B2B Marketing, Business Growth, Lead Generation, Marketing Strategies

Digital Marketing Metrics Every Business Should Track for Success

Key digital marketing metrics to track for success

The main objective of every marketing campaign you create is to boost business growth and ROI. But, how will you quantify the success of your marketing efforts? How will you know whether these campaigns make any difference to your sales? The answer is – through digital marketing metrics.

In this hyper-digitalized era, businesses must leverage data from all sales touchpoints, marketing tools, and software to derive key metrics. This will help them track their marketing performance, make insightful decisions, assess ROI, and improve marketing strategies continuously.

What are Digital Marketing Metrics?

difference between KPIs and digital marketing metrics

Digital marketing metrics are quantifiable data points of marketing performance derived from various marketing tools, software, and platforms to track and measure the success of the campaigns for a specific period.

Marketers use various third-party and in-house tools to track these digital marketing metrics.

KPIs (Key Point Indicators) and Metrics are two different terms, although both are quantifiable data points. KPIs are metrics that track and measure how a particular project is meeting its specific business goals. These are more contextual.

On the contrary, metrics are raw data points used to track and measure the success of various business activities.

In this post, we will elucidate the Top 16 Marketing Metrics to Track in 2024 to gauge the efficacy and success of your digital marketing efforts.

Top 16 Digital Marketing Metrics Every Business Must Track in 2024

1. ROI

ROI (Return on Investment) is the most important metric, and it is often measured every quarter. It indicates the revenue (profit) collected against your marketing investment. It is calculated as:

2. Conversion Rate

‘Conversion Rate’ indicates the percentage of visitors that completed a specific conversion goal- it could be anything from signing up for the newsletter, making a purchase, filling out a form, downloading a whitepaper or app, etc.

High website traffic means nothing if your audience is not converting and going further down the sales funnel. It helps you understand the performance of your marketing campaigns.

Here’s how you calculate your CR (Conversion Rate):

3. CTR (Click-Through Rate)

CTR is again one of the important digital marketing metrics that measures the performance of your email or Advertising marketing efforts. It is a percentage of the number of people clicking on your ad, link, or email against the number of times it is shown.

If your Ad has 100 impressions and ten clicks, the CTR will be 10%. A high CTR tells you that your ad aligns with your audience’s interests and is driving more traffic.

You can improve your CTR by testing various ad copies, making relevant ads, offering better discounts, optimizing landing pages, and adding compelling CTAs.

fact about digital marketing metric CTR

Source: scoop.market.us

4. Cost Per Click (CPC)

Cost Per Click is a metric measuring the cost-effectiveness of paid advertising, how it is driving traffic to your website or landing page, and identifying where you can save expenses. It shows the amount you must pay when someone clicks on your ad. It is calculated as follows:

Try to achieve a low CPC by increasing your Quality Score and ensure to get maximum ROI on paid ad spend. You can improve your Quality Score through better offers, relevant ads, optimizing ad text/landing pages, creating related ad groups, etc.

5. Cost Per Action (CPA)

Cost Per Action is an important metric in paid advertising that indicates the cost you pay when someone completes a desired conversion goal – like signing up for a newsletter, subscribing to email, filling up a form, downloading software, requesting a call, etc.

6. Cost Per Lead

It is somewhat similar to Cost Per Action, only here you pay for the contact information of a potential lead interested in your brand.

This metric gives an insight into whether you are overspending or underspending on your lead acquisition marketing. It also helps you decide which campaigns need more focus in terms of ad spending.

7. Customer Acquisition Cost (CAC) or Cost Per Acquisition (CPA)

CAC (Customer Acquisition Cost) or CPA is an important metric that gives an insight into your digital ad marketing’s efficiency and financial profitability. It is calculated as the average cost a brand spends to acquire a new customer.

8. Bounce Rate

digital marketing metrics bounce rate

Bounce Rate tells you the percentage of single-page site visits as compared to visitors who left the site without viewing other pages or taking any action. It measures your website’s overall engagement.

Common reasons for bounce rate issues are poor UX, slow speed, poor navigation, too many pop-ups, and irrelevant content.

9. Customer Lifetime Value (CLV)

CLV (Customer Lifetime Value) is the amount a customer is estimated to spend on your brand during a lifetime. CLV can be measured through each customer’s historical data – the sum of all the profits you’ve made due to their previous purchases. You can leverage this data to predict the future revenue you expect to gain from each customer.

The longer a customer keeps purchasing from your brand, the higher will be your revenue. Digital marketing metrics like CLV tell you how your marketing efforts are paying off in terms of customer satisfaction and loyalty.

CLV helps you focus on high-value customers whilst reducing CAC.

10. Website Traffic

Total Website Traffic is the number of visitors on your website over a specific time, including existing and new visitors. It gives you an idea of your website’s visibility, popularity, and whether your audience is resonating with it or not.

Overall traffic includes traffic from all sources, such as organic (unpaid through search engine results), direct (site visitors), referred (from referrals), social media, email, paid (PPC or other advertising), etc.

11. Exit Rate

Exit Rate measures the number of visitors that leave a specific web page. It is slightly different than the bounce rate. Measuring ‘exit rate’ helps you identify gaps in your conversion strategies. Any particular page with a high exit rate requires optimization in either UX, responsiveness, content quality, UI, CTAs, or other elements. Here’s how you calculate the exit rate:

The exit rate must be generally below 40%-50%.

12. Average Session Time and Average Page Depth

Average Session Time measures the amount of time visitors spend on your web pages. Combine this metric with bounce rate and other engagement metrics to identify areas that need improvement, such as content, site speed, navigation, user experience, offers, CTAs, pop-ups, etc.

Average Page Depth tells you the average number of pages a user visits per session. It helps you determine whether users are engaging with sub-pages or not. Low page depth often signals that visitors are not resonating with the content, CTAs, offers, navigation, or other elements of your web pages.

13. SEO Metrics

Digital marketing metrics SEO metrics

SEO Metrics are important to monitor in digital marketing as they gauge the overall performance of your SEO efforts in SERPs (search engine result pages). These are the metrics to track:

  • Keyword Rankings: It tracks the rank of your website’s pages in SERPs for specific target keywords.
  • Organic Traffic: The number of visitors that visit your website organically (unpaid) through SERPs.
  • Backlinks: The number of other websites that are linking to your website and their quality. High-quality and authoritative backlinks improve your SERP ranking and site credibility.

14. Churn Rate

It is the rate at which your customers do not buy or stop the subscription over a specific time. The churn rate is a critical metric to track, especially for SaaS companies, as a high churn rate means low revenue.

15. NPS (Net Promoter Score)

digital marketing metrics Net Promoter Score (NPS)

It is a score ranging from 1 to 10 that your customers assign based on how likely they are to recommend your brand to others. The survey is often sent to users via email, and it helps marketers improve customer retention and satisfaction strategies.

16. CRR (Customer Retention Rate)

This metric measures the percentage of customers your business engaged and retained over a specific time. Acquiring a new customer is costlier than retaining existing customers. You can calculate it as follows:

Conclusion

Tracking digital marketing metrics is of utmost importance as it helps you gauge your marketing and advertising efforts and identify areas for strategy improvement. It helps you boost your marketing efficiency and increase ROI through continuous iteration.

If you want to know more about measuring your marketing metrics and taking your marketing efforts to the next level, get in touch with us!