Over the past few years, the transformation of the digital space has accelerated beyond what was expected. Many companies are venturing into digital marketing and without proper guidance, you may find yourself investing and not knowing exactly the return of your investment. At Charleson, the leading marketing agency in Nairobi, we have dipped our toes into Google Analytics and know the amount of data can be overwhelming. In order to measure the ROI of your digital marketing efforts, it’s crucial to identify key metrics you want to track. In this article, you will find 19 metrics that will help you to successfully measure your efforts and offer advice on where you need to make adjustments.
1. Cost per lead
It is crucial to know the amount you are paying per lead. Notably, if the cost of each lead is more than what you produce by closing leads, that indicates a backward return on investment. Knowing the cost per lead helps you know the performance of your marketing efforts. It also gives you insight into making further strategic and budget decisions. Also knowing your closing rates gives you insight into how the marketing team is closing leads into sales.
2. Lead Close Rate
Notably, this helps you to track the leads that are being generated. Notably, this will help ensure your digital marketing efforts are delivering leads profitably. This information is also helpful to use as a control against new digital marketing efforts.
3. Cost per acquisition
You need to divide your marketing costs by the number of sales generated. By knowing the cost of acquiring a sale, you will have a firm grasp on your ROI. Many firms operate on Cost Per Acquisition models as they only pay for sales or leads based on the goal set. Notably, this helps drive goals to conversions
4. Average Order Value
It is important to pay attention to the value of the average ticket as this helps marketers track the profits and manage revenue growth and profit reporting. A slight increase in average order value can bring in thousands of dollars of new revenue and can often be as simple as improving user experience and providing up-sell opportunities.
5. Conversion Rates By Channel
Conversion rate is one of the most crucial marketing metrics. Foremost, as an investor you definitely want to know the source of your traffic, whether it’s paid, organic or other avenues. Notably, this information lets us know where our customers are or the place where the marketing efforts are bringing more buzz. Conversion rates are the best indicators of success and let you know where the best opportunity lies. We calculate the conversion rate by dividing the number of leads from a marketing channel by the number of visitors sent via that channel.
6. Exist Rate
It is crucial to know the number of visitors leaving your site from a specific landing page. Your website analytics gives you a specific number of exits from every landing page. You also learn of the % is the number of exits/number of pageviews the landing page received. In this case, use the highest number of exits or the highest rate percentage to determine the landing pages that need improvement to retain consumers.
Conclusion
No one wants to invest in digital marketing without assurance of ROI. As marketers, we know what our clients ask at the end of the year is “What is the ROI?” As leading digital marketers, we understand the pressure to deliver results. We utilize the given digital metrics identified in this article and let the results show you the ROI. You definitely need a marketing agency that shows
