Here at our company, I always use Google analytics from measuring key performance indicators. It’s important to have KPIs for both your digital marketing efforts. Like I’ve said, the way to go about digital marketing is to be methodical and deliberate. This way, you avoid falling into tactical marketing hell.
When it comes to launching any digital marketing campaign, you can choose to:
- Learn your numbers by heart, traffic, conversions, rankings and ROI
- Or you can run as far a way from the numbers as far as possible
If you’re in the second group, it’s a huge mistake. Over the years, I’ve heard SEO gurus to consultants say: ‘you only need to track rankings’ or ‘SEO is only about profitability, and not rankings’, that’s bullshit.
I’ve heard internet marketing gurus claim in SEO courses: ‘it’s not about keyword rankings, it’s about profitability’.
If you’re going to an SEO campaign not measuring the digital side of things, you’re going into a scam.
It’s not just about page one rankings, it’s also not just about ‘profitability’ either. You need to measure everything. You need your KPIs on your digital side, and your KPIs on your business side.
These key performance indicators give you an overall effectiveness of your digital marketing.
5 Key Digital Marketing Metrics that You Need to Pay Attention To
- Bounce Rate:
For your pages and posts, your ‘bounce rate’, tracks how many people leave your site after visiting just one page. If your visitor click other areas of your sites, a low bounce rate is a good sign that your content fills the needs of your user.
Low bounce = positive SEO.
- Cost Per Acquisition:
If you’re running paid advertising, you HAVE to know this metric.
Basically, cost per acquisition is the cost of getting one paying customer. Whilst it’s easy to get distracted by other data points such as: clicks, conversions, likes or shares, the simplest metric to use it to measure how much you’re paying to get one customer.
If you’re selling a $30 product, your cost per acquisition needs to be lesser than $30. If you’re spending $300 on pay per click/ Facebook advertising/ SEO, you need at least 10 customers to justify to your cost.
- Cost Per Lead:
If you’re paying $20 per click, and for every 5 clicks you get, you get an opt in, or an enquiry, your cost per lead is $100.
$20 X 5 clicks = $100
- Cost Per Acquisition
Cost per acquisition measures the amount you’re spending to get a sale or a purchase.
If you’re getting paying $100 per lead, and you need 5 leads to make a purchase, your cost per acquisition is $500.
- Return on Investment:
How to measure your return on investment is taking your average value order divided by your cost per acquisition.
ROI = average value order/ cost per acquisition
When can Digital Marketing Metrics Lie?
Through increasing any of these metrics in your advertisement or digital marketing campaign, whether be it through choosing a more specific audience, having a better conversion on your landing page, better conversion from lead to purchase, would result in a positive return on investment.
When I started out as an SEO consultant, I went from NOT measuring anything, to measuring everything. These days, I take a more balanced perspective on digital marketing. Further more, these numbers do not take into account the time, design efforts, research efforts into designing the ad.
Yes, your bounce rate, conversion rate counts, however, don’t just rely on these technical metrics. There are other factors such as UX, branding, design and positioning that will drive results in your digital marketing campaign.