There is no use in working on something if you do not measure the result. Likewise, digital marketing ROI should be measured too. There are many metrics to measure digital marketing ROI but from that huge list we have put together a list of 10 basic metrics that would help you measure ROI. Determining ROI is not that easy as it sounds to be, this could be similar to a fight against the mighty Thanos. It takes the right metrics to measure the ROI like the Ironman to destroy Thanos. There are many metrics but it takes the right metrics, the basic ones that help you in measuring the efforts you put in. Even the God of thunder is helpless without his Mjollnir. So putting Avengers stuff aside, let us look into the basic metrics that determine the ROI in Digital marketing. CPL (Cost per lead) Close rate CPA (Cost per acquisition) AOV (Average order value) Conversion rates through channel Conversion rates through the device Performance of your landing page Content click-through rate Year on year comparison Brand searches with high click-through rates CPL (Cost per lead) It is important to know how much you pay for a lead. For each lead make sure to check if it has become a conversion. The cost per lead can be also known as online lead generation. To calculate the cost per lead you will have to divide the total number of marketing leads with the new leads. This will result you with the cost per lead. The cost per lead is measured to know how cost-effective your marketing campaign is. Close rate Close rate is the percentage of leads that turn out to be conversions. Most of the close rates are being calculated offline which means the data that has been collected are not up-to-date. It is important to keep an eye on the close rates as it will be useful in checking the leads that have been newly generated. When you do that, you will be able to know if your efforts are worthy or not. To calculate close rates you will have to divide conversions with leads and then multiply with 100 to know the percentage. CPA (Cost per acquisition) Cost per acquisition is the metric used to measure the cost that has been acquired on a single payment from the customer. To be more theoretical the formula for cost per acquisition is the cost incurred divided by the total number of sales. This is one of the most important metrics that will determine the return on investment for your effort. AOV (Average order value) Average order value is the average cost that is being spent by the customer for every transaction. To calculate the average order value, Total revenue / number of orders = average order value. When there is an increase in the average order value, it will give you better returns. Conversion rates through channel There are many channels from which your site will receive traffic. With the conversion rates through channel metrics, you will be able to identify from which channel there are more conversions and the ones that result in poor conversion rates. Conversion rates through the device Similar to conversion rates through channel, it is important to check conversion rates through the device as well. Since the number of users has been increased, it is important to calculate which device gives you a better conversion rate. If it is mobile, make sure the site is well responsive to mobile devices. The desktop and the mobile version are to be treated equally. Performance of your landing page The users decide whether to convert or to bounce back looking at the landing pages. Landing pages always hold an important role in the conversion of a visitor into a customer. So it is important to calculate the landing page performance. When the landing pages are well designed and they reduce bounce rate and improve conversion rates. The Landing page is like the direction poll that shows the passenger to travel. If the direction poll is lost the traveller is lost too. So the landing page should be informative and should have valid information. Like you check the performance of other pages it is important to check the landing page as well. Content Click-through rate Content helps in achieving better traffic but there are many chances for the readers to simply exit without converting. So the bounce rates for content can be high at times. But that doesn’t mean the site should be left without a content section. A Content section is a place where the user gains trust in a website. When the content section is up-to-date then it will have better respect from its users. Year on year comparison When you compare the data it is important that you compare it with a breathing period. Month to month or week to week comparison may differ due to the seasonal changes, holidays or any other events during the month. For instance, if you compare the data for the month of November and December, they both will have different results as December is a seasonal time and November is not. So it is better if you calculate the difference year after year, as the year will have all the seasons and holidays. Differentiate between Brand and non-brand searches with high click-through rates It is no doubt that the users will go for the brand searches as they are already familiar with them. So it is important to differentiate both brand and non-brand searches so that you can know the ones that are not performing well. Coming to an end, these are the basic metrics one should know to measure the digital marketing ROI. So, have you checked and are you getting ROI. If you have gained a better ROI, way to go. If you haven’t don’t you worry, you can do it. If you find it difficult or if you are not getting better returns even after trying really hard, feel free to contact us by filling a form and we will get back to you. As we are a NASSCOM accredited ISO certified White label digital marketing agency in India with years and years of experience will be glad to help you out of the situation with the most experienced professionals with capable knowledge in the sector.
There is no use in working on something if you do not measure the result. Likewise, digital marketing ROI should be measured too. There are many metrics to measure digital marketing ROI but from that huge list we have put together a list of 10 basic metrics that would help you measure ROI.
Determining ROI is not that easy as it sounds to be, this could be similar to a fight against the mighty Thanos. It takes the right metrics to measure the ROI like the Ironman to destroy Thanos.
There are many metrics but it takes the right metrics, the basic ones that help you in measuring the efforts you put in. Even the God of thunder is helpless without his Mjollnir. So putting Avengers stuff aside, let us look into the basic metrics that determine the ROI in Digital marketing.
It is important to know how much you pay for a lead. For each lead make sure to check if it has become a conversion. The cost per lead can be also known as online lead generation. To calculate the cost per lead you will have to divide the total number of marketing leads with the new leads. This will result you with the cost per lead.
The cost per lead is measured to know how cost-effective your marketing campaign is.
Close rate is the percentage of leads that turn out to be conversions. Most of the close rates are being calculated offline which means the data that has been collected are not up-to-date.
It is important to keep an eye on the close rates as it will be useful in checking the leads that have been newly generated. When you do that, you will be able to know if your efforts are worthy or not.
To calculate close rates you will have to divide conversions with leads and then multiply with 100 to know the percentage.
Cost per acquisition is the metric used to measure the cost that has been acquired on a single payment from the customer. To be more theoretical the formula for cost per acquisition is the cost incurred divided by the total number of sales.
This is one of the most important metrics that will determine the return on investment for your effort.
Average order value is the average cost that is being spent by the customer for every transaction.
To calculate the average order value, Total revenue / number of orders = average order value.
When there is an increase in the average order value, it will give you better returns.
There are many channels from which your site will receive traffic. With the conversion rates through channel metrics, you will be able to identify from which channel there are more conversions and the ones that result in poor conversion rates.
Similar to conversion rates through channel, it is important to check conversion rates through the device as well. Since the number of users has been increased, it is important to calculate which device gives you a better conversion rate. If it is mobile, make sure the site is well responsive to mobile devices.
The desktop and the mobile version are to be treated equally.
The users decide whether to convert or to bounce back looking at the landing pages. Landing pages always hold an important role in the conversion of a visitor into a customer. So it is important to calculate the landing page performance. When the landing pages are well designed and they reduce bounce rate and improve conversion rates.
The Landing page is like the direction poll that shows the passenger to travel. If the direction poll is lost the traveller is lost too. So the landing page should be informative and should have valid information.
Like you check the performance of other pages it is important to check the landing page as well.
Content helps in achieving better traffic but there are many chances for the readers to simply exit without converting. So the bounce rates for content can be high at times. But that doesn’t mean the site should be left without a content section. A Content section is a place where the user gains trust in a website. When the content section is up-to-date then it will have better respect from its users.
When you compare the data it is important that you compare it with a breathing period. Month to month or week to week comparison may differ due to the seasonal changes, holidays or any other events during the month.
For instance, if you compare the data for the month of November and December, they both will have different results as December is a seasonal time and November is not.
So it is better if you calculate the difference year after year, as the year will have all the seasons and holidays.
It is no doubt that the users will go for the brand searches as they are already familiar with them. So it is important to differentiate both brand and non-brand searches so that you can know the ones that are not performing well.
Coming to an end, these are the basic metrics one should know to measure the digital marketing ROI. So, have you checked and are you getting ROI. If you have gained a better ROI, way to go. If you haven’t don’t you worry, you can do it.
If you find it difficult or if you are not getting better returns even after trying really hard, feel free to contact us by filling a form and we will get back to you. As we are a NASSCOM accredited ISO certified White label digital marketing agency in India with years and years of experience will be glad to help you out of the situation with the most experienced professionals with capable knowledge in the sector.