ROI, ROAS, CTR, SQL, LTV…
Let’s face it… there are countless stats you need to track when measuring your marketing growth. Just memorizing all the abbreviations and their definitions can be confusing on its own. So how do you keep track of every stat? And do you need to track every metric out there?
Or do you really only need to key in on a few key metrics?
Well, stepping back a little, every marketer knows revenue is the most important metric to track. It’s the foundational indication of how you’re performing. It’s also the easiest one to understand. It’s a single number with a single purpose. Cash tells all.
But after revenue, which stat should you track next?
In this article, we’ve analyzed the 5 most important metrics you need to focus on to measure marketing growth in your business if you want to succeed.
While your revenue will give you a clear picture of your overall sales, your traffic will give you an overview of the bigger picture: it shows you your potential customer base.
Traffic is essentially your website’s lifeblood. You need to ensure it survives at every cost since your customers will flow from this pool of prospects. Site traffic is essential. Simply put, traffic is the total number of website visitors you receive from every source.
Regardless of the individual campaigns you’re working on, you’ll ultimately need to track how it contributes to your site’s traffic growth. Your total website visits will give you a great bird’s eye view.
It’s important to watch for sharp declines in traffic since this will show you that something clearly isn’t right. On the flip side, sudden spikes in traffic can be a good sign that you’re doing something well. While traffic can shrink or grow month to month, you should be able to see growth over time if you’re running effective campaigns.
After you’ve tracked your total traffic, the next stat you’ll want to analyze is the source of the traffic. If your traffic is growing, but you’re running multiple campaigns in multiple channels, how will you know what’s working?
Tracking traffic by its source (or “traffic by channels”) will help you see what’s working so you can fix or optimize campaigns. Using channel-specific metrics will help you see exactly where your prospects are coming from ,so you can direct your marketing efforts in the right direction.
That way, you can see just how much is coming from organic, direct, referrals, or social, so you can build the right campaigns moving forward.
There are two types of site visitors:
The percentage of visitors who don’t check out another page on your site is known as the “bounce rate.”
In other words, these people entered your site, didn’t like what they experienced and “bounced back” to the previous site they were on.
Your site’s bounce rate is a critical stat you need to use to measure marketing growth since it will help you identify issues with your web pages that are pushing people away.
It’s important to note that your site will have several bounce rates. Every individual page has its own rate, so you can give you a clear picture of what page is working and why.
Every business needs leads. If you want them to grow, you’ll need to track them. Leads can be broken down into 2 categories: SQLs and MQLs.
SQL is short for sales qualified lead. It’s a prospect that’s ready to talk to your sales team. This means they’ve expressed enough interest in your business and are ready to transition into the sales process. At this point, they’ve typically been vetted by your marketing team and handed over to your sales team.
MQL is short for marketing qualified lead. An MQL is a lead who has interacted with your company or site and could become a customer after being nurtured properly. Some MQLs reach a point in the process that they evolve into an SQL.
Your ability to turn MQLs into SQLs is critical to your marketing growth. So you should make sure you track them on a continual basis.
You can track them through lead scoring, which is when you assign certain values or points to leads you generate. While scoring differs from company to company, you’ll usually base points on traits like how much information they’ve given you and how they’ve engaged with your site.
For example, this could be clicking on a link in an email, booking a meeting, responding to an email, or downloading a lead magnet.
Understanding and tracking MQLs and SQLs are important since they can automate the process of converting a prospect into a customer. This will help your sales team optimize their time, so they’re only engaging hot prospects.
Ultimately, this will help you understand where your prospects are at in the buying cycle, so you know exactly how to respond, increasing conversions.
Speaking of conversions…
Let’s talk about one of the most important metrics you need to measure.
Conversions. It seems to be the marketing world’s favorite word.
Simply put, it’s the percentage of site visitors that purchase your product or service. The higher your conversion rate, the more sales you’ll make. But your data tracking shouldn’t stop there. You need to track the conversion rate by the source.
Similar to tracking traffic by source, you need to also track how each channel is converting.
For instance, if you’re using Instagram and Google’s organic search results to drive traffic to your site, and you’re seeing that you’re getting double the conversion rate through organic traffic, then you can clearly see what campaigns you need to continue working on and what you need to improve.
In this example, you’d be better off putting your efforts into SEO since it would be giving you a better return on your investment (ROI). Which brings us to our final stat..
At the end of the day, if your marketing is producing massive revenue but there’s little profit to show for it, there’s a major issue.
You need to ensure your campaigns are profitable so your business can grow. Your return on investment will show you just how successful your campaigns are.
If you have a positive ROI, what you’re doing is working. However, if you see a small or even negative ROI, you need to adjust your strategy.
Your ability to build profitable campaigns is only as good as your ability to track the right metrics. You need to have a solid set of tools and marketing insights to get ahead in today’s online business world.
Here at Rizen, we’ll walk with you side-by-side to craft an effective marketing strategy so you can get more done in less time.
We offer our partners more than just PPC, Social Media, Content Creation, Conversion Optimization, and SEO services. We create a custom-tailored marketing strategy to help you reach your goals, whether that’s multiplying leads or increasing revenue.
We’ve helped a range of businesses in different industries maximizing their marketing efforts by measuring and building successful marketing plans.
In 2015, we partnered with Loigica to craft a new marketing strategy. Loigica invested $4,150 and in only 35 days, they generated $20,990 in revenue. In 2016, they invested $20,000 and generated $80,000 in revenue. Now, they’re generating 140 leads per month at an average cost of $15 per lead.
In 2018, we partnered with Alco Windows and Doors with a goal of multiplying leads and revenue. In under 3 years, they received 10 times the revenue (from $500k to $5 million). Leads also increased by 15 times. Between 2018 and 2020, average leads increased from 5 to 75 per month.
Ready to see revenue and lead growth in your business?
Reach out to us today to see if your business qualifies.