When it comes to digital spending, analyzing the return on investment (ROI) can help determine the impact of marketing tactics. ROI evaluates the efficiency of an investment.
As a Digital Content and Marketing professional, I have worked with numerous clients with different priorities in terms of their goals and objectives, which inevitably impacts how they measure and evaluate their ROI. For example, one client might measure ROI simply based on number of sales, while others may factor in increased brand awareness. When a client is looking for brand awareness a digital marketer needs to analyze metrics such as brand impressions, brand recall, website traffic, customer feedback, and referral traffic. When it comes to ROI calculation, studying customer acquisition trends, research on top-of-mind awareness, and data on brand differentiation are tactics that can help paint a full picture.
Metrics and analytics are only valuable to clients when they are paired with analysis to demonstrate whether the metrics the digital marketer chose to evaluate the campaign were correct and whether the expenditure was a good ROI.
Whatever the client’s needs, it is necessary to analyze campaign data to inform the next step in their marketing strategy. For clients who are spending or willing to spend money on digital campaigns, data-driven reporting is the most effective way to measure a campaign’s success.
Digital Marketing Metrics are valuable key performance indicators (KPIs) to measure the success of an organization’s digital marketing efforts online. KPIs are quantifiable measures that display how effectively and efficiently a business is achieving its goals. The primary objective of using such metrics is to identify how existing and potential customers interact with the brand. Knowing how they interact enables the design of personalized campaigns for that target audience. This also means a client can spend resources on targeted campaigns instead of throwing money at initiatives that matter little to the brand.
Here are some essential Digital Marketing Metrics that should be in every digital marketer’s toolbox:
Search Engine Optimization (SEO) – SEO is a metric as well as a strategy for digital marketers to determine the keywords potential/existing customers are searching for online. SEO gives an idea of a website’s on-page optimization score, page speed score, domain and backlink authority. SEO also works as a strategy as it directly helps to drive organic traffic to the website. The better the brand is ranking on Google SERP, the better it is doing with SEO.
Website Traffic – Total website traffic helps to identify where customers are coming from. It can be through social media channels, referrals, or from organic search results. Knowing where customers are coming from allows the digital marketer to target the optimum means to increase website traffic. Moreover, measuring website traffic is another way to understand a business or a campaign’s overall digital presence, which can lead to goal conversions.
Conversions – One of the most effective metrics for any business that wants to convert mere website traffic into paying customers is the conversion metric. Goal conversions can happen through downloading a form or simply watching a video on the website. A good conversion rate indicates the success of the campaign/products and the brand’s overall digital marketing approach.
Bounce Rate – In simple language, bounce rate is the percentage of visitors who leave the website after viewing one page, rather than browsing other pages on the website. Bounce rate is an important metric because it shows how relevant, engaging, and informative the website is. The lower the bounce rate, the better it is. However, if the website is a single-page website or just a single blog, a high bounce rate may be expected as there are no other pages to navigate.
Click-Through Rate (CTR) – CTR is the metric that determines how many people are clicking on an ads vs the number of times the ad is shown on Google. It is a simple equation: Total clicks/Total impressions = CTR. It is another essential metric for every business as it demonstrates how well the ads and keywords are performing online. The more the brand is able to improve the CTR, the better it is for the brand in terms of generating more leads.
Cost Per Click (CPC) – All digital marketers have a keen eye on CPC. This metric shows the value of the marketers’ digital marketing efforts and tracks customers’ conscious choices to click on an ad. Like CTR, the equation is simple: Cost/Click. Moreover, a business spends money on CPC, not on impressions as CPC could lead to generating paying customers.
Pageviews – Last but not least, pageviews are a simple metric that every business should take into account. Through analytics, businesses can look at the number of pages a customer visits. This allows the business to strategically place important information on those pages.
The importance of digital metrics and the process of analyzing, synthesizing, and communicating data is not to be understated. Measuring a campaign’s success is as important as planning a go-to-market strategy.
Today’s customer journey is highly fragmented, especially in the digital world. Is the customer coming to the website from an organic search, or has the customer found the brand via social media or an ad on Google? Clients can get all the answers they need to identify their strongest tactics with the highest ROI by using digital marketing metrics and by understanding their target audience’s journey to finding them.
In a highly competitive world, evaluating the success of a campaign can provide valuable insights and a wealth of knowledge that leads to immediate and long-term marketing solutions.