This post was originally written in 2014, but was updated in late 2017 for accuracy and comprehensiveness.
There's nothing more frustrating that pouring hours, days, or weeks into any professional effort and then never getting any feedback or update on the results of those efforts. It's no different with digital and inbound marketing efforts. If you and your team are spending time on digital marketing and money on marketing automation tools like HubSpot, you want to know if it's actually working. Luckily, there are all kinds of tools and tricks to help you quantify your results. Here are four absolutely essential metrics for inbound and digital marketing measurement:
Whether you just started working in digital marketing or have been here since the beginning, you've heard questions about your Return on Investment, or ROI. If you're not measuring your ROI, the bottom line is that you don't know if anything about your efforts are working. With each new digital marketing strategy, be sure you have a baseline measurement for whatever goal you're hoping to achieve (revenue, sales, leads, awareness) and watch it change as you implement your new strategies. That change, divided by the cost of your efforts in people, time, and advertising, is your ROI. Measure it. Nurture it. Improve it.
- Conversion Rate
When it's working right, your website should act as a conversion machine that brings in leads and spits out customers. In the real world, not everyone that goes to your url is going to become your greatest fan. But when you keep track of your conversion rate, you can boost the percentage that do. If you're watching site visits climb but not seeing your sales increase, you conversion rate is actually going down. By keep track of this, you can deduce that maybe you're not being targeted enough with your efforts because you're getting people to your site, but they're not converting. With this information in hand, you can make adjustments to your strategy.
- Cost per Lead
Your sales team is already in the business of tracking your leads. As a marketer, your job is to be able to explain what those leads cost and then try to lower that number. That means calculating your Cost per Lead (CPL). There's no magic number that means you're spending the right amount on your leads. Only your own marketing numbers will be able to tell you that. Of course, to be the most cost efficient, you will want to spend as little as possible to get as much as possible. But you can't know what that is unless you are also tracking.
- Revenue per Lead
Your Revenue per Lead is the actual income generated from each lead you generate, on average. Of course, not every lead will convert and become a customer but if your Revenue per Lead is high, then you're doing something right. If it's too low, you're getting leads that are turned off somewhere along the way. Use your analytics to figure out where and fix it.
If you're measuring these four digital marketing metrics you are off to a great start and can continue to shape new campaigns and content to better grow your efforts and streamline your efforts based on your budget.
If you are interesting in knowing more about how digital and inbound marketing work to grow your business in a measurable way, contact us today to schedule an inbound marketing assessment for your business.
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