Marketers spend a lot of time collecting and measuring data. This allows them to judge the effectiveness of their marketing actions and strategies.
However, it is not enough to collect and analyze numbers at random, you must evaluate the indicators relating to your objectives.
To analyze the impact of your digital marketing , here are 5 indicators to follow!
1- Customer value
This indicator corresponds to the net profit that your company generated thanks to the purchases of a customer during all the duration of your collaboration.
Average transaction value X average purchase frequency X average length of your relationship with the customer
To improve this indicator, work on your retention rate by setting up a loyalty program . You can also promote complementary products to the customer’s purchases or encourage them to move upmarket.
2- The customer acquisition cost
This value corresponds to the expenditure necessary to attract and convert a prospect.
Total customer acquisition cost/number of customers gained over a given period
The traffic generated by your social networks and websites must imperatively be converted into turnover. To this end, don’t forget to include calls-to-action on your pages and lead your social media subscribers to your landing pages.
Tell yourself this: the lower your customer acquisition cost , the higher your profits.
3- The ROI of your marketing strategy
The more complex your marketing mix, the more touchpoints there are to consider and track.
Four common sales attribution methods can help you determine ROI:
- Single attribution : All value is attributed to the first or last touchpoint of a sale.
- Multiple attribution : multiple touchpoints are considered to have participated in the sales process. A value is then assigned to each of them.
- Test group : allows you to measure the effectiveness of a campaign on a given sample.
- Marketing Mix Modeling : Allows you to collect data and make projections to get accurate forecasts.
You can choose one or the other of the calculation methods, depending on your activity or your type of campaign.
4- The conversion rate of your traffic into leads
This indicator is simple: how many leads or users have you gained through your various conversion channels?
Following the calculation of this KPI, your objective must be to increase your traffic, but also your conversion rate.
If your traffic is high, but the transformations are not following, consider investing in the optimization of your conversion funnel.
Conversely, if you have a high conversion rate but low traffic, increasing the number of visitors to your site is the right strategy to adopt.
5- The conversion rate of your prospects into customers
Your leads must become customers.
You can measure this indicator using the following metrics:
- The performance of your marketing emails
- Your subscribers’ engagement with the content you send them
- The actions that go in the direction of your objectives (request for a demonstration, addition of articles to the basket, registration for a trial period, etc.)
- The time it takes for a lead to become a customer
To get more conversions, segment your leads to offer them personalized content.
For an effective analysis of your digital marketing, follow these indicators on a regular basis: at least once a month. Develop a report and learn from it to continuously improve your results.