In this ad-cluttered, modern world we live in today, marketing has never been more important.
To succeed in business, you need to be able to cut through all of the noise and get your product or service in front of your ideal audience.
Statistics show that companies typically spend around 20% or more of their revenue on marketing.
But if you are not tracking the right metrics, you’re walking yourself through the dark, hoping it will have the desired effects.
Here, I mean specific numbers you need to follow and work to improve.
Yes, there are an endless amount of marketing KPIs you could be looking at, but here’s a list of the 5 key metrics you should be tracking, in order to have a clear view of where your marketing efforts should be.
A qualified lead is a potential customer who matches your ideal buyer profile, even if they have not contacted your business.
And regardless of what your definition of a qualified lead is, it always refers to someone who has a high chance of making a purchase.
Simply, qualified leads are crucial to any marketing campaign, because they are the ones most likely to make a decision and buy from you.
Whilst some campaigns can produce a lot of leads, only few may qualify.
However successful campaigns will find a handful of leads, but are much more likely to convert, therefore have a higher number of qualified leads.
That said, each marketing campaign should be personalised, so don’t just rely on mass marketing.
Secondly, rather than cold calling or emailing everyone, spend more time and do research to qualify potential clients.
If people are spending a lot of time on your site, it’s a great sign to indicate they’re interested in your business.
Plus, if they’re spending a significant amount of time by checking out other pages on your site too, it’s a sure indicator they’ve found something of value and are interested in what you could offer them.
To start monitoring traffic, tools like Google Analytics is a great place to begin, and it offers KPI reporting to help you make informed decisions. At no cost, it’s a no brainer.
And, if you find any low-performing pages where visitors are spending less time, take a look and try to understand why, so you can make any necessary changes.
Bounce rate is similar to how much time visitors spend on your website, but it’s a bit more specific.
To put it simply, bounce rate refers to visitors who land on your homepage and then immediately leave.
Of course, it’s a little difficult to say why they have done this (we’re not mind readers), but someone who “bounces” is essentially signalling that they’re just not interested.
Usually, if you have a high bounce rate it could be that your homepage is not designed well, or that you are focusing your digital marketing efforts on the wrong people, and therefore need to change your strategy.
As such, think about tweaking your web design; it could be as simple as adding a picture with a link or adding some more interesting text.
Then, if you don’t see an improvement in your bounce rate, take a look at your buyer profile and determine whether you’re targeting the right people.
As you may already know, conversion rate is the percentage of people who appear on your landing page and then turn into a customer.
In some cases, this can be closely related to bounce rate; landing pages with high bounce rates normally have low conversion rates.
And as obvious as it sounds, a low conversion rate is not good news - it probably means you’re spending too much money on push marketing to send people to a page, but not getting the sales you want.
Similar to bounce rate, sometimes your conversion rate can be improved with a few adjustments to your web design.
So, try changing the colour of your call-to-action or adding a more compelling headline.
Another great thing to try, is consider offering a freebie to encourage visitors to sign up to your mailing list; even though they’re not in the right stage of the sales funnel to make a decision, they may be interested in your product to see what you have to offer, and therefore begin to build a relationship with your company.
CAC is how much time and money you spend trying to convince the average customer to try and buy from you. It’s sometimes referred to as CPA, cost per acquisition.
To put it differently, it takes into account all of the cost it takes to reach a customer and then move them through the sales pipeline.
Then, this provides you with a number that you can use to compare with the average sale, to determine how much profit you’re making.
For instance, if your marketing costs for a given year was £50,000 and you acquired 1,000 new customers, your CAC is £50.
There are literally thousands of different marketing metrics for every digital channel and platform.
Quite often, you won’t have that kind of time.
Hence, focusing on the right metrics, ones that give you actionable insights on how to grow your business, are the most important ones.
To track all of this data effectively, organise your metrics on a spreadsheet or CRM system, and assess these on a monthly basis, so you can adjust your budget and strategy where appropriate.
To learn more, get in touch with us today.
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© Jo Gordon Consulting Ltd 2022