Digital marketing metrics and key performance indicators (KPIs) are quantifiable values that are used by marketers to gauge the performance of their marketing campaigns. Tracking the success and performance of a campaign across multiple channels isn’t easy, but with the right digital marketing KPIs, the process can be streamlined.
To help you determine your targets and goals, here are five performance-based metrics that every modern marketer needs to know.
1. Cost per lead
Cost per lead is a widely employed digital marketing metric that can help you understand how much money it took on average to generate a lead. To calculate CPL, simply take the total spend for a marketing campaign and divide it by the number of leads generated.
This metric can help you reach your desired ROI faster as you know exactly how much money it takes to acquire a new lead.
2. Website traffic leads
‘Website traffic leads’ is the ratio of visitors to your sites that translated into leads. It can help you understand what customers like about your website and develop strategies to make them stay on your site longer.
3. Returning visitors
New visitors are people that view your site on a new device for the first time. Returning visitors are those that use the same device to revisit your site. Returning visitors is an important metric as it directly translates into brand retention.
4. Online conversion rates
The conversion rate is a metric that reflects the percentage of users that carried out a desired action. This action could be signing up for a mailing list or engaging with buyers on the platform, but it’s usually when the visitor purchases a product.
The global average e-commerce conversion rate stands at 4.31%, but top e-commerce sites have a rate nearly double this number—and that’s what you should be aiming for too.
5. Customer lifetime value
The lifetime value of a customer represents the total amount of money a customer is likely to spend on your brand and its offerings during their lifetime. This can help you determine exactly how valuable a customer is—and consequently determine a reasonable cost per acquisition.
This metric helps businesses take a long-term approach as the money you spend to acquire a customer must bring value to the company, not just during the first purchase but over a lifetime.
Need help implementing a digital marketing campaign?
If you’re looking to implement an effective digital marketing campaign, work with the experts Mediaforce. The digital marketing agency in Ottawa has helped brands implement successful advertising campaigns since 1996.
For more information, call 613-729-0500 or request your free initial consultation now.