There is a huge competition in marketing and you cannot afford to waste time without a solid strategy. These days, it is necessary to analyze the productivity ratio of digital marketing strategy. It can be observed by several indicators to make sure that your campaign is on the right track.
So, in this article, we will tell you about 7 key points to analyze the productivity of your strategy in digital marketing.
These indicators are:
- Conversion rate
- Return on investment
- Bounce rate
- Click rate
- Sources of traffic
- Number of new visitors Vs number of return visitors
Those indicators benefit you so that you can see the portions of your strategy that are on track and those that need modification.
Knowing it in time can be crucial for you to change failure into success.
There are many measures available in the digital medium, which can confuse those who already work in the area of digital marketing.
So, it is very essential to pick the correct metrics so that you can always improve and innovate in your business.
1. Conversion Rate
The concept behind the monitoring of digital marketing metrics is to have the guarantee that your actions are working accurately.
So you have to start working with a metric that goes straight to the point and shows you how successful your efforts are achieving results.
The conversion rate indicates the percentage of people influenced by your content who converted in some way, that is:
- They bought a product or service
- Subscribed to a newsletter
- Marked a visit
- Or whatever other action you are looking for
This metric discloses the effectiveness of your campaign. Simply put, a low conversion rate indicates that you are failing to persuade your target audience that your offer has value.
This is the metric that will interest you the most in your finance department. This is the ultimate measure of success for a marketer.
Low conversion rates are a hallmark of any challenge, from poorly designed websites to unattractive offers.
2. Return on investment (ROI)
Every field of a company needs to get used to calculating return on investment.
The objective of the ROI metric is to show how much a specific action, campaign, and even some section is generating financial profit.
The idea is to always get a return that is much higher than the initial investment.
By monitoring the ROI, you can achieve this goal and trigger an alarm if you find something wrong.
Return on investment of any company can be calculated by using the following formula:
3. Bounce Rate
You have to ask yourself is your content appealing to the public.
The best way to make sure is through checking the bounce rate of your site.
But first of all, let’s discuss what bounce rate is:
This behavior of the audience shows that they did not find anything relevant or what they were looking for.
To stop your bounce rate from increasing, you need to examine your content and also take care of what your audience is looking for.
How to make your content high-quality to reduce bounce rate?
You can prepare relevant content with the support of quality images and videos. There are online platform which provide you the facility to download quality images. Some useful platforms for this purpose are Pixabay and Pexels.
Grammar checking through Grammarly
Check the grammar and spelling mistakes carefully because bad grammar always leave a bad impact.
If your grammar is not strong or if you are facing problems regarding spell mistakes, you can assist well-known Grammarly which gives you instant results.
Duplication removing through paraphrasing tool
It is also important to check the plagiarism in your content. Plagiarism is something that is not tolerated in any field.
So, try to remove duplication from your content using an paraphrase tool which helps you to rephrase your content to get maximum uniqueness.
4. Click Rate
If people are visiting on your site but not clicking on your offers, you need to do something.
It may be because the content is not persuasive enough or maybe your images are not good enough to attract your audience.
Whatever the reason is, the main focus is to keep the click rate always growing.
At that point, it’s very important to monitor the effectiveness of your marketing to understand the performance of your campaign.
5. CPM, CPC, and CPA
These three matrices are also very important to check the productivity of your strategy.
CPM stands for cost per thousand impressions which is frequently used to measure the results you achieve in paid media campaigns focused on brand recognition and visibility.
Most of the social media platforms like Facebook Ads and Google Ads give the option to use CPM.
You can calculate it by the following formula:
Another very useful matric is CPC which stands for Cost per Click.
It concerns a very particular action which is the click for the ad destination.
This matric can be calculated by the following formula:
This metric stands for Cost per Action and this one is also used for paid social media spending.
They occur when you want someone to buy products, to fill out a registration form, or to sign up for a newsletter or specific service.
It can be calculated by the following expression:
6. Sources of traffic
This is useful for segregating your traffic sources to identify which one of them is performing well and which one is not.
These traffic sources can be divided into the following categories:
- Organic search: These are the visitors and customers who come to your site on the basis of the search query.
- Direct Visits: These are the visitors who come to your site by entering the URL.
- Referrals: These are the consumers who arrive at your site from a link on other blogs or websites.
- Social Media: These are visits that you receive from social media platforms.
7. Number of new visitors vs number of return visitors
The number of return visits gives you a sign of value and quality of your content. Track this ratio weekly or monthly to see the performance of your new content.
For example, if the ratio of new visitors to repeaters is high compared to the previous month, this means that the new content is playing a major role in driving traffic, while the rest of the website does not meet the needs of those new visitors.
There is only one way to know if you are producing value for your company and this can only be done by analyzing the productivity matrices of your digital marketing strategy.
Set your goals and objectives first and then start analyzing the metrics. From there, you see what needs to be adjusted.
Learn with your success so that your work becomes more and more strategic.