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Measuring Your Online Marketing Success
Your business needs to track and measure online marketing metrics. Many SMEs don’t know what Return-On-Investment (ROI) they are getting from their online marketing.
But the beauty of digital marketing is that it’s measurable. Using free tools like Google Analytics you can track all sorts of online marketing metrics on your website, landing pages, and emails.
Metrics turn hunches & instinct into solid facts. Through the use of solid online marketing metrics, your digital marketing becomes more predictable. As management guru Peter Drucker once said:
“What gets measured, gets managed.”
The measurement and analysis of metrics is the foundation for optimizing your marketing funnel. This article will share the most important digital marketing metrics you need to measure to ensure your online success.
1) Total Visits
The first of the online marketing metrics we are looking at is total visits.
You should be measuring the total number of visitors your website and landing pages are receiving. This provides you with the ‘big picture’ and gives you an idea of how good your digital marketing is at generating traffic.
With healthy, consistent digital marketing you’d expect these numbers to be going up month by month.
2) Channel Specific Traffic
Segmenting your traffic based on its point of origin is another key metric you need to measure. You need to know how many visitors you’re receiving from each of your marketing channels, e.g. SEO, Facebook, Google AdWords, etc.
If you know which marketing channels are outperforming others, you’ll have a good idea of where to spend the majority of your time and effort.
3) Cost Per Lead
Once you know how much traffic you’re generating and where it comes from, you need to understand how much each lead costs you. Out of all the online marketing metrics we cover, your accountant will love this one the most.
To calculate this take your ad spend per channel and divide it by the number of leads you get from it, as shown below:
Cost Per Lead = Ad Spend / # of Leads
When you know how much money you’ve spent to attract new potential customers on a specific channel, you can identify which are the most powerful lead generators for your business.
Keep in mind, not all leads are equal. So you also need to track the quality of leads you get from each channel.
4) Conversion Rates
Next, you’ll want to measure your conversion rate. This could be closed sales or new leads, filled out contact forms, or email list sign-ups.
If you only track one of the online marketing metrics we list here, use this one.
You need to know how effective your sales funnel is at delivering the results your business is looking for.
All major analytics platform will track this for you automatically once they are set up and configured right.
The great thing about tracking your conversion rate is that it helps you fix and optimize your marketing funnel. If you’re getting a lot of traffic but nobody buys from your online store, you’ll want to fix that as soon as possible.
And if your website, landing pages, and emails aren’t converting, consider switching over to more engaging evergreen content.
The results your digital marketing is delivering are clear and easy to measure if you use the right metrics.
By using metrics you can make your ROI more predictable by finding channels, managing lead generation costs and optimizing your conversion rates.
To rephrase Peter Drucker, “What gets measured, gets results”.
What is your experience with online marketing metrics? Have you ever used them? Were they helpful? What are you measuring?
We’d love to hear what’s worked for you in the past or what you’re trying in the future, in the comments below.