WHAT are marketing metrics? And, WHY measure them?
As marketers, we work tirelessly to move the needle on what often seems like a laundry list of metrics. We look at website visits, conversion rates, engagement on social platforms… the list goes on and on.
Marketing metrics, or key performance indicators (KPIs), evaluate the performance of marketing campaigns. They are used to measure how much revenue you get back on each dollar spent on advertising. Key metrics need to be set at the beginning of each project. This will ensure your team is working towards the same set of goals.
WHICH MARKETING METRICS SHOULD I MEASURE?
It has been said that a “website without traffic is like the moon landing without TV coverage”. Therefore, it doesn’t matter how impressive your website is. If no one sees, you may as well not have one. Measuring how many visitors you are attracting to your website and knowing where they come from is key. Also knowing which pages they are viewing give you great insight into the effectiveness of your marketing. Because of such metrics you will get an idea of what tools are needed to replicate successful results and campaigns.
Total conversions are your victories! Whether it’s prompting a customer to fill out a contact form or purchase a product, measuring your wins will help you focus on the long-term marketing strategies and continue driving revenue. If you’re attracting low conversion numbers, never fear, it could be a result of poor web design or disinterested visitors. You can easily fix and turn around this around, with all of the new information at your fingertips.
Customer Acquisition Costs
Customer Acquisition Costs are the total average costs you’re spending on acquiring new customers. To calculate this figure, take your total sales and marketing spend (including salaries, commissions, bonuses and overheads) for a specific time period (a month, quarter or year) and divide by the number of new customers for that time period.
Your website bounce rate counts the number of people viewing one page and then leaving to another site. This can happen when someone finds your site through a Google search, social media post or web link and don’t visit any other pages before ‘clicking out’.
New vs. returning customers
The measurement of customers tells you whether your site is sticky enough to lure customers back in for repeat business. For example, if you launch an email marketing campaign to your database, you might see a surge in returning visitors to your website, which reveals your email campaign was a success.
Lead to close ratio
Put simply, how many customers are you converting to sales? Once you have attracted new or returning customers, it’s important to know how many of those leads your sales team is able to close – calculating at both the sales qualified lead conversion rate and sales accepted lead conversion rate. Sales qualified leads are considered to be ‘sales ready’, in comparison to sales accepted leads, which are considered to be opportunities.
WHY MEASURE MARKETING METRICS?
Measuring your metrics displays the ROI of your marketing efforts. Some business owners consider marketing to be an unnecessary expense. and something that is invested in only when the budget is flexible enough to accommodate it. However, by producing marketing metrics you can easily provide tangible results that clearly display the need for financial investment in marketing.
The key is to choose the right metrics that show the right results to move your brand in the right direction.
Has this whet your appetite? Do you want to know even more about marketing metrics? Well we’ve compiled our favourite shortcuts in our FREE Foxy Marketing Metrics Guide.