Calculating the value your advertising efforts bring to your business is important. Here are 3 methods.
Tracking your capital expenditures by marketing channel is critical to determining your costs of customer acquisition. Your key performance indicators (KPIs) play a vital role here. For instance, you know what an acceptable click-through rate (CTR) is on each of your marketing channels based on how those channels performed for your company in the past. You can break down your KPI by week, month, or quarter. At each step, you are enriching your data and cross-referencing it against past performance to make sure your marketing campaign is on track. Your KPIs allow you to track how much traffic is generated by channel, how many conversions occur, and how long it takes to turn those conversions into paying customers. You are now defining your costs of traffic generation, your costs of conversions, and your cost of customer acquisition for each of your marketing channels. You are using your KPIs to make sure you are on track, and you are cross-referencing and enriching your marketing data at every step.
Conversions and Cost Per Lead
If your digital marketing campaign aims to convert visitors into leads or customers, measuring conversion rates will help you see whether your campaign is succeeding. Checking conversion rates by channels and devices is essential so that you can invest more in channels and devices that perform better. If you’re bringing in leads through your marketing campaign, you must measure how much you spend on each new lead. To determine cost per lead, divide the total campaign spend by the total leads generated through that campaign. If the cost per lead is more than what you’ll get after closing the sale, your ROI isn’t positive, and you should make changes.
Overall website traffic measures the total number of visitors who have visited a website over a certain period. Total website traffic is a strong indicator of content performance. It helps marketers measure how content campaigns or website content resonates with consumers. Google analytics is again the preferred tool for marketers to measure website traffic. Marketers can customize their dashboard to breakdown total traffic into traffic coming to focus pages and accordingly prioritize optimization or enhancements.
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