15 Digital Marketing ROI Metrics You Need To Know


digital marketing And its corresponding metrics and ROI of success are evolving at a break-neck pace.

In the past few years (and especially because of COVID), change to digital It has accelerated several years ahead of what was expected.

Any marketer who’s ever dipped his toe in Google Analytics The pool can attest that the sheer amount of data available can be overwhelming.

In order to reduce the noise and accurately measure the ROI of your digital marketing efforts, it is important that you have identified the key metrics you want to track.

In this article, you’ll find 15 essential metrics that will help you measure your digital marketing’s ROI, tell you whether your efforts have been successful, and tell you when adjustments may be needed.

Which Metrics Help You Measure Digital Marketing ROI?

  1. Cost Per Lead (CPL).
  2. Lead Close Rate.
  3. Cost per acquisition (CPA).
  4. Average Order Value (AOV).
  5. Conversion rate by channel.
  6. Conversion rates by device.
  7. exit rate.
  8. Blog click-through rates.
  9. Customer Lifetime Value (CLV).
  10. Net Promoter Score (NPS).
  11. Time invested in the project/campaign vs returns.
  12. Traffic to Lead Ratio.
  13. return on advertising spend (ROAS).
  14. total revenue.
  15. customer retention rate.

1. Cost Per Lead

If your website is collecting clueYou need to know how much you are paying for each lead.

If the cost of each lead is greater than what the closing lead costs you to produce, this indicates a backward return on investment.

Knowing your cost per lead lets you know how well your marketing efforts are performing and gives you the insight you’ll need to make further strategic and budgeting decisions.

2. Lead Close Rate

how do you track yourself the lead stops,

Too often, it is happening offline which means that the data is not being integrated into the analytics or the online data you are collecting.

That’s fine, but you need to make sure you keep an eye on your lead close rate so you can check that leads are being generated.

This will help ensure that your digital marketing efforts are profitably providing leads.

This information is also helpful to use as a form of control against new digital marketing efforts.

If you suddenly get an influx of new leads but they close at a lower rate, you may need to adjust your targeting efforts.

Measuring close rates also gives you an idea of ​​how sales teams and reps are closing leads in sales.

3. Cost Per Acquisition

Using the data given above, you will now be able to find out your cost per receipt.

This can be easily figured out by dividing your marketing costs by the number of sales generated.

Now you know how much it costs to acquire sales, which will help you get a firm grip on your ROI.

Many digital marketing leaders operate on a cost per acquisition (CPA) model because they only pay for leads or sales based on a set amount or goal.

It helps to further and enhance the goals for conversions or pre-defined results.

4. Average Order Value

While you may want to see your order count increase, paying attention to the average ticket price can reap significant rewards.

AOV is a Required Metrics Which can help marketers keep track of profits and manage revenue growth and profit reporting.

A modest increase in average order value can bring in thousands of dollars in new revenue and can often be as simple as improving the user experience and providing up-sell opportunities.

5. Conversion Rates by Channel

Integrated digital marketing strategies are now essential for overall performance and revenue.

CMOs are increasingly watching and under pressure to see which channels are performing and which channels are most cost-effective.

As marketers, we all like to know where our traffic is coming from.

Whether it’s organic, paid, social media, or other wayThis information tells us where most of our customers are and/or where marketing efforts are generating the most buzz.

But this is not the whole story.

Conversion rates can be a better indicator of success and tell you where the best opportunities lie.

Let’s say 75% of your traffic comes from organic marketing and 25% from PPC. But lo and behold, your PPC conversion rate is double that of organic.

What you learn from this is simple: Invest more in PPC. If you can increase PPC traffic to match organic, you have doubled your ROI.

15 Digital Marketing ROI Metrics You Need to KnowScreenshot from Google Analytics, January 2022

Attribution reporting also helps you understand how channels interact and which channels can influence others conversion lift,

6. Conversion Rates by Device

Like checking conversion rates by channel, you want to do the same by device.

If a device has low conversion performance, it may be time for you to reinvest in that area, especially if you see increasing traffic for that device.

Mobile is a classic example of how devices change, and depending on the device, conversion rates will vary.

This is especially true for marketers in e-commerce and retail, where more and more are shopping via mobile and tablet devices.

7. Exit Rate

How many visitors leave your website from a specific landing page?

Your website analytics should provide you with a specific number of exits from each of your landing pages.

It may also give a percentage which is the number of exits/pageviews the landing page received.

Use the highest number of exits or the highest exit rate percentage to determine which landing pages need additional improvements for conversion rate optimization and stickiness.

8. Blog Click-Through Rates

Blogs are a great way to showcase your brand and thought-leadership and drive traffic to your site, but what are you doing with that traffic,

While blogs have notoriously high bounce and exit rates, that doesn’t mean you have to resign yourself to those ridiculously priceless numbers.

Instead, use them to set goals to drive traffic from your blog to your main site.

A small increase in blog click-throughs can provide valuable new business for almost no additional marketing cost.

9. Customer Lifetime Value

You can’t truly understand the ROI of your marketing efforts until you have a good idea of ​​what the average customer will spend over their lifetime.

Let’s say, for example, that it costs you $500 to bring in a new sale or client. But they only buy $500.

Well, this seems like a net loss when you consider the cost of everything beyond your marketing investment.

But what if you know that that customer will spend $500 every six months for the next five years.

Average lifetime value That customer has $5,000.

Now, $500 doesn’t sound so bad to get that customer, eh?

LTV = Average Revenue Per User (ARPU) x 1/Churn

That doesn’t mean you want to take a loss on every first-time customer, but if the initial investment yields huge long-term returns, you can easily chalk that first sale off as a marketing expense. Let us know what the benefits are.

10. NPS

Net Promoter Score (NPS) Is a metric where customers indicate whether they would recommend a product or service to other people and companies.

net Promoter ScoreScreenshot from SurveyMonkey, August 2021

Points given on a scale of 1-10 are a good indicator of customer loyalty and satisfaction.

NPS = % promoters v % detractors

Tracking promoters versus opponents (customers who have left or are looking to leave) helps you measure and improve customer service strategies and tactics.

11. Return on time invested in the project/campaign vs. investment

Do you know how much time each person in your organization has spent on a particular project or campaign?

If you want to make the most of each employee’s expertise, you need to make sure they are working on projects that are worth their time.

For example, if you had programmers that range from entrants to experts, who would you like to work on the projects that generate the most revenue in your organization?

Expert level programmers, of course.

Once you know the value of your projects, you can then deliver the right projects to the right people.

12. Traffic to Lead Ratio

An increase in website traffic is a positive sign that your digital marketing campaigns are working. But do those results really affect your company’s bottom line?

Another way to determine the value of your marketing campaigns is the traffic-to-lead ratio. This KPI only measures the percentage of visitors who convert to leads.

For example, let’s say your website gets 5,000 visitors this month. 500 visitors converted into leads. For this month, you will have a 10:1 traffic to lead ratio or a visitor to lead conversion rate of 10%.

13. Roa

Measuring return on ad spend helps identify how well your advertising and paid campaigns are performing.

Digital marketers are able to see that they spent X and received Y.

This is especially important when reviewing performance, comparing channel spend, and making forecasts for the future.

Most of the marketers work on the rule that you should get 3X return on your investment.

14. Total Revenue

As marketers, we are constantly challenged to compare sales performance.

  • When it comes to sales performance, sales are the star, and little to mention marketing.
  • When sales aren’t good, suddenly marketing gets more mention.

Try to avoid these conflicts by measuring and giving credit for everything you do.

This can be an entire campaign, a marketing touch or support, or an asset.

Make sure your marketing and sales teams have synergies in tracking and reporting lower-level revenue.

Agree on rules and accountability paths on leads, opportunities, and any marketing activity that impacts or impacts sales revenue.

15. Customer Retention Rate

Do you know how to measure the number of customers your business retains?

To calculate your customer retention rate over a specific time period, use the following formula.

Customer retention rate = ((E – N) / s) x 100

For the time period you are analyzing, you will use the number of customers with whom you ended period (e), the number of customers you acquired during period (n), and the number of customers you have ( The number of customers starting the period with s) will be used. ,

Let’s say you started the quarter with 200 customers. During the quarter, you gained 35 customers and lost five.

Your formula will look like this:

97.5% = ((230 – 35) / 200) x 100

Conclusion

Regardless of your industry and business type, “What is ROI?” This is the question all CEOs and CMOs will be asking this year.

As digital marketing grows and adoption grows, so does the pressure to deliver results.

Use the digital metrics identified in this article and let the data tell your ROI story.

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Featured Image: Grayscale Studio / Shutterstock





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