As online selling becomes a booming trend, a digital marketing strategy becomes the need of the hour. It is not only important to reach the customers through digital channels but also to measure the efficacy of the strategy to ensure that the efforts are bringing in the expected returns. As a result, digital marketers need to study the measurable metrics along with other analytical data to assess the performance of their strategy as well as tweak it for improvements.
At the same time, it is important to identify the right metrics to measure as a part of an effective online marketing plan. The metrics available are many in number but there are some which are redundant in terms of usability. Let us know about the key digital marketing metrics that are actually useful for the digital marketing agency and have the potential to unlock new opportunities for the business.
Traffic Related Metrics
- Overall Site Traffic: As the name suggests, the overall sire traffic refers to the number of unique visits that a site gets in a week or a month. A high value translates into better chances of potential customers for the site.
- New vs Returning Visitors: These metrics give a significant overview of the engagement ability of the website. A high percentage of returning visitors is a positive indication while a lower one shows that the website is not serving relevant content.
- Mobile Traffic: Mobiles have emerged as the mainstay of digital marketing as they open up huge opportunities for online businesses. The Mobile Traffic metric measures the visitors accessing the website through mobile. It enables sellers to structure and plan their content for increasing the engagement with mobile visitors.
- Social Media Metrics: Social media metrics such as page views, post likes, reach, and engagement on various channels gives a fair indication of the traffic fetched by the social platforms.
- Click Through Rate (CTR): The CTR metric is used to evaluate the success of a PPC campaign as it measures the number of visitors who actually click the PPC ads. A higher CTR indicates a better quality score, which lowers the campaign cost.
- Cost Per Click (CPC): Like CTR, CPC too is a PPC parameter. It refers to the cost that the seller has to incur with every single click on his PPC ad. A higher CPC elevates the cost of the campaign and is thus not desirable.
- Conversion Rate (CVR): Conversion rate, as implied by the name, is the number of visitors who have actually converted into sales. This is a vital metric of success of a digital strategy as it fulfills the goal of bringing in sales.
- Cost Per Lead (CPL): CPL refers to the lead conversion ratio of a campaign and its corresponding cost. It indicates the profitability of a digital marketing campaign and also gives insights about the improvements that can be made to lower the CPL.
- Bounce Rate: Bounce rate measures the number of visitors bouncing back or leaving the site immediately after they arrive. A high bounce rate implies the presence of irrelevant content on the site. Most digital marketing specialists consider it as an important metric as it enables the optimization of content.
- Average Time on Site: Digital marketers are highly interested in known the Average Time on Site that a user spends. A high value not only shows the presence of relevant content on the website but also translates into a higher probability of conversion. The longer the user stays on the site, the better are his chances of completing the purchase process.
- Customer Retention Rate: Customer Retention Rate measures the percentage of customers who return to the site to shop again. Online businesses strive for a high customer retention rate as it translates into their ability to enhance the conversions.
- Return On Investment (ROI): ROI is the measure of the website traffic that eventually gets converted into new paying customers. This metric the campaign areas that are driving revenues and sales for the website. It also gives an insight of those areas which need to be improved.
- Cost to Acquire a Customer (CAC): While ROI assesses the number of new paying customers for a website, CAC sums up the advertising and marketing costs and divides them with the number of new paying customers to find an average value. CAC is a reliable measure of the success of an online marketing campaign.
A comprehensive assessment of all these key metrics offers a trustworthy insight into the effectiveness of a campaign as well as gives ideas about the improvements to be made. Orange Mantra is a reputed digital marketing company with a competent team to ensure the success of your online business with the right digital strategy.