Digital marketing is the marketing of a website, application, or another online service. It involves the use of technologies such as email and social media to promote products and services. The benefits of digital marketing include improved customer satisfaction and better conversion rates, increased brand awareness, increased sales, and reduced cost.
Digital marketing has become an essential part of our company’s strategy. We understand that digital marketing is important in building our brand and identity, but it’s also important to us that our business owners are able to measure its success in terms that their customers can understand.
The metrics we look at are:
- Sales (yearly)
- Customer Satisfaction (monthly)
- Customer Lifetime Value (monthly)
- Conversion Rate (monthly)
- Cost per Customer Acquisition
What are digital marketing metrics?
Digital marketing is a crucial part of any business. To reach your customers, you need to create a digital marketing strategy that drives your business goals. While the term “digital marketing” has become so ubiquitous it’s hard to tell the difference between digital and online marketing, it’s important to learn what digital marketing means to a business owner.
The Digital Marketing Strategy
Digital marketing is different from traditional marketing because it has no measurable goals. For example, if you have customers who are already considering your company as a brand they would like to use in their social media profiles, you have achieved some goal. On the other hand, if someone who doesn’t know anything about your company makes an inquiry via Facebook or Instagram and you don’t know what they are talking about, then you have failed in your digital marketing strategy.
Therefore, there needs to be a clear plan for how your digital marketing should work for each type of user. This can help companies identify which channels are most effective for reaching their target audience and figure out how much time and effort is necessary for each channel (which channels are likely to fail). Once you know which channels work best for your company’s goals, it’s important that you set a budget for these programs so that you can measure metrics accurately and provide top-quality service to your customers in the shortest amount of time possible.
The importance of measuring
Digital marketing is one of those words that can make you feel like you should know all about it. But, as with a lot of things, it’s not as simple as a simple “yes/no” answer. You have to think about the metrics that matter most to your business and figure out how to measure them consistently. A few things are worth mentioning here:
Time dedicated to investing
Digital marketing is an ongoing process, and so the metrics you track will reflect how much time you spend interacting with users. A good way to consider this is the “user-per-hour” metric (which measures the number of interactions per hour), but there are other more specific metrics like session duration or conversion rate that provide a sense of how much time users spend with your brand or product. You can also look at user behavior (like whether they click on one link or another) and web traffic (like total pageviews).
Budget to set aside
Digital marketing has both direct cost and indirect cost associated with it (i.e., time spent reaching out to users is one form of indirect cost). The amount of time spent reaching out to users can be a direct cost or an indirect cost depending on your goals. You can look at direct costs like paying people to reach out and tap into their networks; but if you want more traffic from those same individuals, you would need direct costs in addition to the indirect costs associated with it. If direct costs aren’t an option for your business, you’ll need to look at indirect costs; for example, making sure your website is optimized for mobile devices is an indirect cost since those devices are far less responsive than desktop platforms.). Indirect costs include things like using social media effectively (because social media isn’t just about acquiring new leads) and understanding where people are coming from when they visit your site (because not everyone comes from Facebook).
Return on Investment
In order for digital marketing campaigns to take effect (i.e., generate value), there must be some return on investment: something tangible both in terms of generated leads or sales calls and in terms of improved brand awareness and SEO rankings. Although there is no set rule or formula for determining these industry-standard return on investment numbers, there are many approaches that work well across industries including using lead scorecards.
How to grow your business with digital marketing?
Digital marketing can be a powerful tool for growing your business. But it’s not enough to just look at the numbers. Numbers alone don’t tell you what to do next; they also don’t tell you how long it will take to reach your goals. You need to make better choices based on what other metrics are telling you. It is often easier to decide whether you should run a campaign or not on the basis of your current program than on its completion date. This is because digital marketing is a constantly evolving field and the techniques used today are likely to change in the future, so campaigns that were optimal for one month may no longer be effective today (and vice versa).
I am sure you know that a lot of businesses are nervous about getting into digital marketing. They are afraid that they will lose money on the first big push. They don’t want to make a big splash without understanding how the tidal wave of change will affect them
This article is not so much meant to be an introduction to meta-metrics; it is more an invitation for us to discuss types of data and their relevance in the context of digital marketing — and perhaps even a bit of practical advice on how to use them effectively.