Many companies rely on the wrong metrics to measure the performance of their digital marketing campaign. In this article I propose the best ones.
Measuring the impact of a digital marketing campaign is based on analyzing the metrics that really matter.
In the world of digital marketing, agencies are very good at manipulating data and convincing customers that a campaign is successful. Google’s cute graphs and diagrams might look nice, but is the digital marketing campaign really helping the company grow? Often times, a company is enticed by an increase in site impressions, Facebook likes, or even keyword rankings on search engines. But do these numbers create sales or generate new leads?
What are the most relevant performance indicators for a digital marketing campaign?
- Number of leads
- Site traffic
- Number of sales
- Corporate income
- Customer loyalty
Increase in the number of contacts
The more you know your customers, the better you can create the right message and content for them. Knowing your audience helps target the marketing message so that the product or service is more relevant to your ideal customer. The content you create should be what they are looking for and should be formatted accordingly.
Creating and delivering marketing messages across multiple online marketing channels should create leads. The number of contacts can and should be measured. The number one rule of a digital marketing campaign is to create a system to track every phone call, every form submission, and every user interaction. Only by following each lead is it possible to evaluate a campaign. If you can’t measure it, you can’t improve it.
Leads are the byproduct of a well-designed sales funnel. Each lead generated can be measured, which means that the success of each stage of the funnel can be measured.
More leads means more sales. More sales means more revenue.
Indeed, a digital marketing campaign can generate a lot of traffic, but if it doesn’t convert and turn into a benefit, the campaign won’t work.
Increase in site traffic
Not all site traffic is the same, and traffic that converts to new customers is the only traffic that really matters. Traffic is needed to increase leads and make sales, but traffic alone isn’t a number a business should be infatuated with. Traffic can be deceptive, and high traffic numbers on a site can make a campaign seem successful even if there is no increase in revenue.
That’s why it’s important to know how to properly measure and manage your site traffic. 80% of website traffic worldwide comes from search engines. This traffic comes from organic SEO campaigns, local marketing strategies, and PPC advertising. Conversion rates are 50% higher with Google filtered traffic for 90% of US businesses.
There are three types of traffic that are important to measure. Organic traffic, referral traffic and paid traffic. These three types of traffic are important to understand and manage.
Organic traffic, depending on the market, is often the traffic that converts the most, because organic or natural search engine rankings are a sign of trust for consumers. Only a small number of sites will get the top positions and these go through Google’s algorithms to rank well. The top three sites ranked on a search engine results page generate 68% of search traffic. So you need to hire an experienced SEO agency to get better rankings and best results.
Referral traffic consists of visitors who land on a web page by clicking a link from another website. For example, a user might read an article and click on a resource in that article to visit another site. Referral traffic can also come from press releases, social media channels and local company profiles.
Paid traffic is traffic to a website that is delivered through Google Ads advertising or ad placement on other websites. The model involves paying for each click and bidding against the competition for better ad placement. The first two or three lists on the Google results page are usually paid ads.
A digital marketing freelancer can help you set up an optimized campaign by tracking the performance indicators that really matter.
Increase in sales
An increase in sales is the most important performance indicator of any digital marketing campaign. The goal of any business is to increase its revenues. The increase in sales through organic SEO can be measured by looking at the increase in the number of products sold or the number of new customers acquired. Just measure the current numbers and track the increases as your marketing campaign progresses.
The other way a marketing campaign can increase sales is to increase the value of the product or service. Brand awareness, product testimonials, a high search rate, and a strong and active social media presence can create value for products. By sharing the true solution provided by a product or service with potential customers, you increase the value and relevance of the product.
The measurement of an absolute increase in sales can be skewed by some outliers. A better way to look at sales growth is to measure it as a percentage. This allows business owners to compare and contrast certain campaigns to determine which ones have been most successful.
Increase in revenue
Measuring revenue growth seems like a simple metric to monitor. But it’s how that increase is broken down that will allow a company to make campaign decisions that will continue to grow the business. There are several ways a business can increase its revenue.
- Multiple customers for a product or service.
- The frequency of purchases per customer is increasing.
- The average basket increases.
Increasing the number of customers who buy a product is the most common goal of a digital marketing campaign. It’s about bringing a product or service to more people and converting those people into customers.
Increasing a customer’s purchase frequency is also a great way to increase revenue. This often involves knowing a product’s shelf life and notifying consumers when the product they purchased is about to expire. It can also include informing current customers about product updates, new commercial offers, or offering sales and discounts to entice them to buy more.
You can increase your average basket by upselling and offering other complementary products during the checkout process. Amazon does this very well by showing users similar products that other customers have bought together and delivering them in bundles. A set of products not only provides a simpler solution for the customer, but also increases the purchase amount.
Increase customer loyalty
The best way to build customer loyalty is to make a business more than just a place to shop. It becomes the resource where consumers can find information and get answers. Offer a value proposition that helps customers understand how your product or service can make their life easier, happier, or more efficient.
Customer service is one of the main factors that make customers become repeat buyers of a business. Respond to emails and phone calls promptly with solutions for current customers.
We’ve all heard the saying “out of sight, out of mind”. Businesses need to stay in touch with their current customers by offering updates and offers of products and services. It is much easier to sell a product to an existing customer than to acquire a new one. Treat loyal customers with offers and sales to entice them to keep buying from you.
In conclusion, the 5 most important performance indicators to measure the impact of a digital marketing campaign are:
- The number of perspectives
- Website traffic
- The number of sales
- Corporate income
- Customer loyalty