Let’s explore everything that you need to know about marketing metrics.
Having a solid marketing strategy is a key pillar of running a successful business. After all, you can’t expect to generate large amounts of revenue if your audience doesn’t know about your company.
Before you create a comprehensive marketing strategy, though, there are certain marketing metrics that you need to understand.
Where Can I Find My Marketing Metrics?
This will depend on the type of platform that you’re using. For example, you can easily find certain marketing metrics (such as traffic) by navigating to the appropriate section of your WordPress interface. The same can be said about similar platforms, such as Google Analytics.
But, there are tools that exist that can help compile your metrics into a centralized location so that you can view all of them at once. This provides an additional level of convenience that helps you develop a better understanding of your performance.
What Are Some of the Most Important Ones?
Regardless of how you locate your marketing metrics, there are a few that are particularly crucial to know. This will help you both keep track of your company’s performance and help you make necessary adjustments over time.
Listed below are a few of the most notable.
Return on Investment (ROI)
This marketing metric refers to the amount of revenue that you’re able to generate from a specific marketing action. In general, this refers to an entire marketing campaign. You’ll often hear people talk about the ROI of social media marketing, for example.
As you might expect, maximizing your ROI is your primary goal. But, you can also use ROI to help determine whether or not a particular strategy is worth the effort.
To elaborate, let’s assume that email marketing has a 500% ROI for your company. Let’s also assume that, in general, you’d like to see a 200% ROI.
In this case, email marketing is something your business should focus on. If social media marketing only has a 120% ROI, your time and resources are best spent elsewhere.
Conversion Rate
A conversion occurs when your users take a specified action. This could be making a purchase, signing up for an email newsletter, or downloading a free resource for your website.
The conversion rate is the percentage of users who take that action out of the total number of people who reached that page. So, if 500,000 people reach your landing page on your website but only 5000 sign up, that’s a conversion rate of 0.01%.
Although this rate is particularly low, it’s still a total of 5000 sign-ups, which may or may not be a sufficient number for your business.
Customer Lifetime Value (LTV)
The average amount of money that a single customer is likely to spend at your company is known as their lifetime value. This will heavily depend on the product or service that you offer.
Companies that offer high-end products for a high price might have a higher customer LTV than a business that offers a cheap, ongoing service subscription.
Regardless of what industry your company operates in, understanding this metric will help you determine your return on investment from your marketing efforts. For instance, let’s assume that the LTV of a clothing brand is $150.
This means that every person who voluntarily signs up to receive email updates about promotional offers is likely to spend approximately $150 total on that brand over time.
Traffic Sources
Understanding the sources of your website traffic is essential to properly configure your marketing campaigns. It can also provide insight into how a particular campaign is performing.
If you just started an email campaign, for instance, you might experience an uptick in overall site traffic. But, let’s also assume that you launched a social media campaign at the same time.
Without being able to differentiate between these two traffic sources, you won’t be able to tell how effective each method is. There’s a chance that 90% of your traffic comes from email marketing and only 10% comes from social media.
From here, you can double down on the most effective method.
Average Time on Page
If your users aren’t spending enough time on the pages of your site, you need to take a step back and analyze why this might be occurring.
This issue could stem from your site’s overall design, loading speeds, or even the promotional offer that you’re presenting.
To help figure this out, take a look at the pages where users spend the most time. Compare the design and layout to the pages where users spend the least time. From here, you can determine what factors might be at play so you can optimize the average time on pages across your entire site.
Bounce Rate
Where a user immediately exits your website after reaching out, this will increase a marketing metric known as your bounce rate.
Unfortunately, having a high bounce rate can actually cause Google to lower your site’s ranking. This is due to Google’s algorithm assuming that your site is either irrelevant or has low-quality content.
As with the average time your consumers spend on each page, your bounce rate is affected by a handful of different factors. One of the most common is loading speed.
If your website takes more than four or five seconds to load a page, there’s a strong chance that your users will navigate away and never return. The same can be said about a website that is not properly formatted for a mobile device.
In general, though, users will leave your site if they are having a poor experience while navigating through it. So, it’s highly worth testing different types of formatting, images, etc. to assist you in minimizing this metric.
Understanding Marketing Metrics Will Set You up for Success
And the above information will make the process far smoother. Then, you can ensure that you have a comprehensive knowledge of key marketing metrics and are able to capitalize on them.
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