15 key metrics that we should know before starting the Data driven marketing approach
February 6, 2019 |
About to implement data-driven marketing approach to your business? Stop a while!
Are you well aware of the key metrics of data-driven marketing approach? No? Then, first, you have to learn about them otherwise you can’t properly implement these strategies. Don’t worry! You have come to the right place. This post is dedicated to 15 key metrics that every marketer should know before start implementing the data-driven marketing approach. So, let’s start the discussion. Actually, the correct set of marketing metrics play the role of a GPS, as they can properly guide you in the direction of your marketing success. However, some of the marketing metrics are more critical than others. On the contrary, an incorrect set of marketing metrics, the overall marketing strategy can be quickly misguided and lost. Would you like to follow hand-written instructions and miss something? Or like to use a GPS that would accurately guide you on a real-time basis to your destination? The second option right?
The key metrics act in the same way for making a well-planned data-driven marketing strategy. Do you know? Almost two-thirds of major organizations opine that their executives treat data-driven insights as more valuable, as compared to their gut instincts. Nearly seven in ten leading marketers specify that their companies make use of data to provide support to decision-making at each and every level. Many leading marketers routinely take actions based on the insights plus recommendations from analytics. So, which key metrics you should be aware of before implanting data-driven marketing strategies? Just keep on reading this post to find out.
Conversion Rate: To keep it simple, the conversion rate is referred to the percentage of visitors, who complete a specific marketing action. After successfully completing a marketing campaign, you need to track the conversion rate of this campaign. As a result, you’ll get useful insights into the success of your content, your marketing campaigns, and so forth. Such insights will also help you prepare your next marketing strategy. For instance: data-driven marketers can use “Conversion Rate” to track the success of their landing page design or marketing offer. Suppose you set up a landing page to accommodate a gated e-book. Once all promotional efforts go out, the particular landing page gets a lot of traffic but very few prospective clients fill up your form to grab the offer. No space for disappointment is there. You need to dig out the actual reason. Such a low conversion rate specifies that, albeit the eBook is of a point of interest to your target audience, something is missing from your landing page. Now, your task is to start testing various elements of your landing page to improve conversions.
Website Traffic Sources: A lot of traffic sources point to company websites, ranging everything from social media and paid ads to organic web searches. And it’s the responsibility of marketers to track which sources draw most audiences so as to measure the marketing campaign success. With the proper review of this metric, your marketing team can easily determine which campaigns should be kept and which one be stopped. The common traffic sources that should be mandatorily tracked include paid traffic, organic search traffic, social media traffic, direct traffic, email marketing traffic, and referral traffic. After understanding the source of your website traffic, you can easily analyze the conversion rate of each and every traffic source. Thus you can take insights into channels plus campaigns that provide your website with the highest traffic. As a result, you can modify your marketing strategy and your marketing budget to focus only on those areas, yielding the most conversations.
Bounce Rate: You should always take care of this metric. A bounce actually occurs when a person visits your website from an organic search but unfortunately leaves your site after checking one page only. What does it imply? It indicates low engagement with the website contents. So, if you’re getting high bounce rates, it’s time to take some actions. There are two main reasons behind this scenario. One may be poor user experience and another is wrong visitor attraction through your content. You need to track your site’s bounce rate from the day-to-day basis to optimize your website strategically to keep your visitors engaged. Implement three quick tips below to alleviate bounce rate:
Review on-page analytics: Discover which of the elements are responsible for a lower click-through-rate and then optimize accordingly. You also need to adjust elements and copy. Then again measure if CTRs improve and bounce rate falls.
Check Thoroughly: You need to review pages that have the lowest bounce rate to find out which pages are successfully engaging website visitors. Ask yourself questions regarding your content structure and CTA. And then use these insights as a guide and adjust your contents on top exit pages.
Segment bounce rate: Your marketing team can also segment bounce rate by the traffic source, browser, gender, age, or device type to obtain further insights. For example: if a large number of mobile users bounce from a page in comparison with those using a desktop device, it indicates a poor mobile experience. Just view that page in a mobile browser and start fixing the issues to make it more mobile-friendly.
Social Media Engagement: Social media plays a pivotal role when it comes to marketing success. Social engagement metrics include post shares, the count of comments on social posts, and brand mentions. Your marketing team can learn a lot from social media posts having high engagement rates to prepare similar social content in coming days, drawing audience attention. The result is increased engagement.
Marketing Qualified Lead (MQL): The fact is that not all leads are equal. Data-driven marketers are well aware that the quality of leads matters more than the quality of the same. Hence, tracking marketing qualified leads or MQLs is very important. According to a recent study, B2B marketing teams most commonly use MQLs. An MQL is referred to a lead that would probably convert into a customer depending on their engagement with marketing contents. This particular metric depends on the factors, including web pages visited and content downloads. A worth noting factor here is that an MQL isn’t necessarily ready to communicate with your sales team. And they often require extra treatments to make them proceed through the sales funnel. Nonetheless, data-driven marketers can further engage Marketing Qualified Leads with a lead nurturing program as long as they become sales-ready.
Sales Qualified Leads (SQL): Sales qualified leads (also called SQL) are equally important as MQLs while it comes to the question of running a data-driven marketing strategy. An SQL is referred to a prospect, who has already indicated enthusiasm to purchase services or products of a company. In order to reach this particular stage, the SQL has fulfilled the lead qualification criteria to become ready for sales. And tracking Sales Qualified Leads via lead scoring is helpful for the sales team in converting more and more conversations with prospective clients into conversions. When it comes to MQLs, it’s critical to track which pages, channels, and campaigns produce the most SQL. Thus using this data, your marketing team can easily scale plus improve their lead generation efforts.
Cost-Per-Lead (CPL): Cost-per-lead or CPL, in terms of a tangible dollar amount, specifies how cost-effective your marketing efforts are throughout different channels. You can make use of this particular metric to analyze and figure out which campaigns to stop and which ones to properly focus on in upcoming marketing strategies. It’s obvious that the objective here is to achieve a low CPL with a great number of quality leads. In times of starting a marketing campaign, don’t forget to determine the amount of money you want to spend on a lead. Cost-Per-Lead differs with company size and industries. That means you have to properly research your target industry to set a benchmark.
Customer Acquisition Cost (CAC): For all marketers, Customer Acquisition Cost is a very important metric, as it defines the ROI of your marketing campaigns. In order to find out your CAC, just divide all your marketing expenses (spend to get customers) by the count of customers actually acquired. You can also get thorough insights into marketing ROI- just you need to calculate CAC for particular marketing campaigns or programs. After getting the data, you can easily prioritize your marketing expense on campaigns having lower CAC. As a result, you can expect to increase your profit scale.
Return on Investment (ROI): You have definitely well familiar with ROI. It’s a very important metric to reveal how all your marketing efforts plus expenses influence your bottom line. Your marketing team can make use of ROI at the marketing campaign or program level to inform upcoming expenses. According to recent research, ROI by the channel is actually the topmost metric that B2B marketers plan to utilize in the upcoming 12 to 18 months. It’s true that the calculation of Return on Investment for each and every channel is not easy always. But, you can take help of the simple formula of ROI to find it out.
Customer Lifetime Value (CLV): I hope you have heard this metric many times before. The undeniable fact is that customers are the main asset of your business. And that’s why it’s essential to figure out the value of a customer. But, how can you find out this value?
Simply by Customer Lifetime Value or CLV. This particular metric can tell the total time a customer would spend with a particular business throughout their lifetime. Thus marketers can find out the most valuable customers for the company. Once you calculate Customer Lifetime Value or CLV, your marketing team can easily use it to find out proper ways to retain the interest of the valuable customers for your business. Such ways can include loyalty programs and lead nurturing campaigns. Your efforts to retain the valuable customers will help to increase the profit scale of your business. According to one study, a 5% enhancement in customer retention can improve the profits of a company by 25% to 95%. Customer Lifetime Value or CLV can also help you in making your decision on how much you want to spend on your marketing programs as well as leads.
Brand Awareness: It is one of the essential metrics that you should mandatorily consider before implementing your data-driven marketing approach. Brand awareness determines the performance of your brand on social platforms and branded search. Actually, the brand awareness metric has been designed for digital marketers, who are looking for capturing changes to their online brand awareness throughout time. This metric is designed to provide a baseline and enable marketers to find out outliers. If a specific month is up in comparison with the previous period, it might be the result of a successful social media campaign or a brilliant PR campaign. This particular metric consists of four key measures and I am briefly discussing them below:
Twitter Followers: Owing to Twitter followers, your digital marketing team can easily track brand visibility on this major social media platform. Tracking this metric over time means you’ll get the capability of understanding trends in behavior, specifically when combined with the total number of posts throughout time. Your marketing team should thoroughly research this metric by making use of granular social media metrics.
Facebook Posts and Fans: When your digital marketing team starts tracking online brand awareness, Facebook should be considered for social media campaigns. The number of posts per month will help your marketers to track the speed of their social media efforts in times of comparing it to the enhancement in fans throughout time. These are top-level measures that need more analysis by figuring out at additional social media metrics.
Branded Search: When your marketing team would figure out the count of people, searching for your brand on search engines, they will get valuable insights into your brand awareness. It’s also important to analyze the count of organic search visits land on the product pages or homepage of your brand.
Brand Mentions: This particular metric is somewhat unique because it provides information on how many times your brand has been mentioned online. And it also includes third-party websites, social media, and blogs. In order to calculate this particular metric, you can use a social listening service like Talkwalker.
Free-Trial Signups If you’re going to purchase a car, you are most likely want to opt for a test drive, right? The same thing is applicable to your products or services. Do you know, dealerships can easily convert the test drivers into buyers? So, it can also be a golden opportunity for your brand. When potential clients get a chance to try out a service or product before purchasing, the chances of a higher conversion rate increase. It also improves your credibility, reliability, and reputation in the market. And so ‘test drive’ is one of the most important metrics at the evaluative period of a purchasing cycle. When your marketing team measures the count of test drives and the count of the customers who eventually purchase, they can figure out the average probability of purchase. Don’t forget to define the test drive for your products or services and design incredible evaluative marketing campaigns to incent your test drive. And the resulting change of this particular metric specifies the efficacy of your evaluative marketing campaigns and it’s a key indicator of future sales. If it’s possible to find out who tried a test drive and purchased, then your marketing team can easily calculate the conversion rate. You can also calculate the test drive conversion rate by dividing the number of purchases by the count of test drives. For instance, if the test drive conversion rate is 30%, then for every 100 test drives, the average indicates 30 purchases that might not have happened by other means. Actually, the “try before you buy” option is preferred by most of the customers. Moreover, it enhances the probability of purchase than in case they had not got the opportunity to test.
Churn Rate The churn rate is referred to the percentage of subscribers to a particular service who have discontinued their subscriptions to that service within a particular time period. If you are planning to expand your client base, your company’s growth rate (the number of new customers) needs to surpass the churn rate. The churn rate is also called the rate of attrition and it’s usually expressed as a percentage. When a business starts losing customers, its growth and profit adversely affected, based on the fact that how high the churn rate is. This particular metric is most considerable in the telecommunications industry. It includes satellite television or cable providers, telephone service providers (landline and wireless), and internet providers. Since most of the customers have more than one options from which they can choose within a particular geographic location.
Customer Satisfaction: The customer satisfaction metrics are indices or numerical scores that indicate data regarding your customers. In simple words, these customer metrics specify the health of your business relationship with your customers. Customer Satisfaction Score (CSAT) is a heavily used customer satisfaction metric. It is used for rating the overall satisfaction with the product (s) or service (s) received by a customer. Responders are generally requested to indicate their satisfaction on a scale ranging from 1 to a predetermined number, where each number indicates a particular level of satisfaction. Low numbers indicate low satisfaction whereas high numbers indicate high satisfaction. You can also express CSAT score on a scale of 0 to 100 percent in which the same principle remains the same. Instead of numbers, surveyors often make use of emoticons and thus the language barrier can be overcome. The meaning of emojis is universal and explicit. Do you know more than 92% of online users use emojis in their daily conversations?
Take Rate: This metrics is referred to the percentage of customers, who accept your marketing offer. Take Rate figures out the internal effectiveness of a marketing campaign and you can also link it to cost. When your marketing team starts implementing strategies to boost your take rate and alleviate your CAC, you’d start to see effects on the cost side of the performance of your marketing strategy. Thus you can expect to increase your ROI. Conclusion I hope you have got some great value from the above-mentioned 15 key metrics. You need to properly focus on these essential marketing metrics for having guidance in decision making and setting new business goals. To implement data-driven marketing strategies for your business, you have to replace gut feelings and best practices with data-backed decision making. It’s a high time to measure these key metrics for your business. Hurry up!