Metrics: does it really matter what you track? This all-consuming topic has the enviable reputation of keeping online marketing managers and social media directors up at night. But, which metrics should you get excited about, and which should be consigned to the forgotten regions of the Internet?
The Difference Between Vanity And Actionable Metric
Basically, vanity metrics don’t translate into appreciable business value for your organization. In the world of digital marketing, vanity metrics include raw page views, time spent on the site and other engagement rates. Knowing that customers are spending time reading your content is great, however, such metrics often fail to provide the kind of clarity that facilitates revenue growth.
On the other hand, actionable metrics reveal why customers are choosing your product and tells you how you can improve their base experience. Essentially, actionable or operational metrics motivate actions that lead to measurable results in growth and profits.
The Most Important Metrics
So, which metrics should you track? The most important metrics are usually those that have a direct impact on revenue.
- A/B Tests allow you to track the conversion rates of two distinct versions of a web-page. You’ll want to track exit/bounce rates and pay attention to what visitors do while they’re on either page. Bounce rates quantify how many visitors immediately leave your website after a single-page session. The Google Analytics Channel report shows you which channels have high bounce rates so that you can modify your marketing campaign accordingly.
- Average Revenue Per User (ARPU), churn rates, and Customer Lifetime Value (CLTV) are three of the most crucial metrics you can track. CLTV measures future net revenue per customer. This information is crucial because it allows you to combine fiscal discipline with segmentation to increase revenue margins. With segmentation, you’ll know which customers are the most profitable, and you’ll be able to design specific campaigns that are aimed towards addressing their pain points.
- Conversion rates are another important metric. You’ll want to track how new site visitors convert from a lead to a customer. For example, how many new customers are providing their emails to download a white paper or a trial run of your product? It’s a good idea to track both new and return visitor conversion rates.
Return visitors behave differently: they may be ready to pay for subscriptions or to invest in your product. If your product meets or exceeds their expectations, you will increase your CLTV numbers. Many companies have succeeded in converting satisfied customers into future advocates of their brand. Thus, rising conversion rates are an important measure of marketing ROI.
- Campaign-specific performance metrics allow you to track how successful your marketing campaigns really are. This metric can be used to inform changes to your current campaign, if necessary.
How To Inspire Everyone In Your Organization To Care About Metrics
One way to inspire everyone in your organization to pay attention to metrics is to connect them to business goals such as raising brand awareness, improving customer experience, and increasing business conversions.
Metrics that track brand awareness include search volume data for your brand, website traffic, number of external links, social media shares, and reach. These metrics clarify how effective your blog articles, podcasts, webinars, social media postings, and multimedia videos are in increasing awareness of your product. Most importantly, they will help you design more effective marketing strategies for popular social media platforms such as Instagram, Facebook, Twitter, and LinkedIn.
Meanwhile, business KPIs (key performance indicators) that track sales revenue, market penetration, gross profits, and net profit margins reveal the true effectiveness of your digital marketing campaign. Sales revenue metrics (especially falling ones) prompt a deeper analysis of market conditions and provide an invaluable insight into company-wide employee performance.
Last, but not least, metrics such as net promoter scores, first response/ average handling time, and customer satisfaction scores will provide you and your colleagues invaluable insight into the consumer experience. For example, by tracking net promoter scores (to get this value, you subtract your detractors from your promoters), your organization will learn whether your brand and customer service delivery is resonating with your target population. If you are looking for better online results for your business, give the professional digital marketing agency at SocialSEO a call today.