Even if some companies don’t see it that way, digital marketing is an investment. And like any investment, сompanies want to know if they will see a return. This is why it’s important to understand what companies measure for their digital marketing ROI.
By checking the metrics, сompanies can receive a better indication of the real value of their digital marketing campaigns. The best part about it is that most companies have access to the information needed in order to measure their digital marketing ROI.
If your ROI isn’t as good or you’re seeking to improve it further, it’s best to execute a better set of strategies. Partner with an agency if needed to analyze the metrics and come up with an ideal marketing plan.
Here are some metrics to look up:
1) Monthly Visitors
The more visitors their business gets across different channels, the more traffic they will have to their site. This is why companies strive to increase their monthly visitors by improving the quality of their content, SEO, and marketing strategies. A good goal for monthly visitors is about 3 to 6 percent growth for each month.
2) Average Time on Page
To have a better understanding of how effective your digital marketing and website user experience is, take the average time on a page into consideration. The average time on a page could be anywhere from 30 to 90 seconds. If it’s lower than the industry standards, improve the quality of your content and work on your SEO.
3) Return on Ad Spend
Receiving a Return on your Ad Spend or ROAS is a popular metric utilized by many companies when analyzing the ROI of your digital marketing. What it means is that a company can get more bang for its buck by spending its marketing dollars in the right places. This can give you insight into how and when to invest more money into your advertisements.
4) Average Order Value
For e-commerce businesses, the average order value is the key to success. It’s the monetary value of a customer’s order per transaction. By measuring the average order value, you can see the overall effectiveness of your e-commerce and digital marketing strategies. Improve your sales and marketing strategies to make it worth the investment.
5) Cost Per Lead
The cost per lead is a useful metric to determine how much a lead costs your business. Plus, it looks at how much you have to spend to convert a potential customer into a real customer. To figure out the cost per lead, you have to look at the total advertising expenses and divide it by the number of leads generated.
6) Conversion Rate
Conversion rate is a pretty straightforward metric, which is the percentage of visitors who signed up for a free trial, became a lead, and even converted into customers. If a company cannot convert its visitors and leads into actual customers, it’s clear that its digital marketing and sales are ineffective, requiring a bit of a shift.
It’s paramount to stay ahead of the curve and thrive on the success of their digital marketing strategies. Understanding what you’re doing right, what you’re doing wrong, and how you can improve your strategies is the key to increasing the ROI of your digital marketing.
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