Digital Marketing ROI Metrics: –
It is important to identify key metrics to reduce noise and accurately measure and track the ROI of digital marketing efforts.
Here are 15 key metrics that will help to measure the ROI of digital marketing, showing that efforts have been successful and adjustments are needed.
Measurements help to measure the digital marketing ROI.
1. Lead price per lead:
- If the website is collecting leads, need to know how much paying for each lead.
- If the price of each lead is higher than that produced by the closing leads, it indicates a lagging return on investment.
- Knowing the price for each lead gives us insight into how well marketing efforts work and gives us the insight we need to make more strategic and budget decisions.
2. Lead Close Rate:
- What happens offline means that data is not analyzed or integrated into the collected online data.
- Make sure to keep an eye on the lead close rate so that it is checked against the leads being produced.
- This will help ensure that digital marketing efforts provide profitable leads.
- This information can also be used as a control against new digital marketing efforts.
- If a sudden influx of new leads is received and they close at a low rate, the target efforts must be adjusted.
- Provides insight into how sales teams and representatives are leading sales by measuring close rates.
3. Cost of Acquisition:
- Using the data, be able to identify the cost of acquisition.
- This can be determined by dividing the marketing costs by the number of sales generated.
- Find out how much it costs to get a sale, which will help to get a firm grip on the ROI.
- Most digital marketing leaders work on cost per acquisition (CPA) models because they only pay for leads or sales based on a fixed amount or goal.
- It helps to push and drive targets to conversions or pre-set results.
4. Average order value:
- Looking at the increase in the number of orders, considerable rewards can be obtained by paying attention to the average ticket value.
- AOV is an important metric that helps marketers track profits and maintain revenue growth and profit reporting.
- A slight increase in the average order value can bring in thousands of dollars in the new revenue and make it much easier to improve the customer experience and provide sales opportunities.
5. Conversion rates by channel:
- Integrated digital marketing strategies are now essential for overall performance and revenue.
- CMOS is watching more and more and is being pressured to see which channels are working and which channels are the most expensive.
- As marketers, we want to know where our traffic is coming from.
- Whether it’s organic, paid, social media or other means, this information tells us where most of our customers are and/or where marketing efforts are creating the most sensation.
- Conversion rates are a better indicator of success and indicate where the best opportunities are.
- 75% of traffic comes from organic marketing and 25% from PPC.
- PPC conversion rates are twice as high as organic.
- Invest more in PPC. If PPC could increase traffic to match organic, it would have doubled the ROI.
- It also helps to understand how attribution reporting channels interact and which channels influence others with conversion lift.
6. Device exchange rates:
- Check exchange rates by channel, do the same by the device.
- If a device has poor conversion performance, it may be time to reinvest in that area, especially if increase in traffic for that device.
- Mobile is an excellent example of how device changes can take place and conversion rates vary depending on the device.
- This is especially true for e-commerce and retailers who are increasingly buying through mobile and tablet devices.
- How many visitors left the website from that particular landing page?
- Website analytics should provide a certain number of exits from each landing page.
- It can also give a percentage of the number of exits/number of page views received by the landing page.
- Use the highest number of departures or the highest exit rate to determine which landing pages require the conversion rate
- Additional improvement for optimization and viscosity.
- Blogs are a great way to showcase brand and thought-leadership and get traffic to the site.
- While blogs have infamous high bounce and exit rates, those ridiculously worthless numbers are not resigning.
- Use them to set goals for driving traffic from the blog to the main site.
- A small increase in blog click-throughs can provide a valuable new business with almost no additional marketing costs.
- LTV = Average revenue per user (ARPU) x 1 / churn
- Churn is a measure of how many customers stop using the product.
- It can be measured based on actual consumption or failure to restore (when the product was sold using the subscription model).
- Often evaluated for a specific period, there may be a monthly, quarterly or annual churn rate.
- Net Promoter Score (NPS) is a metric that indicates whether customers recommend a product or service to other individuals and companies.
- Based on a scale of 1-10, the scores provided are a good indicator of customer loyalty and satisfaction.
- Tracking promoters v Detractors (customers who are leaving or planning to leave) can help measure and improve customer service strategies and strategies.
- Find out how much time each person in the organization has invested in a particular project or campaign.
- If want to get the most out of every employee’s skill, then need to make sure they are working on projects that are worth their time.
- The increase in website traffic is a positive sign that digital marketing campaigns are working.
- Another way to determine the value of marketing campaigns is the traffic-to-lead ratio.
- This KPI simply measures the percentage of visitors who become leads.
- Measuring revenue over advertising costs can help determine how well advertising and paid campaigns are doing.
- This is very important when reviewing performance, comparing channel costs and making predictions for the future.
- As marketers, we are constantly challenged by comparisons with sales performance.
- Try to avoid these contradictions by measuring and attributing everything.
- It could be the whole campaign, marketing touch or assistance or property.
- The bottom line is to make sure the marketing and sales team has the synergy to track and report revenue.
- Agree on the terms and means of accountability for any marketing activity that affects or affects leads, opportunities and sales revenue.
- Measure the number of customers the business has retained.
- To calculate the customer retention rate over a given period of time, use the formula.
- Customer retention rate = ((E – N) / S) x 100
- For time duration analysis, use the number of customers who have expired with (E), the number of customers who need to be received during the period (N) and the number of customers who start the period with (S).
- As digital marketing grows and adoption grows, so does the pressure to deliver results.