“We tend to overvalue the things we can measure and undervalue the things we cannot.” John Hayes
Marketing is a superstition without measurement. The use of metrics makes digital marketing a science. Spending money on marketing campaign may sound superfluous to some business owners. Unpredictability is the key element that makes people reluctant to invest in marketing their business.
Metrics provide the insight to overcome the factor of unpredictability. They allow you to measure the real-time results of your online marketing efforts. There are hundreds of metrics to measure your marketing outcomes. As a digital marketer or a business owner, make sure to familiarize yourself with relevant marketing metrics. Let’s address 5 of the important questions marketing metrics can solve.
(1) How effective are you at converting website visitors into customers?
The Online Conversion Metric clearly examines how effective your online marketing strategy is at converting visitors into paying customers. In other words, it measures the profitability of your marketing efforts. Marketers always see conversions as a quantifiable victory.
The definition of conversion may vary from website to website. It is important for you to define what conversion means to your business. It could be a purchase, a signup, a submission of an email address or filling out a form.
(2) How good is your website at building an audience?
The Returning Visitor Metric allows you to examine how effective you are at retaining an audience. It is the best tool to measure how loyal your customers or visitors are. Off course, returning visitors are the best visitors.
If you know the number of return visitors and the number of total unique visitors to your website, you can calculate Returning Visitor Rate (RVR). The purpose of using these metrics is to understand what strategy would work for you.
(3) How to measure your sales success?
Lead To Close Ratio is an easy-to-define metric that measures your sales success. If you divide the total number of sales by the total number of leads, you will get a ratio that demonstrates your sales success .
(4) How to measure keyword rankings?
The Keyword Ranking Performance metric is used to measure keyword ranking which is an important indicator to understand how good your SEO efforts are at driving organic search traffic to your website. It is a valuable indicator that gives you information about your ability to enhance rank on keywords. It is not recommended to use a stagnant keyword list as it neglects new developments.
(5) How to project return on investment?
Return on investment (ROI) is an immensely important factor in any marketing campaign. It measures how much revenue you earn from a marketing campaign and compare it with the cost of running that campaign. A positive ROI suggests that your marketing strategy is effective. If not, you need to make adjustments to your marketing strategy.
There are a number of other metrics which are used to measure a number of other online marketing activities. All you have to do is to figure out what kind of metrics your website needs. Get an accurate and complete picture of your digital marketing campaigns. This will allow you to refine your marketing strategy with the passage of time.