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What’s your current knowledge of the digital marketing landscape? If you were tasked with providing a comprehensive progress report, how would you fare? Would you know the first steps to take? While you may be doing a great job with your digital marketing efforts, you need to know how to present them. Without knowing the numbers, you won’t truly know whether or not you are making a dent. The good news is, you can allow the KPI’s and other data to speak to your results. Below, we will be going over how to effectively measure the overall success or failure of your digital marketing strategy.
As someone that has been working in the industry for years, you need to constantly be on your toes. Strategies are constantly changing and the landscape is ever-evolving. However, as long as you pay attention to the data that presents itself, you can come up with effective strategies time and time again. Having access to the numbers is one of the key elements to ensure that you are always moving forward in a positive direction. Luckily, there are plenty of accessible Key Performance Indicators (KPIs) that you can use to effectively calculate and analyze the overall success or failure of your marketing strategies.
These numbers can be used as key indicators for the success of your marketing efforts. These numbers are meant to showcase how effective your marketing strategies are. By having numbers that can demonstrate the effectiveness of your strategies and campaigns, you won’t be guessing as to what’s working and what needs work. This can help you make data-driven decisions regarding where to allocate more resources and money.
To effectively manage your digital marketing mix using these numbers, you’ll need to have goals and targets. The targets should be chosen based on what kind of performance you are going after. You also want to track everything based on the targets you’ve chosen. To effectively manage your marketing strategies using these indicators, you will need to improve your leading indicators. The leading indicators are the numbers that will showcase the prospects of your future success. Any lagging indicator should showcase how effective your strategies were at helping you achieve past targets.
There are countless different KPIs that you could leverage in your mix. Knowing which ones to choose comes down to various factors. Some of the factors that you should use to pick the right KPIs include who your audience is and what niche you are in. Ideally, you want to keep things as simplistic as possible. Try to use caution when choosing KPIs to ensure you aren’t overcomplicating things. You want to choose a range of KPIs that measure your core performance. While you may want to stuff your reports with complicated KPIs and every metric you can find, it would be best to avoid doing so. This is only going to increase the complexity of your reports and reduce their effectiveness of it entirely.
With this KPI, you can figure out how much you will be able to earn for each customer you acquire. The more you can retain your respective customers, the greater the lifetime value of the customer. This will only help to minimize costs and maximize profits. Having higher CLV numbers means that your customer acquisition costs will be lower. This can keep you earning more profit per customer. To come up with the CLV in your business, you will want to come up with the average revenue for each customer from their initial buy to the time they leave.
This is another key metric that you want to use. This KPI is meant to determine the total cost to get a single customer through a specific channel or campaign. To come up with the CPA figure for your business, you’ll want to take the total amount that it requires to acquire a brand new customer. From there, you will divide that number by the total number of new customers that you received from the campaign. You will be able to tell the overall success or failure of your new marketing campaign by figuring out how that number compares to the lifetime value of each customer for your business.
This is another key metric that you need to know. This KPI will tell you the overall value of each marketing channel that you are focusing on. By knowing it, you can tell whether or not to spend more time, energy, and resources on a specific channel. It will help you calculate the value of each marketing channel including:
– Facebook ads
– Google ads
– Webinars
– SEO and more
It will dictate the total value of a channel by reducing the cost of the channel or program by the lifetime value of the conversions you generate from it. For example, if you spend a total of $10,000 on SEO efforts and it generates 100 leads that lead to 20 conversions with a CLV of $20,000, the total MCROI would be $390,000.
As you can see, coming up with KPIs in your business can help you figure out what’s working and what isn’t. It’s the single best thing you can do to measure your effectiveness in the digital marketing space and to measure your success. Some of the tools mentioned above are the best available.
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