Top 15 Important Digital Marketing Roi Metrics You Need To Know
The digital marketing field is swelling with data, so much so that it can be intimidating for a marketer. The extensive amount of data makes it difficult to correctly measure the marketing ROI metrics. Here comes 15 amazing metrics to easily measure your ROI. These include-
- Cost per lead (CPL).
- Lead close rate.
- Cost per acquisition (CPA).
- Average order value (AOV).
- Conversion rates by channel.
- Conversion rates by device.
- Exit rate.
- Blog click-through rates.
- Customer lifetime value (CLV).
- Net Promoter Score (NPS).
- Time invested in project/campaign vs. returns.
- Traffic to lead ratio.
- Return on Ad Spend (ROAS).
- Overall revenue.
- Customer retention rate.
1. Cost Per Lead (CPL)
A marketer must know how much he is paying for collecting leads. If what you produce by closing leads is less than the cost of each lead, then you are at a loss. It is clearly a backward investment. You must be aware of the performance of your marketing efforts, so as to get an idea about further budget and strategic decisions.
2. Lead Close Rate
As the best SEO services in Lucknow say lead close rate is an essential metric for measuring ROI. A marketer must keep an eye on the close rate, meaning he should check it against the generated leads. It will ensure that digital marketing efforts deliver profitable leads. Information about closed leads helps you to manage new digital marketing services. By measuring close rates you understand how sales teams and representatives close leads.
3. Cost Per Acquisition
By knowing your closed leads, you can figure out your cost per acquisition. Simply divide the marketing cost by the number of sales generated. It will strengthen the grasp of your marketing ROI metrics knowledge. Also, it will help you to drive and push the goals to conversions or to pre-set outcomes.
4. Average Order Value
As the best digital marketing company in Lucknow tell marketers must pay attention to average order value. The average order value is an essential marketing ROI metric. It makes marketers keep track of profits as well as manage profit reporting and revenue growth. Even a slight increase in the average order value can give you an increment of thousands of dollars. It will increase new revenue, improve user experience, and offer up-sell opportunities.
5. Conversion Rates by Channel
Integrated digital marketing strategies are helpful for improving overall performance and revenue. By measuring CMOs you can get an insight into what the channels are performing plus which channels are most cost-effective. It helps you understand the source of traffic, whether it is organic, paid, social media, or any other avenue. CMO helps you to know from where is the bulk of our customers coming. Plus, it indicates more opportunities.
6. Conversion Rates by Device
Furthermore, one should check the conversion rates by device. If some device lacks conversion performance, then you must reinvest in that area. Or if some device renders more conversion rate, then you boost investment in it. Marketers in retail and e-commerce can benefit more from this metric.
7. Exit Rate
Exit rate refers to the number of visitors leaving your website from a landing page. With website analytics, you can know the specific number of exits from each of your landing pages. It will also help give you a ratio of the exits per page to views per page.
8. Blog Click-Through Rates
Blogs are again an effective metric to measure your ROI. Blogs help in branding and bringing in a good amount of traffic. Blogs offer high bounce and exit rates. CTR Mectrics also use in PPC Services in India You must use blogs to set goals for driving traffic. Even a small increment in the blog click-through offers valuable new business at almost no additional marketing costs.
9. Customer Lifetime Value
In order to accurately understand the ROI of your marketing efforts you should know how much will the average customer spend over their lifetime. It is called customer lifetime value.
NPS refers to net promoter score. It is a metric wherein the customers indicate their recommendation of a product or service to others. Tracking the promoter’s v/s detractors (that is the customers who have left or are going to leave) will improve your customer service strategies and tactics.
11. Time Invested In Project/Campaign vs. Returns
Keep a hold on the time that each person in your organization invests in a particular project or campaign. It will help you to know the expertise of each employee. Plus, you can ensure that the projects are going well. Also, knowing the expertise of each employee will help you easily divide the project tasks.
12. Traffic to Lead Ratio
A marketer must understand the ratio of the value of marketing campaigns with the traffic to the lead ratio. With KPI you can simply measure the percentage of visitors who turn into leads.
ROAS refers to the return on ad spend. It helps in the identification of how well your paid campaigns and advertising are doing. It helps in easy review of performance, comparison of channel spend and forecast for the future.
14. Overall Revenue
A marketer has to constantly note the comparisons to sales performance. For instance-
- When the sales perform, when the sales excel.
- When the sales do not go well when marketing suddenly gets more mentions.
You can avoid these issues by measuring and attributing everything you do. You must ensure that your marketing and sales team are synergetic in reporting and tracking the bottom-line revenue.
15. Customer Retention Rate
Above all, calculate the customer retention rate. The simple formula is:
Customer Retention Rate (CRR) = ((E–N)/S) x 100
E refers to the number of customers you ended the period with, N refers to the number of customers you gained during the period, and S refers to the number of customers you started the period with.