It’s harder than ever to ignore the benefits of digital marketing. More people than ever primarily use the internet to get information, find entertainment, and pass the time. That’s why digital marketing now makes up 46% of all ad spend in the marketing industry.
The question is, do you have the information you need to market on the internet successfully?
Tracking the proper digital marketing KPIs is essential to making the most of your marketing efforts. Keep reading to learn some of the most important digital marketing metrics you need to track to succeed in your marketing efforts.
Customer Lifetime Value
Tracking only the money a customer spends after viewing one of your ads doesn’t always tell you the whole story about how profitable your ad campaigns are. Someone could spend a small amount of money that doesn’t equal what you paid for the sale, but then buy enough products in the future that far exceed what you paid.
That’s why you can’t rely only on someone’s first purchase to determine what they’re worth. You need to track every purchase your customers make throughout their lifetimes.
The customer lifetime value will tell you this. Make sure you create this report and use it in your analysis to learn more about the overall effectiveness of a marketing campaign.
Cost Per Customer
There are a lot of little metrics you can track across all your marketing methods. However, there is one thing you need to establish for your whole marketing department.
How much does it cost for you to acquire a single customer?
Your cost per customer tells you how expensive it is for you to grow your customer base. This value can vary significantly based on your advertising method. However, you should have an average cost across all your channels.
Your goal is to make this number as small as possible. Look through your current marketing channels to see what’s keeping your cost per customer so high. If a channel isn’t producing as good of results as another one, it may be a smarter marketing choice to abandon a marketing channel and focus your energy on optimizing more profitable marketing methods.
Your conversion rate is one of the most critical metrics for your marketing campaign. If you don’t understand how many of the people viewing your ads convert to customers, there’s no way for you to gauge how effective your ads are.
One area a conversion rate helps is with A/B testing. An A/B test is a small change to your marketing copy or landing page intended to increase your conversion rate. These small changes can increase or decrease your success.
Your goal is to make many of these changes, test them, and see which ones produce the best results. Your conversion rate will help you measure the success of your changes.
Repeating this process over time will improve your ads and produce more profit for your business.
Return on Investment
You can’t just throw money into a pit, not track how much you get back from your efforts, and expect to grow your business. You’re going to run out of money and go out of business at some point.
Tracking your return on investment will stop that from happening. It’s okay to lose some money at the start of your marketing campaigns. However, this can’t happen forever.
You need to see a return on your investment at some point. Keeping track of your return over time will help you decide if a marketing campaign is worth continuing.
If something doesn’t look promising, you can then move on to another marketing channel and try to get a great return using another advertisement.
Email Open Rate
Even with the invention of social media and the new ways of communicating, email is still around and one of the most popular forms of communicating. Social media users aren’t always in the mood to buy and are more interested in entertaining themselves. That’s why email is still known to produce some of the best results for companies looking for a marketing boost.
However, you need your email list subscribers to open your emails if you want them to buy your products. The question is, how do you know people are opening your mail?
Your email list provider should provide you with an email open rate metric. This information will tell you what percentage of your list opens your messages.
You can use this statistic to perform small tests on your email subjects to see what type of subject lines produce the most opens. These changes will lead to more people seeing your messaging and buying your products.
Regular ad spend isn’t the only thing you need to track when marketing your company today. Social media now plays a vital role in growing companies. If you aren’t tracking your social media progress, you won’t know if what you’re currently doing is helping to grow your following.
Tracking your follower count on your social media properties will help you figure this out. Since growing social media is a great way to keep in touch with customers and make them more engaged with your brand, it pays to push people to follow your accounts.
Of course, tracking follower growth won’t tell you everything about what’s helping you get followers. However, it will help you figure out if your overall marketing efforts produce social media results.
Start Tracking Your Digital Marketing KPIs Today
You can’t create great marketing campaigns without the data to do so. Without great data, all you’re doing is making guesses about what works. The digital marketing KPIs above will give you the information to optimize your ad campaigns and start profiting from your efforts.
Of course, you’ll need to learn more about using the data you collect if you want to start maximizing your ad profits. Check out the blog to learn more about creating great marketing campaigns.