The real performance indicators of digital marketing
Many companies rely on the wrong metrics to measure the performance of their digital marketing campaign. In this article, I will introduce you to the best ones.
Measuring the impact of a digital marketing campaign relies on analyzing the metrics that really matter.
In the world of digital marketing, agencies are very good at manipulating data and convincing clients that a campaign is successful. Google’s pretty charts and graphs might look good, but is the digital marketing campaign actually helping the company grow? Oftentimes, a business will be lured in by increased page views, Facebook likes, or even search engine keyword rankings. But are those numbers creating sales or generating new leads?
What are the most relevant performance indicators for a digital marketing campaign?
- number of leads
- website traffic
- number of sales
- corporate earnings
- customer retention
Increase in the number of leads
The more you know about your customers, the better you can create the right message and content for them. Knowing your target audience helps align the marketing message so that the product or service is more relevant to your ideal customer. The content you create should be what they are looking for and formatted accordingly.
Creating and delivering marketing messages across multiple online marketing channels should generate leads. The number of leads can and should be measured. The number one rule of any digital marketing campaign is to create a system that tracks every phone call, form submission, and user interaction. A campaign can only be rated if every lead is tracked. If you can’t measure it, you can’t improve it.
Leads are the by-product of a well-designed sales funnel. Each generated lead is measurable, ie the success of each funnel stage is measurable.
More leads mean more sales. More sales means more sales.
In fact, a digital marketing campaign can generate a lot of traffic, but if it doesn’t convert and turn into a lead, the campaign won’t work.
Increase in site traffic
Not all website traffic is created equal, and traffic that converts to new customers is the only traffic that really matters. Traffic is necessary to grow leads and make sales, but traffic alone is not a number a business should be infatuated with. Traffic can be deceiving, and high traffic numbers on a website can make a campaign appear successful even if there is no increase in sales.
That’s why it’s important to know how to properly measure and manage your website traffic. 80% of website traffic worldwide comes from search engines. This traffic comes from organic SEO campaigns, local marketing strategies, and PPC advertising. Conversion rates are 50% higher for 90% of US businesses because traffic is filtered by Google.
There are three types of traffic to measure. Organic traffic, referral traffic and paid traffic. It is important to understand and manage these three types of traffic.
Depending on the market, organic traffic is often the traffic that converts the most, as organic or natural ranking in search engines is a signal of trust for consumers. Only a small number of websites get top rankings and these go through Google’s algorithms to rank well. The top 3 sites on a search engine results page generate 68% of search traffic. So, you need to hire an experienced SEO agency to get better ranking and best results.
Referrer traffic is visitors who land on a website by clicking a link from another website. For example, a user might read an article and click a resource in that article to visit another website. Referral traffic can also come from press releases, social media channels, and local business profiles.
Paid traffic is traffic to a website that is delivered through Google Ads advertising or the placement of ads on other websites. The model involves paying for each click and bidding against the competition to get better ad placement. The first two or three listings on the Google results page are usually paid ads.
A digital marketing freelancer can help you set up an optimized campaign with monitoring of the key performance indicators that really matter.
increase in sales
An increase in sales is the most important performance indicator of any digital marketing campaign. The goal of every business is to increase its sales. The increase in sales through organic SEO can be measured by the increase in the number of products sold or the number of new customers acquired. Simply measure the current numbers and track increases over the course of the marketing campaign.
The other way a marketing campaign can increase sales is by increasing the value of the product or service. Brand awareness, product testimonials, a high search rate, and a strong and active social media presence can add value to products. By communicating the real solution of a product or service to potential customers, the value and relevance of the product is increased.
Measuring absolute sales growth can be skewed by some outliers. A better way to look at sales growth is to measure it as a percentage. This allows business owners to compare and contrast a few campaigns to see which were the most successful.
increase in sales
Measuring sales increases seems like an easy metric to track. But it’s how that surge is broken down that allows a company to make campaign decisions that keep the business growing. There are several ways for a business to increase its sales.
- More customers for a product or service.
- The purchase frequency per customer increases.
- The average basket goes up.
Increasing the number of customers who buy a product is the most common goal of a digital marketing campaign. It’s about making a product or service accessible to more people and turning those people into customers.
Increasing a customer’s purchase frequency is also a great way to increase sales. This often includes knowing a product’s shelf life and notifying consumers when the product they’re buying is about to expire. It may also include notifying existing customers of product updates, new business offers, or offering special offers and discounts to encourage them to purchase.
It is possible to increase the average shopping cart by upselling and offering other complementary products during the checkout process. Amazon does this very well, showing users similar products that other customers have bought together and delivering them as a bundle. A range of products not only provides an easier solution for the customer, but also increases the purchase price.
Increase customer loyalty
The best way to retain customers is to make a business more than just a place to buy. Be the resource where consumers can find information and get answers. Offer a value proposition that helps customers understand how the product or service can make their life easier, happier, or more efficient.
Customer service is one of the main factors that turn customers into repeat buyers of a business. Respond promptly to emails and phone calls with solutions for existing customers.
We all know the saying “out of sight, out of mind”. Businesses need to stay in touch with their current customers by providing updates and product and service offerings. It’s much easier to sell a product to an existing customer than it is to acquire a new customer. Treat loyal customers to offers and sales to entice them to keep buying from you.
In summary, the 5 key performance indicators for measuring the impact of a digital marketing campaign are:
- The number of leads
- website traffic
- The number of sales
- corporate earnings
- customer loyalty