Businesses cannot improve what they don’t know. They can’t double down on what works if they don’t know what’s actually working. Data can reveal both and answer the most important questions that will help businesses grow. Companies will have more success marketing if they can gather more information about customers. What digital marketing metrics can businesses use to stimulate growth?
6 Important Marketing Metrics Every Business Should Track
Here are the top six metrics that every business should optimize in this year’s financial year.
1. Traffic sources
It is important to understand where your website visitors come from. Are they visiting your website because they were searching for you? Did they click on the link of a referral partner? Did it happen after you saw a post on social media? It’s important to know how many people visit your site each month. However, it’s also valuable to determine how they found you.
These insights will allow you to prioritize the most profitable channels and improve on those that are not performing.
2. Time on site
When visitors browse your website, It’s important to find out how long they’ve been browsing. This important metric shows how interested visitors are in your content, and if you attract exemplary visitors.
Visitors who only browse your site for a few seconds may not be interested in the content. This could indicate that they didn’t visit the site. They were searching for something or they quickly realized that they aren’t interested in what you have to offer. If visitors spend more than a minute on your site, this can indicate that you have valuable content that the market is looking for. Every business should have high bounce rates and high site times.
Marketers should measure engagement rates when posting to social media, sending out promotional emails, and displaying ads. Are there Instagram posts that get more likes than others? Is there a particular day that gets more post response, open rates, or click rates than others? You can communicate better with your audience by understanding their engagement preferences and habits.
This will allow you to optimize when and how often promotions are sent. You will be able to use it as a guide for content creation since you can see what people are responding to most.
4. Customer Acquisition Cost (CAC)
There is a cost associated with every customer — it is not a marketing dream to get customers for free. Businesses must calculate the cost of acquiring customers during their buying journey.
This metric will allow you to determine if a campaign was successful and if it was worth the investment. It will also help you plan how to maximize your marketing budget. It will also confirm if you are targeting the right buyers.
5. Customer Lifetime Value (CLV)
It’s hard to find loyalty, but it is easy to measure. It is important to know how much your customers will spend on your brand over their lifetime. This helps you decide how much marketing to them should cost. This is an important metric to determine the financial value of a customer.
Your customer database contains segments. These segments can be repeat customers or people who just browse the web. Marketing spend is not often targeted to them. This will allow you to decide where to invest your money.
6. Brand equity
Be an expert on your audience to understand how they see you and your products. Even if you don’t purchase their products, you will recognize the names of Nike, Coca-Cola, and Calvin Klein. Most people buy tissues and call them “Kleenex”, regardless of whether they are buying that brand. Depending on the customer, brand equity could equal brand value.
Analyzing the strength of your brand will allow you to determine how dominant you are on the market and whether customers choose your brand over other brands. Customers will be willing to pay more for products if they feel your brand is valuable.
This is a case in point: While thousands of accessory companies sell bags below $20, there are 5,556 Louis Vuitton shops. The cheapest bag was once reported as $790. This metric can be used to track brand equity over time.
It’s easy to get overwhelmed by the amount of data out there. Instead, you should focus on the marketing metrics that are most important to your business. Start by asking yourself these questions about your brand and customers when deciding what metrics to measure. Next, look at data to discover the answers.