Being able to measure your digital marketing metrics and actually understand them is vital for success – there’s no way you can learn or improve without them! Once you know what the key metrics are, you can start setting KPIs against them, showing you where your campaign is doing well and where it isn’t so that you can see what needs to be changed for future improvement.
There isn’t a particular set of metrics to suit all and it differs depending on each individual business. So, how do you make sure you’re measuring the right metrics based on your business? Well, our advice is, before you do anything, establish your business’ objectives. You can then align each objective with the right campaign, measuring different metrics and KPIs for each.
Where should you start?
Well, as mentioned above, each business’ needs vary, but there are a few key metrics that are always a good place to start. These can include:
1. Amount of traffic to your website
Regardless of what your product or service is, you need to know if people are coming to your website. If they’re not, you know there’s a problem with your marketing strategy. You need to start thinking about what the issue might be – is your content tailored for the right audience? Are you missing core keywords? Do you have any amplification strategies in place? Things like buyer personas can help you understand your target audience and you should consider enhanced strategies like inbound marketing to make sure there’s method to your content creation.
2. The source of your traffic
Discovering where your traffic actually comes from can show the start of your customer’s journey with you and help you focus your marketing tactics. Google Analytics segments traffic into four different types, these include:
- Direct traffic - when someone has actively searched your URL
- Organic/search traffic - when someone has found your site through search engines
- Referral traffic - visitors who have found your site through a link on another site
- Social traffic - those that come to your site through a social media platform such as Twitter or Linkedin.
Once you know this information you can determine where you should be focusing your strategy. If you don’t keep an eye on this metric, you could end up wasting time and money on marketing to an empty channel.
You need to think about where your audience are most active and how you can target them – if you know there’s a lot of search volume around your industry, you should consider PPC and SEO tactics. Or if your core market is heavily active on social media, you need to ramp up activity here and potentially start running paid ads on key channels.
3. Conversion rate from traffic to leads
Your conversion rate is what percentage of visitors come to your website and turn into actual leads. Generally, the more traffic you get, the more leads you’ll generate – but this isn’t always the case. If you don’t have clear CTAs and data capture points, you could be missing out on a whole load of leads. Ideally, your conversion rate should keep improving over time, but the figure can vary depending on your industry.
By monitoring the conversion rate of how much of your traffic turns into leads, you can determine how user-friendly your website is and whether your content is valuable to your current audience. If it falls below 3%, it’s time to re-think your content and your lead capturing tactics. You might be attracting the wrong people to your website or failing to capture their interest enough to gather their contact details. A/B test things like layout, sign up forms, pop-ups, copy and testimonials across your landing pages to see if this improves your conversion rate.
4. Bounce rate
Your website’s bounce rate measures the amount of traffic that lands on your page but doesn’t explore further. On Google Analytics, a visitor is considered to have interacted with your site if they have visited at least one additional page. It’s an important metric to measure, especially considering it’s the 4th most important ranking factor for Search Engine Results Pages (SERPs) according to SEMrush. If a user clicks on your page but then leaves without going any further, it can suggest to Google’s RankBrain algorithm that your website isn’t what they’re looking for, therefore push you further down the results.
Again, what counts as a good bounce rate can be variable depending on your business, industry and types of devices your visitors use – you need to set your own benchmarks based on where there are weaknesses in your site. As a general guide, a bounce rate between 26-40% is excellent, whilst 41-55% is average. Anything above 70% is an issue – excluding dynamic content like news, events and blog pages.
But to really get a grip of how your bounce rate, you need to segment your bounce rate metric within Google Analytics, considering things like age, gender, location, affinity, browser choice and device. Neil Patel has a great guide on how to do this!
5. Conversion rate from leads to customers
This is where you need to think of your marketing and sales teams as one unit because without your sales team sealing the deal at the end of the funnel, your marketing efforts become redundant. If you find that you have a low conversion rate turning leads into customers, you need to realign your sales and marketing teams to ensure they’re working towards the same end goal.
Use our Conversion Rate Calculator to find out the traffic and leads required to reach your revenue goals and the conversion rate needed to achieve target revenue.