Marketers are often influenced by “vanity” metrics and begin to lose sight on metrics that would really matter for their business. It is important for these business owners to learn how to ascertain which metrics are important for revenue generation and business growth.
Here are nine important digital marketing metrics and why they matter for your business.
1. Traffic Source
Knowing where your site traffic is coming from and which keywords brought them there can provide insight as to what you should focus more on for your digital marketing campaign. Search engines still prove to be the primary source of website traffic according to various studies, but you can also leverage other traffic sources that may prove beneficial for your business like social media sites.
2. Device Usage
A responsive website is imperative with the ever-changing marketplace, but knowing the percentage of users that come to your site from different devices, like cell phones, tablets, or desktops, will give you an additional insight. It allows you to optimize for the user, so you can properly track activity and create a unique experience. This metric can assist business owners in knowing how to structure site content for optimum engagement for both mobile and non-mobile site visitors.
3. Site Speed
When it comes to ranking a user’s experience, site speed is an important factor. If a page on your site does not load quickly enough, a user will likely leave and find another, faster-loading page from which to gather information. You want users to spend a long time on your site engaging with your content, not waiting for it to load.
4. Bounce Rate
It is not possible for all website traffic to your site to convert into a lead. A bounce rate is the percentage of single page sessions or “views” on your site. On some visits, users tend to leave or “bounce” as quickly as they arrive. This could be because they find your content irrelevant to their needs, among a number of other factors that are hard to measure. However, if you are noticing a high bounce rate, it may be worth looking at your site’s content and keywords to make sure you’re presenting useful and accurate information to searchers.
5. Clickthrough Rate (CTR)
Pay per click (PPC) campaigns are likely sources for targeted traffic. CTR is measured by calculating the number of clicks your PPC ads receive based on the total number of impressions served. The higher the CTR, the better your Quality Scores will be, allowing you to lower your PPC costs by paying less per click on search engine marketing platforms like Google AdWords.
6. Cost Per Click (CPC)
The Cost Per Click (CPC) defines how much you are going to pay the search engine marketing platform every time an internet user clicks on your PPC ad. This dollar value will be contingent upon your Quality Score and the standard prices search engines initially set how popular your chosen keyword or keyword phrases are (think of it like a silent bidding auction, except for keywords). By monitoring which keywords are working best versus the total cost, you can gauge how your marketing dollars are being spent.
7. Conversion Rate (CVR)
This is the percentage of users who take the desired action after visiting your site. Measuring how many site visitors convert into a lead or sale delineates your digital marketing success. Your goal can be converting site visits into sales or just to attain valuable information about your site visitors and potential customers. By monitoring your CVR you can gain insight as to what aspects of your marketing campaign are delivering the best results.
8. Cost Per Lead (CPL)
The success of a digital marketing campaign is contingent upon how well your website and content converts traffic into leads at a minimal cost. CPL is a metric that defines the lead conversion ratio of a particular campaign and corresponding cost, giving insights to the business owner or marketer on how profitable their campaign is.
9. Return On Investment (ROI)
This metric is measured by website traffic that converts into new paying customers, or leads. This metric will also help you identify which area in your digital marketing campaign is driving sales and revenue, and which areas need attention or improvement.
Digital marketing optimization is a data-driven process for sure. This list is just a start, but there are hundreds of other metrics out there. By now, you should have a better sense of the various metrics that are important to your business.