The number of metrics businesses can track is endless, but not all are crucial to driving growth. What metrics should you include in your digital marketing plan?
A business cannot improve what it doesn’t know needs to be improved – nor can it double down on what works unless it knows what’s working. Data reveals both to help a business grow and answers the most crucial questions.
It is more effective for companies to learn more about their current and future customers, and their marketing efforts will improve. To stimulate growth, what digital marketing metrics should businesses track?
Listed below are the top six metrics every business should optimize this year.
It’s only natural for marketers to measure engagement rates when they post on social media, send promotional emails, or display ads. Is there an Instagram post that receives more likes than another? Does one day get a higher response rate, open rate, or click rate than another? The more you know about your audience’s engagement preferences and habits, the better you can communicate with them.
Using this metric, you can determine when to send or post promotions and how often. Additionally, you will better understand what people are most and least interested in, which will help in content creation.
Flows of traffic
Your website visitors should be able to tell you where they are coming from on the topic. Search engines led them to your website. Did they visit it? Did you click on a link from a referral partner? Did you see the post on social media? Identifying how people are finding your website is equally important as knowing how many people visit it each month.
You can use these insights to optimize the most successful channels and improve those underperforming.
Whenever a visitor browses your website, they must discover how long they spend there. You can use this metric to determine if your content is attracting exemplary visitors and if they’re interested in your content.
When visitors only browse your website for a few seconds, it could mean they either couldn’t find what they were looking for or quickly realized they weren’t interested in your offer. Alternatively, if visitors stay on your website for several minutes, you might have content the market is interested in. For every business, having a low bounce rate and a high average on-site time is a dream scenario.
CAC (Customer Acquisition Cost)
Every customer comes with a cost – acquiring customers for free is a marketing fairytale. Throughout the buying journey, businesses need to measure the cost of acquiring customers.
This metric aims to understand whether or not your campaign was successful, if you spent your budget wisely and if the right people are being targeted.
CLV (Customer Lifetime Value)
Getting loyalty is hard, but measuring it is simple. The lifetime value of your customers is a crucial metric for considering how much to invest in marketing to them. This metric determines customers’ total financial value.
Marketers rarely consider segments within their customer databases – from repeat buyers to those who browse – when trying to reach them. You can use this metric to determine where to invest the most.
A brand’s equity
It will help if you become an expert on your audience to understand how they view you and your products. Nike, Coca-Cola, and Calvin Klein are household names, even if you don’t buy their products. Most people refer to tissues as Kleenex, regardless of whether they purchase the Kleenex brand. The value of your brand can be equal to your brand equity, depending on your customers.
Understanding your brand strength can help you determine whether your brand is more preferred by customers than your competitors. Since customers find your brand values, it will also affect their willingness to pay more for your products.
The cheapest Louis Vuitton bag was once listed for $790, but thousands of accessory companies make bags under $20. Your company’s brand equity may change over time, so this metric needs to be monitored regularly.
With so much data available, it’s easy to feel overwhelmed. Don’t focus on metrics that don’t matter to your business, but rather on those that do. Consider what you need to know about your brand and customers before deciding what to measure. You can then find the answers by looking at the data.
You know the Metrics, but who’s going to pull them?
Theory and knowledge are necessary, but let’s talk about being practical – you have many things on your hands and want to save time and hassle where possible.
If so, we invite you to enjoy Synapse’s premium services, including creating a proper measurement infrastructure, followed by detailed reports that’ll let you know the most vital metrics and results to measure your performance correctly.
If you’re ready to advance to the next level, we have the perfect team to make it happen. Leave your details below, and we’ll contact you ASAP.