Digital Marketing Metrics: An Outstanding Business ToolDigital & Innovation | 02th September 2015
Being marketing enthusiasts ourselves here at Hi INTERACTIVE, it is only tempting to forget that all marketing efforts are actually meant to reap results: clients will be understandingly reticent to invest their time and money crafting an effective marketing strategy unless they can yield tangible results. The good news is that unlike pre-digital time, digital marketing metrics provide a most effective tool to see exactly where your efforts are headed and where you should be focusing. Here are metrics explained plainly in a few paragraphs:
What are digital marketing metrics?
We can define metrics as a measurement system that allows to quantify a trend, a behavior or a business variable, thus making possible to measure and evaluate any marketing campaign. After all, the trick is not just in creating a great, memorable marketing campaign: as a client, one has to be able to determine whether that particular campaign is causing the right kind of impact. Before digital came into the picture, a number of metrics that could be employed was much more limited than nowadays, since there was a series of physical limitations to tracking your users’ behavior. With new tools, such as Google Analytics, making it possible to study your audience in thousands of different ways, the challenge has moved to being able to discern exactly which digital marketing metrics are most interesting to your particular goals. While we are always delighted to help our clients through this process, here are a few useful tips to reflect on.
Which digital marketing metrics should you use?
The answer to this question will depend as much on your own position within your company as your company’s goals: if you need something concrete to prove that you have done your homework well and your digital marketing strategy is paying off, then Return on Investment (ROI) might just be the right way to go. Obviously ROI has a metric of success has been around long before digital, but now it might just be easier than ever to measure; in the same spirit, you can also decide to focus on your Customer Lifetime Value, if you are looking to increase your investment in some clients while divesting in others. But if pure digital marketing metrics are what you’re interested in, here are a few you may consider taking on board:
- Traffic sources – There are currently 5 different kinds of source which can feed your website: direct traffic (direct searches for your website); social traffic (social networks); organic (traffic redirected from Google and other search engines) and finally, paid traffic (basically, the result of your investment in Google Adwords or other kind of online advertising).
- Bounce rate – Refers to the rate of users who enter your website and elect to leave, instead of moving on to other pages or areas within it. Bounce rate allows you to see how (in)effective your website actually is.
Why are digital marketing metrics so important?
Finally, it is important to understand that you are now operating in a market whose rules are constantly changing, so much so that it is even hard to write down formulas for success, since the corresponding algorithm keeps changing. Digital marketing metrics allow you to leverage your competitive advantage and gain a better understanding of your company’s current position in the market, while also helping your decision-making. Digital marketing metrics will help you to pinpoint new opportunities and figure out the necessary investment to deliver on them. Just by selecting your metrics, you’ll already have an extra help to keep focused on your target market and target users. Metrics will also allow you to measure your strong suits and weakest links, both in terms of your current strategy and its execution. It is also possible, through digital marketing metrics, to evaluate your investment needs and check if they are adequate or need some reinforcement. Finally, in a very general way, digital marketing metrics allows you to tweak your strategy as it unrolls, correcting minor mismatches before those sink your entire strategy. One undeniable advantage of any digital marketing strategy is that failing becomes incredibly cheaper than failure in a traditional marketing setting, and so any failures are also much more easily corrected.
In need of some help to navigate the brave new world of digital marketing metrics? Our team will be happy to be of service: contact us.