With multiple digital media in place, it has become more stressful than ever for marketers to understand which metrics must be tracked and which channels are interpreting the numbers correctly. It has become important to understand set in place some digital metrics to measure the effectiveness of a strategy.
With the number of digital media that are available for marketers today, measurability and effectiveness of each of them need to be scrutinized carefully.
This confusion usually creates wastages- marketers waste up to 25% of their budgets and end up pursuing the wrong strategies and channels.
Some of the metrics that cause problems for marketers include:
- Bounce Rate: as these metric measures the users that visited and left a website, it is difficult to troubleshoot the causes of visitors to leave.
- Page Views: This metric can also prove to be misleading. Experts believe that whether it is a small group of people digging deep into the website to find some hidden content can increase page views but also masking the underlying issues.
- Acquisition Source: The limitation of Google Analytics is that the acquisition source gives a broad-stroke view of where your visitors come from but it does not tell what brought them to the site or whether any method or strategy was effective.
According to experts, all new ventures must endure some guesswork to find the right metrics to measure. Setting viable goals and tracking the leads accurately throughout the buyer’s journey can also help. While the most appropriate parameters depend on the strategy, there are some metrics that can give marketers a comprehensive picture, usually, about the efforts resonating with the target audiences. These include:
Cost per click
Cost per click (CPC) is a simple but effective way to measure people’s response to digital ads. Financially too, CPC plays a significant role in determining the ad rank on Google; where the algorithm decides the usefulness of the content, making the CPC cheaper. Also, since CPC is based on maximum bidding; a successful campaign can stay within the budget. Coupled with increased opportunities for sales, CPC can increase ROI quickly and prove the worth of the campaign.
CTR identifies which approach spur the responses, like taglines or incentives and its metrics is the direct proof whether the right audience has found the product and if the company is connecting effectively. It is also a reliable indicator that a certain tactic is not resonating with audiences and shows how quickly the strategy needs to be adjusted. According to a report by WordStream, doubling CTR can boost your conversion up to 50%.
Making a purchase, downloading a guide, or filling out a form, conversion rates measure the percentage of visitors who complete an intended action. While some marketers get into buying clicks, but experts suggest that is pointless as it does not lead to any revenue-driving sales. It is critical to pay close attention to the conversion rate whenever any change is made, either on the website layout or product descriptions. This metric is also helpful to compare different channels and audience segments.
For CMOs, the metrics that are chosen to track effectiveness must answer the marketing questions and also guide the strategy. However, Marketers must ensure that the metrics are up and running from the first day of a campaign to accurately track ROI through the lifecycle of the campaign.