If you’re a business owner looking for ways to attract more clients — and hit your sales targets — you will most likely want to launch a new digital marketing campaign.
But how do you know if your marketing efforts are working?
Enter digital marketing metrics.
These metrics will give you a clear picture of how your digital marketing efforts are performing and where you should focus most of your efforts. That’s why, in this article, we’ll be taking a look at four types of digital marketing metrics that every business owner should know.
Traffic generation is arguably the first step in any digital marketing strategy.
It’s responsible for attracting visitors to your website and lays the foundation for all other marketing activities. Without a steady stream of traffic to your website, it becomes difficult to generate leads, make sales, and grow your business.
There are many ways to generate traffic to your website, including search engine optimization (SEO), pay-per-click advertising (PPC), social media marketing, email marketing, and content marketing. By using a combination of these tactics, you can reach a wider audience and drive more qualified traffic to your website.
If you want to measure the effectiveness of your traffic generation efforts, you should be tracking the following metrics:
a) Website Traffic
Website traffic is the number of visitors to your website.
It provides insights into how many people are visiting and engaging with your website. The more people are visiting your site, the higher your chances of getting more clients.
To measure your website traffic, you can use tools such as Google Analytics or SimilarWeb. These tools will give you a detailed breakdown of the number of visitors to your site, the sources of traffic, and the pages that receive the most traffic.
b) Bounce rate
Bounce rate refers to the percentage of visitors who leave your website after only visiting one page. In other words, it’s the number of visitors who “bounce” off of your website after only viewing one page.
Why is it important to track?
Well, a high bounce rate can indicate that your website is not providing the information or experience that your visitors are looking for. This can negatively impact your conversion rate, as visitors are less likely to complete a desired action, such as making a purchase or signing up for a newsletter.
Lead capture is all about converting website traffic into valuable leads that can be nurtured into paying customers.
Here are the main metrics you should keep an eye on:
a) Conversion Rate
Conversion rate is the percentage of visitors to your website that take a desired action, such as filling out a form, signing up for a newsletter or making a purchase. Essentially, it measures how effective your website is at turning visitors into customers or leads.
A high conversion rate is a sign that your website is effectively communicating its value proposition and encouraging visitors to take the desired action. On the other hand, a low conversion rate could indicate that there is a problem with the design of your website, the messaging, or the offer being made to visitors.
b) Lead Volume
Lead volume is the quantity of leads generated by your marketing efforts.
It is a key indicator of the success of your marketing and lead generation efforts. The more leads you generate, the more opportunities you have to get more clients. Additionally, having a high lead volume can give you valuable insights into what is working in your marketing strategy and where you can make improvements.
It’s important to monitor your lead volume regularly to ensure that you are generating a steady flow of leads for your sales team to follow up with.
c) Lead Quality
Having a high volume of leads is great, but if those leads are not likely to become customers, then your time and resources will be wasted.
Lead quality indicates the potential of a lead to become a customer — and is determined by factors such as demographics, interests, buying behavior, and level of engagement with your website.
By tracking your lead quality, you can ensure that your sales team is focusing their efforts on leads that are most likely to convert into customers.
d) Lead Source
Lead source refers to the origin of a lead.
It’s a metric that helps you understand which marketing channels are generating the most leads and where you should focus your efforts.
Lead sources can be diverse and include a variety of marketing channels, such as your website, social media, search engines, email campaigns, trade shows, and referral marketing.
As a business owner, it’s important to track your lead sources so that you can see which channels are providing the most valuable leads and adjust your marketing strategies accordingly. This information can be collected and analyzed through a variety of tools, such as website analytics, lead forms, and customer relationship management (CRM) systems.
e) Cost per lead (CPL)
Cost per lead measures the cost incurred in acquiring a single lead, and helps in determining the effectiveness of your marketing strategies – and how much it costs to generate leads.
If your CPL is high, you could be spending too much on acquiring leads, and need to find ways of bringing it down. On the other hand, if the CPL is low, it means that your marketing strategies are working well, and you can consider increasing your marketing budget.
Lead nurturing is the process of building relationships with your leads, through targeted communication and education — mostly through email — with the objective of encouraging them to move further down the sales funnel.
Lead nurturing can be automated and triggered based on your leads’ behavior and engagement.
For example, you can set up an automated email series that is triggered when a lead downloads a whitepaper from your website, or when they sign up for a webinar. This way, you can ensure that your leads are receiving relevant and valuable information at the right time, based on their interests and needs.
To understand the effectiveness of your lead nurturing efforts, you should pay attention to your lead nurturing metrics. These metrics include:
a) Click-through rate (CTR) is the percentage of leads who clicked on a link in an email as part of your lead nurturing campaign. It is an indicator of the level of engagement with your content and can be used to optimize the design and content of your emails to improve engagement.
b) Conversion rate measures the percentage of leads who take a desired action, such as filling out a form, making a purchase, or subscribing to a newsletter. It is an indicator of the success of your lead nurturing campaign and can be used to optimize your content and messaging to drive more conversions.
c) Lead score is a numeric value assigned to each lead based on their behavior and level of engagement. It is used to identify the most qualified leads and prioritize your lead nurturing efforts.
d) Time to conversion measures the amount of time it takes for a lead to take a desired action, such as making a purchase or filling out a form. It provides insight into the effectiveness of your lead nurturing efforts and can be used to optimize your strategies to reduce the time to conversion.
Revenue metrics are a type of performance measurement that focus on the financial impact of your marketing efforts. They are designed to help you understand the return on investment for your marketing campaigns.
Some common revenue metrics include:
a) Lifetime Value (LTV)
LTV is the estimated value a customer brings to your business over the course of their relationship with your business — including repeat purchases.
It is calculated by multiplying the average purchase value by the average number of purchases made per customer, and then multiplying that number by the average customer lifespan. The result is an estimate of the total revenue a customer will bring to the business over their lifetime.
b) Return On Ad Spend (ROAS)
ROAS indicates the revenue you generate from every shilling spent on advertising. It is calculated by dividing the total revenue generated by the advertising spend.
For example, if your business spends Ksh 100,000 on Facebook Ads and generates a revenue of Ksh 500,000, the ROAS would be 5 — meaning that for every Ksh 1 spent on ads, Ksh 5 is generated in revenue.
With this information, you can easily determine the effectiveness of different advertising and optimize your ad spend accordingly.
It’s important for every business owner to understand these key digital marketing metrics. By monitoring these metrics regularly, you can ensure that you are making the most of your digital marketing efforts and achieving your business goals.
Remember, the key to success is to regularly analyze your data, identify areas for improvement, and make data-driven decisions to drive growth and success.
Higanijulu helps business owners and entrepreneurs leverage their online presence to attract the right prospects, and convert them into loyal customers.