Numerous advice articles have been written about remaining visible above the current noise in digital marketing. Most are focused on search engine and social media optimization and tips on gaining a client base for your brand. This is undoubtedly crucial advice, but it should be considered along with other elements. After employing all the right strategies for your online marketing campaign, you should know the metrics to assess when determining the impact of your efforts.
Companies in Denver that are well-versed in PPC campaign management and other online marketing platforms will assess your objectives vis-a-vis your campaigns before recommending your applicable metrics. One of the metrics they center on is the revenue metrics. These are not just random numbers detailing the profits you are making. The following are the revenue metrics types that will be considered to form a clear picture of how much you are making from your digital marketing efforts.
Cost of Customer Acquisition (CAC)
You should know how much you are spending to attract a client to your digital marketing platforms. To do this, you will add up all you are spending on hiring your marketing staff, paying for PPC campaigns, and maintaining your software. This number is divided by the clients you are gaining in a specified period. The CAC is a crucial metric that ensures you are not spending more to gain clients than the profits you are making from them. Moreover, you should ideally settle for marketing agencies with low CAC, though this is considered in relation to other elements.
Value per Visit
This metric is generally combined with your interaction numbers for a clear revenue picture. In digital marketing, the value per visit is primarily based on how much money clients spend each time they visit your site. While this is the key revenue metric, marketers also measure intangible value by the shares your campaign receives on various platforms.
Customer Lifetime Value (CLV)
This metric denotes the value a client contributes to your company during the period he/she sticks with your brand as an active customer. This metric is calculated using predictive analysis of historical data, previous transaction data, and behavioral indicators. To collect accurate CLV data, you should invest in a good customer relationship management system. The goal of digital marketing is to maximize your CLV in relation to your CAC.
Digital Funnel Metrics
It is essential to track your clients through the steps of their buying journey using your sales funnel. Digital funnel metrics assess the number of website visitors you get in a given timeframe. A higher visitor number gives you more opportunities to make sales. Digital funnel metrics will evaluate how many clients take the desired actions on your site and how long it will take to convince them to do so.
While the above revenue metrics seem easy to collect, you still need an expert to interpret and apply them. Rather than investing in the online tools available for their collection, get an expert to handle them from the get-go. This will prove inexpensive compared to paying for a data collection tool and then hiring an expert later to interpret and apply the information.