Digital Marketing Metrics
Digital marketing metrics are your Key Performance Indices (KPIs) that can help you measure your online marketing campaigns. These are absolutely essential as they help you indicate at which stage of your marketing campaign is underperforming and you can take the necessary actions to improve it. Marketing metrics come in various forms and there are no defined set of metrics that will provide the complete information that you are seeking for. If you are looking to employ a set of metrics to measure your campaign, you must adjust available standard metrics or define your own metrics best suitable for your company. With that said, Site Galleria provides a list of digital marketing metrics that you can start applying immediately to measure up your marketing efforts:
1. Cost Per Acquisition (CPA), one of the important digital marketing metrics:
Cost Per Acquisition metric is used for measuring how much aggregate cost or total cost it takes to acquire a customer. CPA can be calculated by dividing the total cost of the whole campaign by the number of conversions occurred during the campaign period.
Cost Per Acquisition (CPA) = Total cost of campaign / Total conversions
2. Brand Mentions and other brand digital marketing metrics:
Brand Mentions is one of the key brand awareness metrics. Brand Mentions is based on how many times your brand is mentioned in various social media platforms. Other important brand awareness metrics are the total number of followers in social media profiles and searches for the brand in search engines. These metrics can be used over different time scale to measure the performance of your brand over different time periods. Many third-party social monitoring services provide these metrics which can be utilised alongside sentiment analysis to paint a pretty accurate picture of the brand perception among the public.
3. Return on Investment:
Return of Investment (ROI) is used for measuring the effectiveness of the marketing campaigns. ROI is calculated by comparing the sales growth of a company to that of the amount spent during a marketing campaign. This is an effective metric to review the performance of a marketing campaign. Return on Investment is one of the most important digital marketing metrics that you need to keep track of. The investment variable need not be restrained to money, as time or any other quantity can be used in its place as well.
Return on investment (ROI) = (Revenue generated – Total marketing campaign cost) / Total Marketing Campaign cost
4. Total Visits:
Total visits refer to the total number of users who have visited a website or webpage. This metric is used for gauging the popularity of a website. Sources of traffic combined with total visits metrics provide a pretty accurate picture of which campaign has been effective. Total unique visits metric is used for calculating the total number of first-time visitors to the website or the intended landing page. Any of the measure along with the time scale provides a clear picture of the popularity or usage trend of the website.
5. Attrition Rate or churn rate:
Attrition rate or churn rate measures the losses in the existing customer base due to inactivity or cancellation of services. Churn rate is a crucial measure to identify the performance and satisfaction derived by your customers using the service provided by your company. Even though a negative parameter, Churn or Attrition Rate is one of the most important digital marketing metrics to keep an eye on. Attrition rate is calculated by dividing the number of users lost at the end of a set period by the number of customers at the beginning of the next set period.
Churn (or) attrition rate = Number of customers lost at the beginning of a set period / Number of customers at the beginning of the next set period
6. Cost per lead:
Cost per Lead is used for measuring the investment made for the marketing campaign in generating quality leads. This metric is very similar to the cost per acquisition metric, but the metric measures interest generated by the marketing campaign in the potential customer base rather than acquiring them for your services. You must have similar metrics for each section of your marketing funnel to effectively measure the effectiveness of your marketing campaign, these kinds of metrics are known as benchmarks metrics.
Cost per lead = Total cost of the marketing campaign / Total number of leads generated in the marketing campaign
7. Click through Rate:
Click through Rate are calculated by the total number of clicks an ad receives divided by the total number of impressions have been made on that particular ad. This metric can also be used for measuring the effectiveness of the link text and meta description in the Search Engine Results Page (SERP). Click Through Rate effectively measures the effectiveness of an ad copy to its viewers, making it one of the crucial digital marketing metrics. It is an effective measure of AB testing.
Click Through Rate (CTR) = Number of clicks on an ad copy / Total number of impressions an ad copy received
8. Life Time Value (LTV):
Unlike other metrics mentioned here, Customer Lifetime Value takes into account the whole journey of a user through the marketing funnel. Lifetime Value of the customer is used for determining the value a customer will generate to the company while using its services. It is calculated by taking into account the cost the company has spent on acquiring a single customer, and the value a customer is expected to produce to the organisation throughout the user journey. There are various formulae for calculating the Lifetime Value (LTV) of the customer, but the most prominent one used are:
Lifetime Value = (Margin x Retention Rate) / (1+ Discount Rate – Retention Rate)
9. Response Rate:
Response rate metric helps in measuring how engaged people are to the brand. It is an effective measure to determine brand awareness and perception, and how much emotionally invested the customers are to your company’s brand. Response Rate is calculated dividing the number of customers responding to marketing communication to the number of customers exposed to the same marketing communication.
Response Rate = Customer responding to marketing initiative / Customers exposed to the initiative
10. Net Promoter Score:
Customers may like to avail your services, but they may not be likely to recommend your brand to other people in their social circle. Net Promoter Score metric helps in measuring how likely your existing customers are to promote your band to others. Net promoter score is found out with the help of surveys and there are various benchmarks set by different survey companies to calculate the NPS. Most of the benchmarks involve finding the difference between the promoters and the detractors.
Net Promoter Score (NPS) = Promoters (in %) – Detractors (in %)
At Site Galleria we are focused on providing the best value to our clients and utilise their marketing budget is as efficient manner as possible. We are able to provide the best value to our customers with the help of various effective digital marketing metrics custom designed to suit their needs. Our care for our customers and the full effort we give for them makes us the best digital marketing company in Bangalore.