Marketing professionals use digital marketing key performance indicators (KPIs) to determine how well their tactics are performing. As a marketing professional, you understand how difficult it can be to measure success rates without KPIs. Unfortunately, many marketers continue to obtain incomplete data even with KPIs because they fail to measure the right ones. When marketing teams focus on less relevant KPIs, they do not find out how well their campaigns are truly doing. Continue reading to discover the key digital marketing KPIs every marketing team should track.
Return On Investment
Firstly, digital marketing return on investment (dmROI) is one of the most important digital marketing KPIs. Marketers in all industries implement simple SEO strategies to earn higher ROIs. To measure dmROI, subtract the total cost of digital marketing from the total revenue attributed to digital. Then, divide that number by the total cost of digital marketing. Upon measuring this KPI, you gain insight into whether your digital tactics are working at all. If you discover that they are not performing well, you can take immediate steps to improve your processes. Then, you can avoid wasting your company’s finances. Simultaneously, you boost your value as a marketing professional. Every marketing team should track this metric to improve their overall performance.
Qualified Leads Per Month
Digital marketing teams should also track qualified leads per month. This is one of the main digital marketing KPIs because it shows how much of your traffic is actually made up of your target audience. When you launch campaigns with a digital marketing agency in NYC, you promote content with a specific audience in mind. If your website traffic rises right after launching a campaign, you might assume that you successfully reached your target audience. Unfortunately, that is not always the case. Many marketers use this KPI to figure out that their campaigns simply generated random traffic. They can then work to produce more targeted content for their next campaign. Therefore, this digital marketing KPI is worth measuring.
Lifetime Value Of A Customer
Another digital marketing KPI you and your marketing team should measure is lifetime value of a customer (LVC). Companies want to retain customers for more than just a couple of months. When customers love a company, they sign up for rewards programs and subscription packages. In doing so, they provide the company with constant capital. In order to boost your customer retention rates, you need to determine how long you retain them in the first place. Marketers measure this digital marketing KPI so that they can continuously boost their customer retention rates and, therefore, sales. To improve your rates even more, try out the top strategies to stop losing customers.
Click-through rate (CTR) is also considered one of the key digital marketing KPIs. To measure CTR, divide the total number of clicks on an ad by the total number of impressions. Multiply your answer by 100. Marketers use CTR to discover how well their advertisements reach consumers. Since every advertisement click counts as a visit, you can easily calculate the number of leads you earn from each ad. After you transform the number of visits into leads, you can understand how many potential customers you have gained from your campaign. With that being said, click-through rate is a crucial digital marketing KPI.
In addition to the above digital marketing KPIs, every marketing team should track traffic sources. After all, the top traffic-drivers should be utilized for future campaigns. When a few of your traffic sources outperform the others by a landslide, you can conclude that they are the ones mainly driving consumers to your online store. By measuring traffic sources, you can recognize the sources that are not driving any traffic. Rather than continuously wasting finances on unproductive sources, you can cut them off. Then, you can focus on the sources that increase your dmROI. Marketers typically focus on tracking direct and search traffic sources. They also measure referral traffic for optimal digital marketing KPI results.
Find out how well your marketing strategies are performing by measuring the top digital marketing KPIs. dmROI portrays how well your entire marketing plan is working. Track qualified leads per month. Lifetime value of a customer measurements encourage marketers to continuously improve their efforts. Click-through rate tracking allows you to easily compare the amount of potential customers you gained to the amount of consumers who purchased your products or services. Finally, the most profitable marketing teams keep track of the top-performing traffic sources. Measure these key digital marketing KPIs to give your digital marketing efforts a boost.