To make your marketing campaign a success it is important to consider the right metrics and understand the relationship between them. This will provide you with insights on how to adjust your campaigns in an agile way.
Before you consider the key metrics for your digital marketing campaigns, make sure you adopt an agile marketing approach where all your campaigns are ‘minimum viable campaigns’. This means that you won’t need weeks or months, but that you are ready to launch in days and to measure effectiveness on the go so that you can focus on what works.
Key performance indicators
The key performance indicators of your digital marketing campaigns should give you a clear measure of success and show where to focus your efforts.
When designing your KPIs consider the overall business objectives first. These can include brand awareness, number and quality of customer interactions, leads and sales.
Your KPIs will closely reflect your marketing funnel with specific indicators for each level of the funnel (i.e. engagement, visits, clicks, leads and conversions).
Let’s see what indicators to consider for each level of your funnel.
Engagement
Here you want to consider the number of likes, shares and comments from your customers and prospects to see how effective is your proposition online.
Key engagement metrics:
Number of likes
Numbers of shares
Number and quality of comments
Cost per engagement = cost of your campaign divided by the total number of engagements
Clicks
Here you want to see how many people are clicking on your proposition and visiting your site or landing page.
Key click metrics:
Number of clicks
Click Through Rate (CTR) = number of clicks over the number of impressions
Cost Per Click (CPC) = total cost of campaign divided by number of visitors
Leads
Whether you are offering a free product trial or a free content asset online you will likely have a lead form through which you are capturing your lead data.
Key lead metrics:
Number of Leads
Lead Rate = number of leads divided by the number of clicks into the landing page that hosts your lead form
Cost per lead = total cost of campaign divided by number of leads
Conversions
At the end of the funnel you will look at conversions or the number of sales achieved through your marketing campaigns. This is one of the most important metrics for your marketing campaign.
Key conversions metrics:
Overall number of conversions
Conversion rate = number of conversions divided by the number of leads
Cost per conversion = total cost of campaign divided by number of conversions
Once you have all this information, the key is to understand the relationships between the metrics and identify what you can improve, where you need to focus your marketing efforts and which channels produce the majority of revenues.
For example, here are some scenarios that can provide good insights on what to do to improve your digital marketing campaigns:
If the level of engagement is low, you might want to reconsider your messaging;
if your campaign has a lower than expected number of impressions, you may want to re-consider your targeting criteria and select a more relevant audience;
if you are not satisfied with your click rate, then you can focus on improving your creatives.
If you are experiencing a low conversion rate, this could depend on the design and performance of your landing page or on the follow up process.
Remember, when designing your key indicators for your digital marketing campaign, have an agile marketing approach and be ready to adjust along the way to focus on what works.
If you need advice on your digital marketing strategy get in touch today.