The need to digitally market your brand has become more critical in this increasingly digital world. But it is not feasible to manage all digital marketing needs in-house for a company. This is where a digital marketing company comes into the picture. Improving your digital presence can take your company global at a comparatively low cost compared to other modes of marketing.
Say that you have already got a digital marketing agency. How can you measure the return of investment (ROI)? Measuring the results is really important but equally challenging. The metric for which one needs to concentrate more depends on the type of products or services and whether your business is B2B, B2C, or D2C.
Here are ten metrics that you can use to measure the ROI of digital marketing:
Unique Monthly Visitors: This metric gives your website many visitors. It is tracked using any tracking tools. We can further classify this count as visitors via organic, paid, or social market and then measure the value it brings.
Cost per Lead (CPL): This quantity tells you whether the marketing is giving you an actual profit. This metric is associated with paid marketing like search engine ads, display ads, etc., as you pay for this. It is the cost per conversion. As marketing modes like Search Engine Optimization and Content marketing are primarily unpaid, you need not measure CPL in this case.
Cost per Acquisition (CPA): This is the marketing cost per sale generated. It is the basis on which many digital marketing agencies operate. CPA helps to have a conversion-driven approach in marketing.
Conversion Rate: Conversion rate refers to the number of website visitors who turn into a customer. Further, they can track the conversion rate according to the channel and the device. It can help one focus on a particular channel or a device and modify others to increase the reach.
Exit Rate: Same as the number of people visiting the website is critical, the number of people who leave the website from a particular landing page is equally important. It is significant as it gives an insight into the changes one needs to bring to the website.
Return on Ad Spend (ROAS): This gives an idea of the revenue earned. But it will not take into account the profit margin. ROAS can be calculated as the percentage of revenue per total cost.
Blog Click-Through Rates (CTR): Blogs are a great way to draw traffic to your website. The click-through rate reflects how many people enter your blog or website. So it’s necessary to have an eye-catching ad or email that you use to attract your website. While CTR brings people to your website, what makes them stay and perform an action is more critical. It is measured using the Bounce Rate and Conversion Rate. Bounce Rate is the customers who exit without a crucial step. Sometimes visitors might leave due to another priority work. One can retarget the visitor that makes them act.
Traffic to Lead Ratio: An improvement in the traffic to the website is indeed a good sign. But having more visitors does not bring profit but converting them does. Thus, calculating how many leads it produces is critical to measuring your website’s engagement. As discussed with Mansoor Bhanpurawala, if the TLR is 12:1, one visitor gets converted out of the twelve visitors to the website.
Customer Retention Rate: It is related to the percentage of difference in the number of customers you gained through the period from the number of customers you ended the period per the number of customers you started.
Brand Search Lift: This defines how much the brand awareness has increased over the period due to the digital marketing efforts. A critical metric is the brand recall value that digital marketing has established.
Thus measuring results is essential. If you have engaged a digital marketing company in delhi to improve your digital reach, make it a practice to measure the ROI metrics.