Today’s competitive business landscape is all about content marketing. Measurable results and accountability have become the cornerstones of marketing success. Few marketers, on the other hand, are aware of the wide range of indicators that may be used to assess marketing strategies and dynamics. Even fewer people are aware of the advantages, disadvantages, and intricacies of each.
In this scenario, it is recognizable that the marketers, managers, and business students want a thorough, practical reference on the metrics used to evaluate and quantify marketing activities. From social media management to lead creation and cold emailing, digital marketing involves a wide range of tasks.
Progress is unmeasurable unless you receive real-time feedback on the effectiveness of your initiatives. Furthermore, in the lack of feedback, you never know if you are doing things correctly. This is where Marketing Metrics come into the picture, to save time and energy and do things in the right way.
What Are Marketing Metrics?
Marketing Metrics is a survey report value utilized by the marketing team to determine the impact of recently held marketing campaigns from all the platforms. It includes digital marketing performance, SEO progress, or even your social media growth, this report will help you to track your progress and grow in the right direction. You can also use this report to plan your marketing strategy.
7 Most Important Marketing Metrics for Your Team
Following are some top metrics that surely help your marketing team:
Brand awareness can be described as how well your brand is known to your targeted audience and how well they can recognize it among your competitors. Brand awareness is the result of your effective marketing campaign. Brand awareness is a strong marketing technique that causes customers to acquire an impulsive preference for a company as well as its services.
Marketing Qualified Leads (MQL)
A marketing qualified lead is a customer lead that is attracted by marketing efforts and can turn into your potential customer. An MQL is mostly a lead that has willingly connected with your business by entering contact information, opting into a program, adding eCommerce products to a shopping cart, downloading documents, or visiting a website many times.
Sales Qualified Leads (SQL)
A Sales Qualified Lead is a customer lead that is attracted by the Sales team and can turn into your potential customer. An SQL displays an intent to buy the company’s products and meets an organization’s lead qualification criteria that determine whether a buyer is a right fit or not. Once the prospect goes beyond the engagement stage and is about to be tagged as a conversion, then the label is applied.
Funnel Conversion Rates
Funnel Conversion Rate is the ratio of the total number of website visitors who get attracted to your business through advertising and the total number of visitors converted into potential customers.
The customer engagement matrix is the report of the number of customers how much time they spend on your website in one visit (generally known as “user session”). This will help you to understand which page is having higher visitors and which is having lower visitors.
Marketing Spend Per Customer
Marketing spends per customer or Customer Acquisition Cost (CAC) is the total amount spent on marketing for customer acquisition. It can be calculated by the total amount spent divided by the total customers acquired. For example, If the total expense for marketing is $100 and the company acquired 50 customers then CAC will be $2 per customer.
Return On Marketing Investment
Return on marketing investment or ROMI can be defined as the revenue generated by a marketing campaign. It means the percentage of revenue generated or revenue growth after a successful campaign. The formula for such calculation is subtracting marketing expenses from total revenue and then dividing total revenue by marketing expenses. For Example, if revenue growth is $2000 after marketing and the cost of marketing is $200 the ROMI is 200%.
What Is The Need For Metrics?
Numerical fluency is a necessary talent for today’s corporate leaders. The managers should go out of their way to quantify market opportunities and competitive risks. They must be able to justify the costs and advantages of their actions. In mathematical terms, they must analyze plans, explain deviations, judge performance, and find leverage areas for improvement. These tasks need a solid understanding of measures, as well as the methods and formulae that produce them. In a nutshell, they necessitate the use of measurements.
Importance Of Metrics
So, what can be considered as the right marketing metrics? The right metrics are the ones helping you track your brand name or product name. This way, you will know if any of your marketing campaigns are working correctly or not? Just like marketing, choosing the right metrics plays a huge role in your success. There are many types of marketing metrics you should be tracking to determine the success or failure of your marketing campaigns. These metrics need to be analyzed and reported in a way that will provide meaningful results to help shape future campaigns.
By measuring and analyzing the right marketing metrics through the marketing reports, you can predict campaign performance and plan accordingly. Rather than depending on luck and praying your strategy succeeds, you can utilize marketing metrics reports to plan a campaign that is sure to be a hit with your target audience.
Increased Return On Investment (ROI).
Once you’ve determined that a certain technique is effective for your target audience engagement, you may spend the majority of your resources on it to optimize and increase ROI and eliminate others.
Only a strong focused marketing metrics strategy is the way to justify your decisions and demonstrate your capabilities in this market. Even if you face failure in your campaign, being able to understand what went wrong (and what you can improvise) can provide you with useful information about your target demographic.
Examples Of Marketing Metrics
As the marketing metrics are the numerical values of reports generated from the marketing campaign, here are some examples where you can get that report and plan your marketing strategy for better business growth.
Your business or product or service promotion is done via a direct messaging channel i.e. Email is known as Email marketing. Email marketing is done by sending some commercial messages to your customer list that allow you to inform and update them for your service change. The report generation for email marketing is done via:
- Opening rates: How many individuals did you get to see your email?
- Click-through Rates: How many people responded to your email by clicking on a link?
- Per-click earnings: How much money does a single email/link click bring in?
Content marketing is a strategic marketing technique that focuses on producing and delivering valuable, relevant, and consistent content to attract and maintain a specific audience – and, eventually, to generate lucrative consumer action. The metrics for content marketing can be measured by:
- Traffic: How much traffic have you generated after releasing new content to your site.
- Conversions: How many people became a customer after taking a certain action on that new content.
- User Demographics: Age, gender, location will get added to your report after studying the matrices.
When a company uses social media platforms to sell its products and services, then it is referred to as Social Media Marketing (SMM). Companies may use social media platforms like Facebook, Instagram, Twitter, or any other trending platform for marketing purposes to communicate with existing consumers and reach out to new ones while promoting their desired service or product. The Social media marketing matrices can be measured via:
- Customer Reach: The number of people who saw and read your content.
- Customer Engagement: The number of people who read your content and responded to your CTA by taking action to interact with your content.
- Customer Conversions: How many people became a customer after interacting with your content.
If you want to increase brand awareness, the best way to do it is by having a lot of effective marketing metrics. Marketing metrics are significant factors that affect the performance of a company in the market. The chances of any business to increase in revenue will be based on the industry metrics they have.
The easiest way to figure out the marketing metrics matter for your business and how to best measure them is to start with some examples, dive deeper into them, and once you figure out what their formulas are, you can create your formulas and calculations that better fit your specific needs.
Marketing metrics play an extremely important role in running an effective campaign. These metrics measure the effectiveness of your campaign and give you insights into how to improve and optimize them for greater marketing effectiveness and return on investment.