When it comes to marketing metrics, there's always something new to track and some new information that you need to check up on. Deciding which marketing metrics are critical for your business may take more effort than you ever expected!
By knowing which marketing metrics are most critical for your business, you can substantially increase your ability to track, manage, and understand your marketing efforts. Ultimately, this means a higher return on your investment and considerably more effective marketing plans.
Depending on your industry, some metrics may be more important than others, but here I’ve included the most important metrics that are useful for ANY business. This list will be a great starting point for tracking and assessing your marketing efforts. As you learn more, you’ll figure out which metrics you really need to hone in on.
1. Conversion Rate
When visitors come to your website, how many of them actually complete your desired action? This might, for example, be the number of website visitors that make a purchase. On the other hand, if your goal is to gather information about your customers or make connections for your email list, your conversion rate might be the number of visitors who sign up for more information about your website.
You might want them to register for the site, put in a call to your business, or download a free trial. Whatever action you would like your customers to complete, check it against your website visitors to determine your conversion rates. Make sure to pay particular attention to your conversion rates any time you make changes to your website. In some cases, even small changes can create a big impact on your conversion rates.
2. Return on Investment (ROI)
Marketing is often a big expense for your business. The return on your investment is the income you generate as a result of your marketing efforts. Compare the return on your investment to the amount you spent on a given campaign.
Are you getting the return you expect on your marketing? Check the return on your investment near the beginning and at the end of each new campaign to see how your return on investment has progressed. Ideally, it is good practice to check this metric throughout the campaign as well when you’re monitoring a longer campaign.
In many cases, you'll find that specific types of campaigns don't have as high of a return for your company as others. For example, social media campaigns may have a higher return on your investment because of their low initial cost and the targeting options for your audiences.
3. Customer Acquisition Cost
How much does it cost to acquire a new customer? Divide the amount you've spent on marketing over a specific period of time by the number of new customers you acquired during that period. This will tell you approximately how much it costs to acquire each new customer – and give you a better idea of what alterations you need to make to your campaign in the future. Compare customer acquisition cost with their average lifetime value to get a better understanding of how much profit you're making from your advertising efforts.
4. Email Open, Clickthrough, and Bounce Rates
When you send out an email, how many of your customers are actually opening it? How many people click through to check out your website thanks to the instructions in your email? How many customers immediately close out of the email and don't take further action? Check your email metrics after each email that you send out. Conduct tests to see how you can better increase email open rates: is there a certain type of subject line that is more likely to appeal to your customers, for example?
Use these metrics to find out which calls to action work the best to get customers to click through and which cause your bounce rates to skyrocket. The open, clickthrough, and bounce rates will show you exactly what does and doesn’t work for your marketing so you can refine it and create more relevant content!
5. Website Traffic and Landing Page Conversions
Landing pages are pages designed to get a user to accomplish a specific action. Usually, customers arrive at your landing pages from a specific place, and they come with a specific idea in mind. How often do customers who arrive at your landing pages complete the desired actions? Landing page conversions track how many people completed your marketing funnel and went through the complete customer journey.
If people are struggling to complete specific actions on your landing page, you may need to make adjustments to your landing page: removing unnecessary links, for example. I also want to stress the importance of consistency in design, copy, and concept for landing pages. If the landing page does not perfectly align with previous ads and the customer’s journey, then customers are likely to exit the page.
6. Leads vs. Qualified Leads
When you connect with a lead, is it more likely to be a qualified lead or one that is not interested in your products or services? Qualified leads have already been vetted by your sales team or narrowed down through targeted advertising. They have the qualifications that show they are likely to make a purchase from your business.
If you have a high percentage of qualified leads, your sales team is on the right track! On the other hand, if you have a low percentage of qualified leads, you may need to create buyer personas and make other changes to help you more effectively reach the right customers for your business.
7. New vs. Returning Customers
When a customer makes a purchase through your business, are they likely to bring their future purchase needs back to your business, or do your customers often fall away? If you have a high percentage of new customers, but few returning customers, you may need to make changes to your customer service process. If, on the other hand, you have a high percentage of returning customers, but few new ones, it may be time to take marketing action and bring in new customers!
These metrics are some of the most crucial when it comes to determining your marketing success. You want to be sure that you're marketing to the right customers, convincing them to take the actions you have in mind, and keeping those customers as a successful part of your business. These key metrics will help you determine the success of your website, email campaigns, social media, SEO, and more!
Do you need help tracking the key marketing metrics for your business or making changes to your marketing plan? If so, contact us today to learn more about how we can help.