The Three Crucial Marketing Metrics for Any Business
When it comes to marketing, you are probably familiar with a few metrics such as page views, likes, and retweets. However, there are three most important metrics that every business should know about.
These three metrics are the conversion rate, the bounce rate, and the time on site. The conversion rate is the number of visitors who have completed your desired action divided by the total number of visitors. The bounce rate is how many people left your site after viewing only one page within 30 seconds of arriving at your website. And lastly, time on site is how much time a visitor has spent on your website before they left or their session timed out.
Any marketing campaign will have success with these three crucial metrics in consideration.
1. The Importance of Marketing Metrics to Your Business
Marketing metrics are important because they enable marketers to gather data on the efficacy of their marketing campaigns and use it to make future decisions.
The importance of marketing metrics is not limited to determining whether a campaign was successful or not. It also helps marketers measure the success of digital channels, customer acquisition, retention and more.
There are two kinds of marketing metrics: qualitative and quantitative. Qualitative marketing metrics include sentiment analysis, social media engagement, customer feedback, etc. Quantitative measures include page views on a blog post, number of downloads for an app or number of customers acquired from a campaign.
2. Which Metrics Should You Be Tracking?
The metrics that brands should be tracking are as follows:
-Number of clicks on a post or articles
-Number of shares for a post or articles
-Number of likes for a post or article
-Average time spent by user on webpage, in minutes.
3. How Do You Measure the Success of Your Marketing Efforts?
Marketing metrics can be used to measure the success of marketing efforts. This section will cover the most important metrics and how they are best used to measure marketing success.
There are two main types of marketing metrics - those that measure a company's ability to reach its audience, and those that measure the return on investment for specific campaigns.
Reach metric: The Marketing Mix Model is used by marketers to figure out what worked in their marketing campaign and how they can improve it. It uses four types of variables: product, price, place, promotion. The model helps marketers see how well different strategies work with each other in order to generate the right results for a given campaign.
Return on investment metric: Return on Investment (ROI) is a popular way of measuring if a company has
Metric 1 – Sales Conversion Rate e.g., 10% (converts to 100 leads)
Sales Conversion Rate is the number of leads that convert into sales. It is an important metric for any company because it helps to measure the company’s effectiveness in converting leads into sales.
A conversion rate can be defined as a ratio between conversion and total website visitors. And it is calculated by dividing the number of conversions by total website visitors and multiplying the result with 100.
Metric 2 – Cost per Lead, or CPL e.g., £10 (cost to generate one lead) *see note below*
The cost per lead metric is the cost to generate one lead in a given channel. The CPL can be calculated by dividing the total cost of all leads generated by the total number of leads generated.
There are two ways that we can calculate the CPL:
1. Total Cost per Lead = Total Cost of Leads / Number of Leads
2. Cost Per Lead = Total Cost / Number of Leads
Metric 3- Return on Investment, or ROI e.g., £1,000 in profit generated by 10 leads at a conversion rate of 10% = 0.1 x £1000 = £100 in profit
The ROI is a financial metric that measures profitability and the return on an investment. The return on an investment can refer to the profit generated by 10 leads at a conversion rate of 10% or the £1,000 in profit generated by initial investment of £1,000.
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