One of the key advantages of digital marketing is to be measurable. Thus, the possibility of documenting and evaluating the strategies used allows an understanding of the strategy and the decision making based on data.
Before the internet, proving the value of a marketing action was much more difficult. Lack of knowledge motivates bad decisions.
And, for you not to make them and to make the best of all your efforts, setting measurement parameters is essential. It is impossible to succeed without using them correctly.
We’ve listed some of the most important marketing metrics below, but we also recommend that you study more about it when designing a strategy.
The best way to start observing the correct metrics is by getting some data from your blog or website. Common metrics used in a strategy are:
Unique Visitors: How many people access your page. Each visitor is counted only once within the stated time period.
Sessions: is the set of interactions, such as pageviews and clicks, that the same user performs in a given period.
Organic Traffic and Paid: represents the number of sessions that originate from search engines and paid web campaigns.
Bounce Rate: The percentage of users who only make one visit, without performing other interactions, such as clicks and pageviews.
Conversion Rate: This is the percentage of the conversion between the number of visits and the number of conversions.
External Links: is the volume and quality of links coming from other domains that direct to your site or blog.
But these are not the only marketing metrics. In fact, knowing all the metrics and choosing the ones that best suit your business should be a step in your planning.
Therefore, we will carry out an in-depth study on some of the following:
Return On Investment
This is a factor that is directly linked to the profitability of your strategy. ROI represents a comparison between how much you grew in sales and how much you spent.
So, the ROI formula is:
ROI = return – cost of investment / cost of investment
Suppose that, in addition to all costs, your total investment in Content Marketing was $ 100,000 for 1 year.
During this period, this strategy was responsible for 120 sales with an average revenue of R $ 5,000.00, resulting in a ROI of 5 or 500%.
So, for each real invested in this so-called Content Marketing strategy, 5 reais returned in profit form – which would be a great result!
Customer Acquisition Cost
The CAC is nothing more than the relationship between the number of customers and their spending on digital marketing. This metric seeks to answer the question: “How much do I need to invest to attract a new customer?”.
Thus, it is calculated by dividing its costs for the acquisition of customers by the number of new customers in the period.
Assuming a company spent $ 100,000 in marketing in one year and acquired 120 new customers that year, its CAC is $ 833.33.
Recurring Monthly Revenue (MRR)
Also known as Monthly Recurrent Revenue, it is a way to predict the revenue generated. This metric is very common in businesses that involve signatures, as they assume periodic payments.
This measure facilitates performance analysis, especially when your products have a wide range of prices.
For example, think of a contract being paid in instalments. If a customer buys a service for $ 5,000 over a year, divided into 12 instalments, then the MRR generated is $ 416.67. Add that to all other customers and that’s your company’s MRR.
This calculation allows you to visualize the pattern in which your business is growing in terms of revenue.
Cost Per Acquisition
Unlike customer acquisition cost, this is a comparison that may vary. An acquisition, in fact, is defined by the business owner. It could be a new contact, a new lead, or a qualified lead.
As mentioned, this metric is common in lead generation campaigns. This is the sum of your expenses and the contacts purchased within a period of time.
An interesting tip is to compare your CPA with the revenue generated on each acquisition. So if your CPA is higher than the RPA, it is an indicator that your strategy is failing.
Cost Per Lead
The cost per lead, as the name itself explains, demonstrates how much you spend to generate a new lead. It can be a metric similar to CPA, but applicable to only one type of contact.
Lead generation is a recurring practice in digital marketing strategies. We have already said how much lead management is important, is not it?
More leads represent more opportunities, so we need to measure them! CPL is the metric to look at how your efficiency, your spending, and projected lead generation are.
Nobody wants to get rid of a customer, right? Therefore, it is important to look at how many of them are going away all month, year or any period.
Retention can be calculated using the total number of customers at the beginning and end of the period along with the number of new customers.
Retention Fee = ((Customers at the end of the period – new customers) / customers at the beginning of the period) * 100
The retention rate is always equal to 1 – churn rate. That is, these numbers represent the same thing from different perspectives.
Let’s take an example: if you start a month with 120 clients and close it with 130. In that interval, you won 20 new customers and had 10 cancellations. The result will be 10 extra customers.
This means a retention rate of 91.67% of your customers, or a dropout rate of 8.33%.
Traffic By Channel
A digital marketing strategy today uses multiple channels of acquisition. Several of them are available and have a consolidated audience volume.
From organic searches to social media, paid campaigns, etc. Each of these channels will have a share in the quantity and quality of visits that your domain receives, and consequently the number of sales it generates.
So it’s important to check how much each of your channels performs to understand how your results are.
Sessions are calculated, by default, by engaging a user for up to 30 minutes. So if you visit a website twice in a 30-minute interval, this will be counted as one session only.
However, after 30 minutes from the first visit, it will be counted as a new session. When your content has a high power of attraction, often new and recurring users will visit you.