Measuring is a crucial part of the process of promotional initiatives in digital marketing. It is through data analysis that we can optimize a marketing strategy to obtain the best possible result. Also, a measurement of results allows evaluation of your investments. Knowing if they are generating a positive return – or if you need to change the strategy – is a fundamental fact. In this sense, it is essential to be sure about the measures that must always be met.
Here are examples of measuring the results of your marketing strategy more efficiently.
- CAC (Cost of customer acquisition)
CAC is a measure to know how much companies are spending to attract each customer. The cost of customer acquisition is a fundamental indicator since it takes into account everything you invested in marketing until closing sales. You need to consider how much was spent on marketing actions or the cost to maintain your sales team. To calculate CAC, simply divide the number of investments to acquire a customer by the number of customers won in a given period.
If the CAC result is high, it means that the company needs reimbursement as an acquisition tactic. In addition to being a health indicator of your business, it also helps to base decision-making strategies, analyses and projections.
A company spends a total of $300k in sales and marketing and generated 300 new customers during a one year period. We can compute CAC thusly:
The company’s Customer Acquisition Cost is $1k.
The hope is that the CAC is less than the expected revenue per customer so that you will make money with the chosen acquisition strategy.
- Watch out for the bounce rate.
Bounce rate is an SEO metric that shows the number of single-page sessions, in other words – how many people left your site without taking any action (visiting another page, signing into a newsletter, etc.).
Is a high bounce rate a bad thing?
It depends solely on the main purpose of the page. A high bounce rate of a checkout page is a much bigger problem than a high bounce rate of the page with the company contact info.
For example, a 75-80% bounce rate of a blog post is nothing terrible as it simply indicates that people came to the article, read it and left, which is a natural behaviour. As the bounce rate doesn’t consider the time the visitor spent on a page, it doesn’t necessarily mean that he didn’t find what he needed.
You can compare the bounce rates of your landing pages, analyze why some perform better than the others and use the same pattern to lower the bounce rate on the pages that do not perform well.
- Calculate ROI
As you may already know, ROI (Return on Investment) is one of the main measures used in digital marketing. Its calculation shows how much the company is spending on campaigns and what results are being used. Its formula is quite simple: a reduced profit margin (not the total number of sales) minus the investment cost, divided by the cost, again.
This metric requires careful monitoring, as it generates a specific percentage of the total results that a company can achieve. With ROI data in hand, you can identify which are the sources of profit for the company, which communication channels are most effective and which sources are showing better sales results.
ROI = (Return on Investment – Investment) / Investment
This calculation can be used to compare the efficiency of two or more marketing strategies, knowing what to prioritize.
- Organic traffic
Organic traffic refers to all the visitors that come to your website or blog from the search engines. It does not include the paid PPC ads.
We may say that higher organic traffic is the ultimate goal of the search engine optimization, so it is good to regularly track the progress to know whether your SEO efforts are successful or not.
To find the overall organic traffic that comes to your web, you need to go to your Google Analytics account and navigate to Acquisition > All traffic > Channels > Organic Search.
If you want to check the performance and popularity of your landing pages, the best way is to analyze the organic traffic coming to the individual landing pages. Just go to Behaviour > Site Content > Landing Pages and select the Organic traffic segment.