7 Digital Marketing Metrics Every Business Owner Should Track
When you have a business you need to check how your business is doing regularly. You need to look at your sales, expenses and profit. Digital marketing is the same. If you are spending money on ads, media or making your website show up in search results you need to know if it is really helping your business.
The good thing is you do not need to look at a lot of numbers. Just look at these 7 digital marketing metrics that really matter.
1. Website Traffic
Website traffic is the number of people who visit your website.
For example let us say you have a store that sells clothes. Month 1,000 people visited your website. This month 2,000 people visited. That is a thing. It means your marketing is working and more people are visiting your website.Having a lot of people visit your website is not enough. If people visit your website and leave away then there might be something wrong with your website.
More people visiting your website means you have chances to sell something.. People visiting your website need to do something like buy something.
2. Conversion Rate
This shows you how many people who visit your website actually do something like buy something or fill out a form.
Let us say 1,000 people visit your website and 50 people buy something. That means 5 out of 100 people who visited your website bought something.If another business has 1,000 people visit their website and 100 people buy something that means 10 out of 100 people who visited their website bought something. That means their website is better at selling things.
If you can get more people to buy something when they visit your website you can sell more without spending money on ads.
3. Cost Per Lead
A lead is someone who’s interested in your business. They might have filled out a form. Sent you a message.
Let us say you spend ₹5,000 on ads and you get 100 people who’re interested in your business. That means it costs you ₹50 to get one person interested in your business.If you can spend ₹3,000 on ads and get 100 people in your business that means it costs you ₹30 to get one person interested in your business. That is better and more efficient.
If you can get people interested in your business without spending a lot of money that means your marketing is working well.
4. Return on Investment
This is one of the important things to look at. It tells you if you are making money than you are spending.
For example if you spend ₹10,000 on ads and you get ₹40,000 in sales that means you are making money.If you spend ₹10,000 on digital ads and you only get ₹8,000 in sales that means you are losing money.
You should always look at this before you spend money on marketing.
5. Engagement Rate
This is when people like, comment or share your posts on media.
If you post things on media and nobody interacts with them that means your posts are not interesting or relevant.For example if 1,000 people see your post and 200 people like or comment on it that means people are interacting with your post. That means your posts are interesting and relevant.
When people interact with your posts that means they trust you and are more likely to buy something from you.
6. Customer Acquisition Cost
This is how much it costs to get one customer.
Let us say you spend ₹20,000 on marketing and you get 40 customers. That means it costs you ₹500 to get one customer.If you make ₹2,000 from each customer that is good.If you only make ₹400 from each customer that means you are losing money.
Knowing how much it costs to get one customer helps you make decisions about how much to charge for things and how to market your business.
7. Customer Lifetime Value
This is how money a customer will spend with you over time.
For example if one customer buys something from you for ₹1,000 that is how much they are worth to you.If they buy something from you every month for a year that means they are worth ₹12,000 to you.If it costs you ₹500 to get one customer and they are worth ₹12,000 to you that is a business.
That is why it is just as important to keep your customers happy as it’s to get new customers.
Digital marketing is not about guessing what works. It is about looking at numbers that show you what is really working.
If you look at these 7 things. Website traffic, conversions, cost per lead return on investment, engagement, customer acquisition cost and customer lifetime value. You will know what is working and what is not.
When you understand your numbers you can stop wasting money. Start growing your business with confidence. Digital marketing metrics like these are important to your business. You need to look at marketing metrics regularly to see how your business is doing. Digital marketing is, like any other part of your business. You need to check the numbers to see what is working.