As a Marketer, It can be difficult to determine what are the key marketing metrics you should be tracking for your business in the Digital Platform. Should it be Page-views? Click-through rate? Time on-site? Or something else.
Well, in this post, I’m talking about some of the key metrics, that you should consider while tracking your marketing activities.
1. Bounce Rate:
Your bounce rate is an important marketing metric because it tells you the percentage of visitors that viewed one page on your website then left (“bounced”) without taking any further action.
Bounce Rate is important for three main reasons:
- Someone that bounces from your site (obviously) didn’t convert. So when you stop a visitor from bouncing, you can also increase your conversion rate.
- Bounce Rate may be used as Google Ranking Factor, it is closely correlated to first page Google rankings.
- A high Bounce Rate lets you know that your site (or specific pages on your site) has issues with content, user experience, page layout
The height of your bounce rate and whether that’s a good or a bad thing really depends on the purpose of the page. If the purpose of the page is purely to inform, then a high bounce rate isn’t a bad thing.
If the purpose of a page is to actively engage with your site, then a high bounce rate is a bad thing.
This marketing metric can also reveal gaps in your website’s marketing funnel since visitors are not being directed deep enough to convert. This can impact other metrics like your conversion rate also.
If your website isn’t optimized properly for both technical and on-page SEO, you may be losing visitors due to long page-loading times, bad landing page, broken images, 404 errors, or published title tags and meta descriptions that don’t describe the page content accurately.
2. Conversion Rate:
Conversion rate is the percentage at which you turn visitors into buyers and paying customers.
Depending on your business goals, a “conversion” could be almost anything,.
But here are a few common types of conversions:
- Making a purchase
- Submitting a form (contact us form, lead gen form, etc)
- Calling your business
- Engaging with your online chat
- Signing up for a subscription (either paid or free—like a newsletter)
- Registering on the site
- Downloading something (software trial, eBook, mobile app, etc)
- Using something (new/advanced feature on your software or app, simply using your software/app for a certain amount of time)
- Upgrading their service
- Engaging with your site in some way (time on site, repeat visits, number of pages visited)
The easiest way to convert visitors is through content. And all content should prompt users in some way to become a buyer. To direct the visitor toward a conversion, all content needs to include a direct path to the conversion with clear Call To Actions (CTAs).
Calculating conversion is actually fairly easy. All you have to do is divide the number of conversions you get in a given time frame by the total number of people who visited your site or landing page and multiply it by 100%.
Conversion rate = (conversions / total visitors) * 100%
Here are a few different types of conversion rate you can use and ways you can use this data to examine performance:
- Overall conversion rate : How well does your website convert traffic from any source?
- Marketing channel conversion rate : Is Google Ads traffic or Facebook Ads traffic more likely to convert?
- Page-level conversion rate : Which of these pages is better at converting traffic?
- Campaign conversion rate Did my targeting changes improve anything?
- Individual ad conversion rate Do I need to change my ad copy? does this ad drive more qualified traffic?
- Keyword conversion rate : Which keywords deserve more budget?
If you have a high conversion rate on a particular piece of content, it can help guide your decision to create more topics in a similar vein or expand your efforts to promote the piece.
3. Qualified Leads:
A qualified lead is someone who may be interested in buying a product or service from your company.
These are promising leads who are curious and considering you, but they haven’t quite made the step into a sales conversation yet.
This is also one of the key marketing metrics because those qualified leads are more likely to be receptive to a sales pitch than a normal lead.
If you think about your own buyers’ journey, it would be pretty rare that you submit your real email address unless you’re open to starting a conversation.
A qualified lead is judged to be interested in your products and/or services, and you may offer a solution to whatever it is they need.
Examples of Marketing Qualified Lead actions:
- Downloading trial software or free e-book
- Using software demos
- Filling out online forms
- Submitting an email address for a newsletter or mailing list
- Favoriting items or adding items to a wish list
- Adding items to the shopping cart
- Repeating site visits or spending a lot of time on your site
- Clicking on an ad to find your site
- Contacting you to request more information
These represent some of the most common actions, but this is not meant to be a comprehensive list.
The best way to figure out what is and isn’t a qualified lead for your business depends on a whole lot of other information like lead scoring, analytics, product delivery, and demographics.
It’s a start, however, to finding sales-ready leads and weeding out those leads who are simply unlikely to ever commit to a sale.
There are different analytics tools, that can help us to attribute qualified leads with the source traffic
4. Return On Investment (ROI):
ROI is calculated using two primary metrics: the cost to do something, and the outcomes generated as a result.
The standard answer to “how to calculate ROI” is a formula:
(Attributable Sales Growth – Marketing Cost) / Marketing Cost = ROI
ROI is a marketing cost is any incremental cost incurred to execute that campaign (i.e. the variable costs). This includes:
- Pay-per-click spend
- Display ad clicks
- Media spend
- Content production costs
- Outside marketing and advertising agency fees
Your ROI tells you how much money you’ve spent on a marketing campaign versus how much revenue it’s brought in.
It is not easy to calculate revenue generated for all marketing activity. Certain tactics like social media, content marketing, video, and display ads for a targeted audience starts long before a purchase takes place.
Just because a marketing activity can’t be measured perfectly, it doesn’t mean it shouldn’t be considered.
Marketers who aren’t serious about tying their activity back to revenue are missing the bigger picture.
This marketing metric ensures that your marketing efforts are profitable in order to contribute to a company’s bottom line.
It also confirms you’re doing the right type of marketing and targeting the right people.
5. Word of Mouth:
Word of Mouth is a key marketing metric that helps your business determine how much exposure your brand is receiving.
The primary goal of looking into your word of mouth is to gain insight into the overall visibility of the brand.
Essentially, is it is free advertising triggered by customer experiences—and usually, something that goes beyond what they expected.
Word-of-mouth marketing can be encouraged through different publicity activities set up by companies, or by having opportunities to encourage consumer-to-consumer and consumer-to-marketer communications.
Understanding the level of exposure your brand has among competitors is an integral piece for building your marketing strategy.
If you’re looking to increase your word of mouth, you have to raise awareness of your business name and the product or services you provide. One way to do this is to create educational blog posts that provide value to your target market.
Well, these are all key marketing metrics, that should always keep track while doing any of your digital marketing activities.