traffic. If you notice that your numbers drop between one month and another, you will be able to investigate the marketing channels and thus discover the reason for such a result.
In a healthy and stable campaign, the total volume of visits is expected to grow steadily.
8. Traffic sources
Generally, web analytics platforms collect and supply this data, with which you get to know where the visitors came from and then group them in the channels. In Google Analytics, you find this data in the “Acquisition” section.
They are very useful for a large-scale digital marketing campaign. After all, “total views” can show accurate information about which channels are outperforming the rest, in terms of results. That way, you can invest in those that bring the most return.
The 4 main channels you should watch are:
- Direct: indicates how many people visited your site directly, by typing the address in the browser.
- References: includes external links from other sites.
- Organic – Includes visitors who found the site after digging through the search engines. It is a good way to identify progress in your SEO.
- Social: Include visitors who found your site on social media.
9. Click-through rate (CTR)
Pay-per-click (PPC) campaigns are viable sources to drive and increase traffic. Your results can be effectively measured by discovering the number of clicks your PPC ads receive, based on the total number of impressions.
Every time your ad is displayed, an “impression” is verified and the CTR measures how many people clicked on your ads. The higher the CTR, the better your quality scores. This allows you to reduce PPC costs by receiving price discounts from Search Engine Marketing platforms, such as Google Ad words.
10. Ranking in search mechanisms
With the advancement of the internet, people began to use search engines to solve their problems and get answers to their questions. This goes for everything.
When a need arises, everyone runs to inquire, mainly Google. So, you are going to want your company to appear, preferably, in the first organic results of the first page. It is the key for potential clients to find you.
To help you on that journey, it is essential to produce quality content for the various stages of the sales funnel, but always based on good SEO practices. I remind you that in general, the results of SEO optimizations are observed in the long term. For that reason, don’t stop paying attention to that metric to evaluate your tactics.
What is the difference between metric and KPI?
You will have already understood what metric is. But when it comes to KPIs, what would the difference be? Key Performance Indicator can be translated as Key Performance Indicator.
The easiest way to understand the difference between metrics and KPIs is, first, to know that both are quantifiable measures of a strategic or tactical activity.
Simply put: KPIs are strategic and metrics are tactical. KPIs are measurable values that reflect a business (or strategic) objective, as well as the success of the business when it reaches it.
A metric is also a measurable value, but it reflects how successful the activities are that are in place (tactics) to support the execution of the KPI. Also, I mentioned at the beginning that a metric is a measure that is used to track aspects of your business activity, identifying success or failure in its performance.
Both the metrics and the KPIs must be correctly defined. The basic difference is that these types of measures seek the same goal but achieve it differently. The strategy is more specifically based on what and the tactic on how.
Capture leads today with Klickpages
Every business wins when its metrics reveal that the investment is being well made. For example, when it comes to capturing leads, you need a landing page suitable for each purpose you set out for yourself. That care guarantees the conversions you want so much.
I suggest you follow these three steps and launch a high-converting landing page:
- Choose your model: know the high conversion alternatives proven by tests.
- Customize the page: edit the texts, colors and images, as well as hide the elements that are not useful.
- Publish: finally, you only need to publish your own domain, without additional hosting costs.
Get your campaigns started with great force!
In this article, you learned what metric is, its importance and the main ways to measure the results of your digital marketing actions. Now you have information in your hands to analyze your strategy and define what deserves to continue and what needs to be improved.
Ultimately, all of this affects your profitability, which is excellent. Regularly checking metrics allows you to monitor both the health of your campaigns and your business. But it is useless to collect and analyze these metrics if you do not do anything with them.
So over time, you will be able to refine your tactics and carefully analyze which strategies work best. And when it comes to generating leads, count on Klickpages, a powerful tool to create your landing page that fits your needs.