Do you know according to Forbes, by 2026, the e-commerce market is expected to hit a whopping $8.1 trillion?
If you are a marketer, you have a wealth of data at your fingertips from diverse sources.
And it wouldn’t be an understatement to say that marketing metrics are as crucial for a marketer, as is a compass for a traveler.
It is important to identify and evaluate the right metrics, which allow you to delve into what the data reveals about the effectiveness of your marketing efforts.
But here's the catch: There are tons of KPIs out there, and it's easy to get lost if you don't know which is important for you.
So, the question is, which ones to focus on?
Your choice of marketing metrics can vary a lot based on your strategies and campaigns.
Therefore, we have simplified your research and compiled a list of incredibly valuable metrics for you to explore.
Let’s get into it without any further ado:
What are Marketing Metrics?
Marketing metrics are values that marketers use to assess campaign performance, indicating the effectiveness of efforts in driving audience actions that create value. However, blindly tracking any metric can offer an incomplete or biased perspective.
These metrics are commonly depicted through charts, lists, and graphs. These typically follow a monthly, quarterly, or weekly format, ensuring sufficient data for statistical relevance.
Take a look at this social media report template from Livedocs, incorporating some of the most widely used marketing metrics:
Important Metrics to Track Your Marketing Campaigns
When it comes to keeping an eye on how well your marketing campaign is doing, which metrics should you pay attention to for an accurate performance check?
There are quite a few metrics you can track. Following is our go-to list of crucial KPIs that you should track to boost growth and generate leads:
- ROI Metrics
- Social Media Metrics
- Website Metrics
- Email Marketing Metrics
1. ROI Metrics
- Return on Ad Spend
- Cost Per Lead
- Cost Per Acquisition
When tracking the growth of your marketing campaigns, one of the most crucial metrics to monitor is the return on investment. The success of your marketing campaign is based on its ROI. To make sure your marketing budget is being used effectively, tracking ROI is essential. This also enables you to determine the budgetary distribution for the next campaigns.
1.1 Return on Ad Spend
The amount of money your company makes for every dollar it spends on advertising is known as return on advertising spend, or ROAS. In simple terms, it determines whether or not the ads you run are profitable.
To find out how much money your digital marketing campaigns are generating, calculate Return on Ad Spend, or ROAS. If your company spends money on digital advertising, use a return on advertising spend (ROAS) to assess whether your ads are effective.
1.2 Cost Per Lead
Cost per Lead (CPL) is a metric that calculates the price you pay to obtain a lead.
Businesses use Cost per Lead as an essential metric to assess the efficacy and efficiency of their marketing campaigns.
It enables comparison across various marketing channels or campaigns and aids businesses in determining how much they are spending on acquiring new clients.
The formula for calculating Cost Per Lead is:
CPL= Number of leads generated/ Total cost of the campaign
For example, if a company spends $1,000 on a marketing campaign and generates 100 leads from that campaign, the cost per lead would be $10:
CPL= 1000/100= 10
While a greater CPL can imply that changes are necessary to increase return on investment, a lower CPL points to a more cost-effective campaign.
1.3 Cost Per Acquisition
CPA is yet another important metric in marketing, and it focuses on the cost of acquiring a new customer rather than just generating a lead. Similar to a CPL, the CPA metric takes into account the total cost of a campaign and divides it by the number of customers acquired.
The formula for calculating Cost Per Acquisition is:
CPA= Total Marketing Spend / Total Revenue
For example, if a company spends $5,000 on a marketing campaign and acquires 100 new customers from that campaign, the cost per acquisition would be $50:
Businesses that want to learn how cost-effective their marketing campaigns are in terms of real customer acquisition may find CPA to be especially helpful. It offers information on the cost of acquiring new clients, which is essential for determining return on investment and fine-tuning marketing tactics to increase profitability.
And just like CPL, a lower CPA indicates a more efficient campaign in terms of acquiring customers at a lower cost.
2. Social Media Metrics
- Engagement Rate
- Conversion Rate and Clicks
2.1 Engagement Rate
Engagement Rate is used to calculate how much an audience engages with certain content on various platforms. It is a crucial metric for companies and individuals using social media for marketing since it gives them information about the level of audience engagement and the efficacy of their content.
Likes, comments, shares, clicks, and other types of interaction are all included in the engagement rate, which is commonly expressed as a percentage. The formula for calculating the engagement rate is:
Engagement Rate = Total Engagement Actions/Total Followers or Impressions x 100.
For example, if a post receives 100 likes, 20 comments, and 10 shares, and it is seen by 3000 people, the engagement rate would be:
Engagement Rate = (100+20+10/3000) × 100= 4.33%.
Now, if you are wondering, what this number means, the following is the breakdown:
- Good: 1–3%
- High: 3.5–6%
- Excellent: Above 6%
But, no need to hit the panic button if your engagement rate is chilling at 1% or below. Just take a glimpse at your content strategy. It could be as easy as spicing things up by tossing in some extra video content.
2.2 Conversion Rate and Clicks
Conversion rate and clicks are both important metrics in online marketing and advertising. Let's explore each term:
- Conversion Rate represents the percentage of users who take a desired action (a "conversion") out of the total number of visitors or clicks. To calculate the conversion rate, use the following formula:
Conversion Rate= Number of Clicks or Visitors/ Number of Conversions ×100
For example, if a website receives 500 clicks from an ad and 50 of those users make a purchase, the conversion rate would be 500/ 50 ×100= 10%.
- Clicks refer to the number of times users click on an ad or a link. Clicks are a fundamental metric in measuring user engagement and interest in an advertisement. However, a high number of clicks doesn't necessarily guarantee a high conversion rate.
There is no specific formula for clicks; it's a count of the number of times users click on a link or ad.
These two metrics play a vital role in sizing up the success of marketing campaigns. While conversion rate digs deeper and spills the beans on the quality of engagement, they both bring crucial insights to the table.
Growth in the context of social media metrics typically refers to the increase in key performance indicators (KPIs) related to the online presence of an individual or a brand across social media platforms.
Growth is the metric that spills the beans on how your follower count changes over time. Instagram makes it easy, giving you growth as a standalone number. But hold up – not every platform follows the same script.
For Facebook and Twitter, you've got to do a little math. Just subtract last month's follower count from the current one, and there you have your monthly growth. Easy, right?
3. Website Metrics
- Traffic Sources
- Bounce Rate
- Average Pageviews per Session
Website metrics aren't just numbers on a screen – they're insights into how well a website is doing, how users navigate it, and whether it's hitting the mark overall.
Analyzing these metrics isn't just important; it's a game-changer for everyone involved – from website owners and marketers to the analysts digging into the data. It's the key to understanding what's working and what might need a tweak.
3.1 Traffic Sources
When we talk about traffic sources, it means the paths or channels that users take to land on a website. Knowing this information isn't just a trivia hunt but a strategic move for website owners, marketers, and analysts.
Why? Because it helps them evaluate how well different strategies are pulling in visitors and optimize things for even better results. It's like having a roadmap to optimize your website's performance.
Here are common types of traffic sources:
- Direct Traffic: Visitors who directly type the website URL into their browser or use bookmarks to access the site.
- Organic Search Traffic: Visitors who find the website through search engines like Google, Bing, or Yahoo without clicking on paid advertisements.
- Social Media Traffic: Visitors who click on links to the website shared on social media platforms.
- Paid Search (PPC) Traffic: Visitors who reach the website by clicking on paid advertisements in search engine results.
- Email Traffic: Visitors who click on links within emails or newsletters that lead to the website.
- Affiliate Traffic: Visitors who come to the website through affiliate marketing links or partnerships.
3.2 Bounce Rate
Bounce rate is like the polite way of saying, "Thanks, but no thanks!" This metric is all about measuring the number of visitors who show up on a website, take a quick look at just one page, and then make a swift exit without doing anything else – no clicks, no exploring, just a quick "see ya."
In a nutshell, a bounce happens when someone does the digital version of entering a room and then leaving right away without checking out the other cool stuff inside.
By monitoring and analyzing the bounce rate, marketers can spot areas that need improvement, optimize landing pages, and enhance the overall user experience to reduce the likelihood of visitors bouncing from the site.
3.3 Average Pageviews per Session
It is a website metric that measures the average number of pages a visitor views during a single session or visits a website. It provides insights into how engaged users are with the content on the site, as well as how well the website encourages exploration beyond the initial landing page.
To track the Average Pageviews per Session for your entire website using Google Analytics, go to Google Analytics > Acquisition> Overview.
That's your golden ticket to keeping tabs on how many pages, on average, visitors are clicking through during a single session across your entire website.
For the nitty-gritty details on which specific pages are getting the most love in terms of pages viewed per session, go to Google Analytics > Behavior > Site Content > All Pages.
4. Email Marketing Metrics
Email marketing metrics are key performance indicators (KPIs) that help measure the effectiveness of an email marketing campaign. Monitoring these metrics provides useful insights into how recipients are engaging with email content, allowing marketers to assess the success of their campaigns and make data-driven decisions.
- Bounce Rate
- Conversion Rate
- Unsubscribe Rate
4.1 Bounce Rate
This metric is all about measuring the number of emails you sent out that didn't quite make it to the recipient's inboxes. Bounces happen for all sorts of reasons – maybe the email address is a no-go, the account is closed, or there's some glitch with the recipient's mail server. As a marketer, you should make sure those marketing messages hit the right targets and don't get lost in the digital void.
4.2 Conversion Rate
The conversion rate in email marketing refers to the percentage of email recipients who completed an action (a "conversion") after clicking on a link or call-to-action within an email. This could include making a purchase, filling out a form, signing up for a webinar, or any other goal that the email campaign aims to achieve.
A higher conversion rate indicates that the email content and call-to-action are resonating well with the audience, while a lower conversion rate may signal the need for adjustments to improve the campaign's impact.
4.3 Unsubscribe Rate
The email marketing unsubscribe rate is a metric that measures the percentage of recipients deciding to opt out or unsubscribe from an email list following a specific email campaign.
It offers valuable insights into dissatisfaction, disinterest, or potential mismatches between content and subscriber expectations. Keeping an eye on the unsubscribe rate is vital for maintaining a healthy email list and ensuring that marketing campaigns resonate well with the target audience.
To reduce unsubscribe rates, marketers should focus on understanding subscriber preferences, delivering relevant content, and respecting opt-out requests promptly.
Choosing metrics that sync up with your marketing goals and maintaining a clear report can make your marketing campaign journey easy. Whether it's ROI, email marketing, or CPA, you should be all set to monitor everything you've got in the pipeline.
There are various tools you can use to track these metrics, but you can’t neglect the pricing factor and other downsides.
If you are looking for an all-in-one data tool that is affordable and makes analysis easier, Livedocs might be the perfect solution for you.
With its amazing features and user-friendly interface, this is a data tool to lay your hands on.
Hopefully, this list of important metrics for your marketing campaign was helpful for you!
Frequently Asked Questions
- Why is it important to use metrics for marketing campaigns?
Using marketing metrics is crucial for several reasons, as they provide valuable insights into the performance of marketing campaigns, strategies, and overall business goals.
- Is there a platform that provides all social media analytics in one place?
Yes, Livedocs is a data tool that can help your team sync data from all your social media platforms, build custom reports, and set alerts – in just a few clicks. It has various other functions including pre-built metrics to generate reports even if you are not a pro at coding.
- What are the top 5 KPIs that you should track for a marketing campaign?
The most important KPIs that every marketer should track are:
- ROI( Return on Investment)
- Conversion Rates
- Engagement Rates
- Sales Growth
- Cost Per Acquisition
- What are some tools to track marketing campaigns?
Tools like Google Analytics, Google Search Console, SEMrush, Ahrefs and Livedocs can help you to stay on top of your campaigns.