To know if your marketing efforts are successful is fairly simple. If you’ve launched a marketing campaign and revenues start booming, it means everything is great. But usually, it takes time to actually see the results with the naked eye. And then how can you know if it is still worth spending time and money on digital marketing? Are there any signs that your marketing campaign will bring fruit? What metrics to track? We'll tell you now. Read on!
Table of Contents
- Conversion Rate
- Traffic Sources
- Time On Site
- Return Of Investment
- Cost Per Acquisition (CPA)
- Customer Lifetime Value (CLV)
Any measurement process is always about actual numbers, Captain Obvious says. Only numbers can tell what goes right or wrong and to what extent. That's why the best way to ensure you're not wasting your marketing budget in vain is tracking the metrics such as conversion rate, traffic sources, time on site together with bounce rate, return of investment, cost per acquisition (CPA), and customer lifetime value (CLV).
Conversion Rate
Conversion rate tells you how well your site is performing in terms of getting people to take the action you want them to. It is the percentage of people who take a desired action on your website or landing page.
For example, if you have 100 visitors to your site and 10 of them sign up for your email list, your conversion rate would be 10%.
Apart from your business context, there are many other factors that can affect your conversion rate, such as the design of your website, the content on your pages, and the offer you’re making. There are a few things you can do to increase your conversion rate:
- Test different designs and layout on your website or landing page
- Play around with your texts to see what works best
- Create a more compelling offer that will entice people to take action
By A/B testing and optimizing these elements, you can slowly but surely increase your conversion rate and get more people to take the desired action on your site.
But what is a good conversion rate for a website? Well, it depends. To sell an ebook that uncovers the secrets of becoming rich is easier than soda-lime borosilicate glass hollow glass microspheres. Right?
Industry, product type, traffic source, customer’s device, cost of a product, location — there are many variables on which the conversion depends. Thus sometimes 10% is not enough, while in other cases even 2% is a resounding success. What number to strive for? 5% is the average "good" conversion rate across all industries.
One of the most effective ways to increase your conversion rate is using a chatbot. It can substitute human sales agents by simulating conversation and guiding your prospects down the sales funnel turning them into paying customers.
With TruVISIBILITY's Chat app, you can build any chatbot you want — whether it's a simple rule-based bot or a sophisticated hybrid with AI under the hood. And you don't have to code!
Get a TruVISIBILITY freemium account now, fire up your chatbot, and see your conversion rates start booming!
Traffic Sources
Tracking traffic sources can give you insight into where your website visitors are coming from and how they found you. Thus you can get a better understanding of what's working and what's not in your digital marketing strategy and make necessary adjustments so that you can better reach your target audience and achieve your desired results.
For instance, if social media is driving a lot of traffic to your site, then you know that promoting your content on these platforms is worth your time and money. While zero visits from search engines show an urgent need for SEO.
The best tool to track traffic sources is Google Analytics. Add the tracking code to your website, or just a tracking ID if your website platform allows, and then view the results in your Google Analytics dashboard. Another option is to use server logs to track traffic sources. This requires more technical expertise, but can be a more accurate way to track traffic.
Time On Site
It's not enough to attract visitors to your website, you also need to retain them. Otherwise, they won't do the desired action. That's why you should keep an eye on the time people spend on your site. That data is also available in Google Analytics.
Together with the time on site metric goes another one — bounce rate. It indicates the percentage of visitors who left the site directly from the login page or viewed no more than one page of the site without taking any action. Although there are many reasons for a high bounce rate, such as slow website loading or ugly design, it also can be a sign that your content is not relevant or engaging.
There are a few ways to reduce your bounce rate:
1. Improve the quality of your content. Make sure it is well-written, really useful, and relevant to your target audience. Don't dive into old-school SEO practices such as writing huge articles overloaded with keywords and don't copy-paste indiscriminately from AI text generators even if it's amazing ChatGPT, for AI isn't as smart as people say.
2. Make your website easy to navigate. Visitors should be able to find what they're looking for easily. Use clear and descriptive titles and menus. Ensure that your website is mobile friendly.
3. Use effective calls to action. Make sure they're placed prominently on your pages and that they're relevant to the page content.
For those who want to know the exact figure of a good bounce rate, we are stating: 30-50% is dope, and 70-80% is nope.
Creating and launching mobile friendly websites and landing pages is simple and easy if you are using TruVISIBILITY All-in-One Marketing Suite. We offer ready-made section-based templates which you can customize however you want and easy-to-use widgets to add functionality to your website.
Sign up for a freemium TruVISIBILITY account and deploy your website in a couple of clicks! No coding skills required.
Return of Investment (ROI)
Return of Investment (ROI) metric will tell you how much revenue your campaigns are generating relative to the amount of money you're spending on them.
There are a number of ways to calculate ROI, but the most important thing is to use the same method for all of your campaigns so that you can compare them fairly. Once you've calculated ROI for each campaign, you can start to see which ones are performing well and which ones could use some improvement.
ROI calculation is a pure mathematical thing. The most common formula is net income divided by the total cost of the investment.
ROI = Net income / Cost of investment x 100
For instance, you spent $1000 on Facebook ads to attract visitors to your online shop and got $3000 in revenue, while $1000 was eaten by regulatory costs. Thus your net profit is 2000$. Now let's check your ROI according to the formula above: 200/100 x 100 = 200%.
Want to get the highest ROI? Make use of email marketing. This channel is loved for the opportunity to return $40 for every dollar spent. TruVISIBILITY All-in-One Marketing Suite offers amazing tools for creating effective email marketing campaigns. Our Messaging App allows you to build beautiful emails, launch email blasts, conduct drip campaigns, and much, much more.
Register a TruVISIBILITY freemium account right now and start your journey for the extremely high ROI with email marketing!
Cost Per Acquisition (CPA)
Cost Per Acquisition (CPA) is a measure of how much it costs you to acquire a new customer or lead through your marketing efforts. The basic formula to calculate CPA is the total cost of acquisition divided by the number of new customers or leads.
CPA = Total Cost of Acquisition / Number of New Customers or Leads
For example, let's say you spend $1000 on ads and generate 100 new leads. Your CPA would be: 1000/100 = $10.
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) measures how valuable a customer is to your business over the course of their relationship. Simply speaking, it shows how much a customer may spend on your products while you are friends with them. This metric takes into account the revenue from all sources (purchases, subscriptions, etc.), as well as the costs associated with acquiring and retaining customers (marketing, customer service, churn, etc.).
CLV is important because it provides a framework for understanding how much profit a customer will generate over their lifetime. This information can be used to make decisions about acquisition and retention strategies. Additionally, CLV can be used to inform pricing decisions and target marketing efforts.
The simplest formula to get CLV is this:
CLV = Annual profit from the customer X number of years that they are the customer – acquisition cost
For example, you invested $500 in a marketing campaign that brought you a customer who is expected to spend $1000 annually for 3 years in a row. Then your CLV is 1000 X 3 – 500 = $2500.
However real life is not easy and calculating CLV in detail is not so simple, as you have to consider a lot of factors. For this reason, there are many formulas that include different variables and if you want to figure out more realistic CLV, then we suggest using an online CLV calculator (there are a bunch of them).
Conclusion
Now you know how to gauge your digital marketing efforts. By tracking conversion rate, traffic sources, time on site, ROI, CPA, and CLV you will have enough data to understand what's working well and what's not. You've also learned what marketing tools TruVISIBILITY Suit offers to you — for creating chatbots, for deploying websites, and launching email marketing campaigns. Now it's the time to get a TruVISIBILITY account to bring your new knowledge to life! And don't wait until tomorrow — your competitors won't wait.
Related articles
Want to receive more articles?
Sign-up for our weekly newsletter to receive info that will help your business grow