Understanding digital marketing metrics is essential in online marketing. It’s not enough to keep deploying different strategies to be more popular online. It also helps to track if these efforts take the business in the right direction. The experts from digital marketing agency New York City understand these metrics well. They know that tracking the progress is vital to success.
Here are ten of the recommended digital marketing metrics to measure.
- Leads. The ultimate goal of online marketing is to increase leads. After visiting the page, break your echo chamber, users might turn into paying customers. There are two types of leads- marketing qualified lead and sales qualified lead. The first one refers to the number of people who decided to patronize the brand while the other refers to those who have a good chance of becoming customers.
- Return of marketing investment. This metric refers to the ratio of cost versus returns. If the business spent money to advertise online, it should lead to an increase in profit. It’s vital to track this metric to determine if the company spends its resources in the right places.
- Referral traffic. This metric refers to the number of people who decided to visit the page through other links and not through search engines. It’s crucial to know the referral traffic rate to decide which platform to focus on when advertising. For instance, if guest blogging on a website leads to an increase in traffic, it’s worth focusing the attention on that website by creating more content.
- Bounce rate. It refers to the number of people who decided to visit the site and leave. If they found the page but didn’t have a reason to stay, something must be wrong. It could be the content quality. The website might not contain information they want to know. Worse, the website is targeted to the wrong audiences. Understanding bounce rate helps in improving the website based on people’s interests.
- Web traffic. While it’s not definitive evidence of success, it’s still crucial to understand web traffic. It tells if more people saw the website and found it interesting. Google Analytics also provides information about where the traffic came m and who the visitors were. Deciding the next steps in advertising is easier after analyzing web traffic.
- Reviews and testimonials. When people leave more reviews and testimonials, it’s a good sign. It shows that they like the products and services. They went out of their way to say something positive about it. Not everyone will do it, even those who prefer the brand. Conversely, if the reviews for it’s reputation management software are generally negative, it also helps the company determine the right response. Understanding these concerns and responding to them will help make the customers feel good.
- Customer lifetime value. This metric is essential for marketers to determine the total revenue the business can expect from one customer. It measures the value against the lifespan of customer loyalty.
- Subscriber growth rate. For social media accounts, it helps to have more subscribers and followers. They might be lurking around at first, but there’s an excellent chance for them to become customers. If they like the offer, they will decide to patronize the brand. The problem with subscribes is that they come and go. Also, not all of them are active and verified accounts. Hence, it’s not enough to understand the growth rate. It also helps to determine how many of them are active followers and can be potential customers.
- Customer retention rate. Not all customers who decided to buy the products the first time will come back for more. Others are one-off customers. This metric is also significant for businesses offering subscriptions. If the user didn’t decide to renew the subscription, it speaks volumes about the services offered. A poor retention rate requires changes in how the business provides services.
- Cost per lead. How much does it cost to generate a lead? If it’s too high, the business needs to rethink the strategy. If it reaches the point where the cost per lead is already similar to the profit, it doesn’t make sense. The company needs to change the campaign to reduce the cost and have a more targeted approach.
Figuring out how to be more visible online can be challenging. The good thing is that there are different metrics to consider. Understanding them will allow the company to take the right steps to move forward. It’s even better with the help of experts from the likes of a reputable digital marketing agency New York City. They know these metrics well. They can analyze the results and determine what to do next.