There is no doubt that this is the age of digital marketing and social media; the internet has changed the face of businesses around the world. The metrics and measurable data are available for businesses to analyze in the real time, to achieve success in the fierce competition, the need to measure this data are immense for the business managers. The business landscape is rapidly and continuously changing in the 21st century, the companies who realize the need to measure the success and efficiency of digital marketing are the ones can thrive and flourish in the long run.
The digital marketing tools are available easily for everyone from a college freshman to business managers which become the means to measure the success of the business. Let us explore how business owners and social media strategists can use these important metrics to focus on their digital marketing campaigns.
The Type of Metric
There is immense data available these days on the internet, this easily accessible data is useful but it is important to choose the data of right type. This can be a daunting task for the digital marketing managers there is a possibility that they might choose and monitor the metrics that pose no significance for the success and growth of the business. Earning revenue and profits is the main target of business marketers, marketers may shift their attention from the good metrics and spend more time focusing on vanity metrics that do not matter much for the business. If the customers are not happy with the website looks or content, they are less likely to become long term customers which results in the poor sales of business.
Vanity metrics are those metrics that are referred to as the “Facebook Likes” or the “Youtube Views” these metrics are nice to have but if these metrics are not good enough to convert into profits for the business, they are useless for digital marketers. In other words, the useless metrics will not have much impact on the business, and they will be a waste of time and resources for the business. It is, therefore, most important for the digital marketing managers and business owners to realize and identify which metrics would be most important and influential for the growth of the business.
There are ten parameters that are considered the most important for the guaranteed success of social media marketing campaign. The metrics we are discussing here are split into three groups; it will enable the marketing managers and business owners to streamline a digital marketing campaign to flow smoothly. These groups are traffic generation, conversion, and revenue.
During the traffic generation stage of the business, the traffic metrics are those which are primarily measured by the business which is important for the search engine optimization activities SEO and PPC marketing techniques.
- Overall Site Traffic
One way to find out whether your company is heading into a good direction regarding the planning and observing the digital marketing metrics is to observe the significant changes in the flow of traffic. Your website can give you that insight while measuring the site traffic; it is important for the marketers not to just focus on the number of hits or page views only, they should also observe that how many unique visitors their website is getting per week or in a month. If the site is receiving unique visitors every week or month the chances are your business will get more potential customers in the future.
- Traffic Sources
It is immensely important to know where the traffic to your site is coming from and what the keywords that are bringing that traffic in. Digital marketers can use the keywords or phrases that increase the traffic to your website through the search engines like Google or Yahoo. A huge source of traffic is still the search engine according to the research, but it is also the good idea to leverage on other sources of traffic for the ultimate benefit of your business.
- Mobile Traffic
The strongest digital marketing arena these days is mobile internet. The mobile internet is dominating the scene these days with more and more people around the world accessing the internet through their smart devices and gadgets. Therefore this arena deserves more attention by the digital marketers who can seriously open many new doors for the business to generate revenue and generate traffic to their website. This metric has the potential to provide the details on how it can be made possible for the business owners to plan and structure effectively their content.
- CTR Click Through Rate
For the targeted traffic, Pay Per Click PPC is a great source for targeted traffic. It can be effectively measured by finding out the number of clicks PPC advertisements receive. The managers can observe the total number of impressions to get a better idea of their website performance; a feeling is increased each time a website is viewed by a visitor across the globe. CTR Click Through Rates is measure the number of people clicking on your ads on the website. Therefore the number of CTR must be high which is better for the quality of your scores which will enable you to lower your pay per click cost. The companies can also receive pricing discounts from platforms like Google Adwords which is the most popular search engine marketing platform.
- Cost Per Click CPC
The search engine marketing is not free, businesses have to pay to the search engine marketing platforms. How much you are going to pay them depends on the number of time internet user’s click on your PPC advertisement. This value also depends on the popularity of your selected keyword phrase or keyword; the Click Through Rates also influence your quality scores. The managers must set a budget for the CPC keywords or keyword phrases.
The way to grow sales outright through the digital marketing is to convert the website traffic into business profits which are the primary objective or goal your digital marketing campaign. At the core of your digital marketing strategy, this goal works well if the following metrics are given importance.
- Conversion Rate CVR
A most tangible and valuable metric is to measure that how many website visitors are converting into the sales leads which define the level of success of your digital marketing. The goal of every business is to search for the valuable information about their website visitors and how they can turn them into customers. Converting website visits into sales is not an easy job for the digital marketing department, great insight however can be obtained by monitoring your metrics like conversion rates CVR which will help you understand the particular aspects of the digital marketing campaign to deliver outstanding results.
- CPL Cost Per Lead
Your marketing campaign can also become successful by finding out how well your website writer can type content which convert website traffic into customer leads or paying customers at minimum costs. A useful metric is CPL which provides valuable details and insights to the digital marketers or business owners to find out the profitability of their campaign.
- Bounce Rate
It is not possible to convert all the traffic on your website into useful sales leads, but some of the website visits can be very beneficial. Most of the visitors on the website usually bounce or go away after spending a few seconds on the website if they do not find it interesting. The problem is that your website content is not relevant to their needs, therefore exploring in detail how many visitors bounced back give insights into the bounce rate that can help managers to improve the content on your website.
- Average Page Views Per Visit
The most important component of your digital marketing campaign is to drive good traffic to the website. But the journey does not end here, entailing the visitors to stay longer on the website is the challenge for the digital marketing team; if they can easily digest your content, they have a better chance to stay longer on your website. The most page views generated for each visit guarantees the chances for better engagement with the website visitors. This will help them to understand the importance of landing you your page and convert those leads into paying customers.
- Average Cost Per Page View
The managers and owners are investing hugely into the marketing campaigns of business in the 21st century more than ever. If average cost per page view is known to the marketers, it becomes possible for them to control the PPC. This helps them to know the details of the amount of revenue business can generate from a particular page.
- Average Time on Website
It is possible for digital marketers to engage well with the targeting website visitors by knowing how long their average time to your website during each visit is. The relevant content has more chances to drive the positive results from the site visitors. It helps the owners to gain the respect and trust of the visitors. The level of trust grows which finally converts the visitors into customers.
- Rate of Return Visitors
The traffic generated and attracted by the website is the most important metric as we explored, but it is not the only metric for generating revenues and success. The rate of return visitors is also crucial for the business owners to find out how much visitors like to come back to the site. This helps them to showcase their content according to customer needs; the Rate of Return Visitors metric can provide valuable insight to managers on how they can improve their content further to entice website those visitors who are still not convinced about making a purchase.
By using the Revenue Metrics, the process of digital marketing becomes more valuable which determines the success of digital marketing campaign. This helps managers to know that whether a particular digital marketing campaign is profitable for the business or not it helps them to make important decisions about making various adjustments to improve the website content for the higher engagement of visitors. This ultimately leads to higher conversion rates and better sales at the end of the day.
- ROI Return on Investment
The website traffic is a great tool to measure the Return on Investment ROI; the website traffic converts the visitors to paying customers. This metric also helps to identify which area in the digital marketing campaign is driving more sales for the business and which areas still need improvement.
- CAC Cost To Acquire a Customer
The new paying customers help to determine the return on investment in a given period. This cost of acquiring and retaining the new customers who can turn the business into a profitable one is defined by getting the total of your advertising and marketing cost divided by the number of new paying customers generated during the same period. This calculation need not be perfect, but CAC can provide you with valuable insights on how successful and effective your digital marketing campaign can become.
Finally each of these metrics is important, and the focus must be on using these tools with the best possible way to ensure the business success. The data extracted from these metrics can make your digital marketing campaign highly effective by providing you with an opportunity to pinpoint those components in your overall strategy which are not very effective. The owners can easily find out by looking at this data which components of marketing strategy are working and which are not, which allows the management to make the necessary improvements or modifications to establish a profitable business.