Metrics

Metric is a measure that would facilitate the quantification of any particular characteristic or a product or an entire business. To ensure whether a project is going in the right direction towards its goal, keeping track of the achieved milestones is absolutely necessary. And, anything that confirms the success of the business would be considered as a metric or a business metric.

Every business unit of a company requires specific performance metric to monitor its progress such as social media metrics to track marketing or customer acquisition cost metric to track software as a service business. It can also be referred as KPIs (Key Performance Indicators) which are the performance metrics measuring the effectiveness of a company trying to achieve its business objectives.

One of the most important business unit responsible for taking out the product to its customers is Marketing! Most established brands in the market advertise their products with mission and usefulness to the consumers. This advertising is crucial in building a market reputation. Digitization has simplified marketing in a way that reaching out to the users is easy and quick. However, tracking the success rate has become more convoluted than ever before. Having a relevant set of marketing metrics is fundamental to understanding the success or failure of a campaign by the marketing team within an organization. It displays dedicated effort and results that a marketing team achieves to the company’s executives, which is also used by other business units as the basis of all decision making.

Marketing Metrics

To understand the pattern of investment and its return, concrete marketing metrics are useful in analyzing the cost – revenue structure that provides insight to overcome unpredictability. These measurable metrics aligns a company’s progress towards its target goal that ultimately leads to more customer satisfaction, increased loyal customers, a better product and ultimately more revenue.

1. Social Media Metrics

These metrics measure the performance of social media campaigns that help in driving users to their own channels of product delivery. Social media teams use a number of social media channels to contact their customers which sometimes make it difficult to track the success of campaigns since the data and results are found in multiple locations. These metrics help in identifying right social media channels and optimizing strategies to gain large user base.

Metric Measure Result
Social Networking Followers (Twitter, Facebook, LinkedIn) Keeps track of user engagement based on key demographic Measures the popularity of an organization
Followers Growth Measures the number of new followers gained on social media over a specific period of time – Understanding your followers

– What works for marketing on social media and what doesn’t

Social Events Monitors events on social media streams (likes, reposts, mentions) – Growth of organization

Engage more audience

More sophisticated channel for interaction

New Visitors & Lead Generation Measures the effectiveness of social media campaigns in driving visitors to the product’s website Justifies return on marketing investment for social media campaigns
Social Media Ad Campaigns Performance Measures campaign performance for the selected dates Verifies right audience is being approached via ads

Controlling expenditure for ads

Social Media Shares/Likes/Retweets Measures the effectiveness of social media campaigns at fostering positive engagement

 

Maps social media interactions to marketing goals

Increased and sustained user engagement

Marketing content becoming viral

 2. Digital Marketing Metricsdigital-marketing-1497211_1280

Having specific digital marketing metrics makes it easy for marketing teams in determining a right methodology to reach targets and, improve performance by aligning strategies towards users interest.

Metric Measure Result

Unique Visitors

Tracks the number of ways users become aware of the website/product and the level of engagement. Average Time Per Visit & Number of Pages Per Visit

Clear understanding of traffic sources that are driving high-quality traffic

Returning Users Tracks number of users returning to product’s website multiple times

Effectiveness of Content Marketing Efforts

Average Browse Rate (pages per session) & Average Time on Site

Increased loyal customers

 

Website Traffic Lead Ratio Measures count of visitors converted to leads

Traffic Lead Ratio = Leads : Website Visitors

Quality of website traffic

Provides website performance

 

Net Promoter Score Measures customer’s willingness in promoting your product or service to colleagues or friends

NPS = Proportion of Detractor Scores – Proportion of Promoter Scores

Enhances focus on customer satisfaction

Promotes customer referrals, retention and expansion rates

Optimizes performance over time

Brand Awareness Value of the brand on social media and search engines Ranking of your product in the market

Growth in number of fans/followers

Device Tracking Tracks device being used by users to visit the website More focus on optimal user experience

Easy division of advertising budget across devices

Online Conversion Measures effectiveness of converting online audience into paying customers

Conversion Rate (%) = (# of Conversions / # of clicks) *100

Awareness of which features/content/ products are not working well

Concrete measure of number of users within purchase funnel or prospect paid customers

Cost Per Lead Measures cost-effectiveness of marketing campaigns while generating new leads

CPL = Cost of Generating Leads / Total Leads Required

Accurate estimate of money to acquire new leads

Return on marketing investment data

Monitors AdWords, banner ads campaigns, social ads or sum of marketing efforts

Web Traffic Sources Tracks the traffic sources that drives visitors to the website, providing comparison of all those sources

1. Direct   2. Referral         3. Search   4. Campaign Traffic

Provides granular information of web traffic

Ability to maintain multiple traffic sources

Minimizes risk of website decimation if other sources fail to drive traffic

External Website Links Measure hyperlinks on other domain referring to your product’s website against competitors Clear picture of Website Ranking

Traffic Volume Improvement

 

3. Search Engine Optimization Metrics

These metrics measure the performance of a product’s website for organic search results. Tracking search engine metrics regularly helps a marketing team in understanding search marketing performance and identifying top search keywords, high performing pages and which parts of company’s website needs optimization for search.

Metric Measure Result
Landing Page Performance Tracks traffic generation sources  leading to more traffic to product’s website Targeting right target customers

Setting clear expectations

 

Website Linking Measures number of hyperlinks from other websites navigating to your own product’s website Improves page rank

Acquiring quality backlinks/inbound links

Driving relevant traffic to the website

Click Through Rate Measures the effectiveness of your listings at prompting clicks or

Number of times website/other listings generate clicks on Search Engine Result Pages

Optimization of search keywords and meta description

Forecasting data to help in rationalizing budgets, resources, and time commitments

Keyword Ranking Measures search engine rankings for targeted keywords and analyzes trend with time Information on website ranking on Google

Identifying positive and negative impact of search engine optimization efforts

Selecting right keywords

Organic Search Traffic Identifies natural placement rank on organic search engine result pages Improving website link popularity

Awareness of competitors ranking

Improvement in search keywords

 

4. Email Marketing

To measure the performance of email marketing efforts, monitoring campaigns closely is important. By understanding what’s working and what isn’t can help drastically improve email marketing results. Having an understanding of campaign performance through email marketing metrics helps in real-time improvements of marketing efforts.

Metric Measure Result
Email Statistics Tracks the performance of current campaigns and ways to improve ROI on other campaigns Ability to create targeted content

Better understand subject, content of emails

Number of leads generated from email

Email Subscriptions Tracks reach of email’s content, demographic of subscribers Identify active, bounced, unsubscribed, subscribed, unconfirmed, deleted users
Email Engagement Tracks open and click rates of published emails by users Indicates if content resonates with email users and message relevance
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