When applying marketing strategies, you need to identify if the results are effective because campaigns perform differently for each business. To know which are the most suitable actions and if they put you on the path to success, there is only one way: to follow the metrics and measure them correctly.
These tools are fundamental parts of the Digital Marketing application because they show where the errors are, what needs to be adjusted, how to save on actions, what has changed in the indicators, and the new business opportunities, among other advantages. In other words, they are a perfect guide for strategic decision-making. Below is a list of the leading marketing metrics we consider essential to track. Better understand the importance of each of them for Digital Marketing actions!
Return on Investment (ROI)
The ROI is a comparative analysis of how much you spent and how much has grown in sales. A fundamental feature of how Digital Marketing works is to improve profits, so this is one of the most important metrics to evaluate. With this metric, you can know if the money invested in campaigns was well spent and receive insights to identify when it is interesting to increase the investment, further improving the result.
Customer Acquisition Cost (CAC)
The CAC establishes a relationship between spending on Digital Marketing and customers. In other words, it measures the cost that each new customer represents to the company, showing whether the campaigns are worth the effort.This includes all expenses applied in promotion strategies, from the amounts invested in marketing to the salaries of the sales force. To calculate the CAC, you must separate the desired period and evaluate the difference between these values and the number of accounts that appeared in the given time.
Monthly Recurring Revenue (MRR)
MRR allows you to visualize your company’s growth in terms of revenue from monthly invoicing. This means that advance payments can be adjusted to assess a growth trend. To do this, just divide them by 12. However, cash payments, accountant expenses, and discounts must be excluded. Include credit transaction and billing fees.
Cost Per Acquisition (CPA)
The CPA is responsible for lead generation. It is the sum of expenses and contacts acquired within a time. For Google Ads campaigns, the amount charged on the CPA is equivalent to the conversions of leads within the site.
Cost Per Lead (CPL)
The CPL assesses the expense to generate a new lead. This metric helps in how Digital Marketing works because it shows if the campaigns are well adjusted. Ideally, the CPL should be as low as possible, but high values are also justified if conversions from leads to customers are efficient. The result is relative, which justifies hiring a specialized company to measure the metrics.
How to Create a Digital Marketing Plan?
When investing in Digital Marketing strategies, it is essential to have a marketing plan, as executing the various actions that make up this methodology without strategic planning can be a big problem for your business — and for your pocket. However, there are three steps you should consider when creating your Digital Marketing plan. Check it out below.
- Define your goals, establish short-, medium- and long-term goals;
- Make use of Key Performance Indicators (KPIs );
- Know your target audience.
What are the advantages of Digital Marketing?
It is clear that digital media influence everything around us, and marketing is no different. Therefore, expanding companies must have Digital Marketing as a priority. Among the advantages are:
More Communication and Interactivity
The first advantage is the improvement in communication and interactivity with your audience. Digital channels, especially social networks, are commonly used as contact tools between customers and companies. On these platforms, consumers and prospects take advantage of proximity to answer questions about products and services, provide feedback and talk about expectations and tips to stand out in the market.
Increased competitiveness is also a reality. When your company is available online, it manages to strengthen ties with consumers, keep up with the competition, reinforce its competitive advantages and, with care and attention, even retain consumers!
Best Value for Money
Unlike traditional and offline strategies, Digital Marketing has more democratic values. This is one of the benefits, especially for small and medium businesses. The cost-effectiveness of the investment is excellent: in addition to allowing you to work with more affordable prices, campaigns tend to be much more segmented, enabling you to reach only those audiences that matter to your business.
Greater global reach
The Internet also allows you to achieve greater reach. For example, if your company works with a software solution, it might be interesting to work with a national space. With Digital Marketing, you’ll be able to reach people across the country more straightforwardly and practically compared to traditional strategies.
Analysis and measurement in concrete data
This is one of the most outstanding benefits of Digital Marketing. When we think about traditional marketing, it’s much more complicated to think about measurement: how to measure which customers arrived through magazine ads? How to estimate how many customers arrived via a back bus? With Digital Marketing, it is possible to know exactly where each client and prospect came from, what path they took to get here, and, from there, identify which strategies are being more promising and which investments need to be readjusted.
With focused and well-targeted strategies, it may be possible to increase the number of sales opportunities. With lead generation, it is possible to educate the market and guide them to the moment of purchase through a well-designed funnel. When you work with Digital Marketing, you can help the consumer go through the purchase process more intuitively and straightforwardly.
Attracts the Right Audience
The segmentation of Digital Marketing strategies is also one of the unique attractions for companies. When, in traditional marketing, we needed to take a giant leap to win a few customers, with Digital Marketing, it is possible to segment more and more and focus on distributing the message only to those people who can represent a potential customer base for your business. The more focused your strategy and the closer you get to the right audience, the greater the chances of conversion.
Allows access to Customer Feedback
Social media allows the company and customers to communicate in a much more transparent way. Users tend to use these tools to share more practically and directly with companies that have purchased or are interested in purchasing. Suppose you are in these channels and know how to use them strategically. In that case, you will be able to identify some suggestions coming directly from your customers to improve your image in the market and increase your competitiveness.
What are the worst Digital Marketing Mistakes?
Marketing strategies can bring many benefits. However, you must pay the utmost attention to every detail to reap these rewards. Are you doing everything right, or do you need to review some things? See what the most common mistakes companies make are:
- Not knowing your persona
- Not setting goals
- Choose inappropriate strategies
- Not understanding your business needs
- Not understanding your company’s seasonality
- Ignore the need to retain your consumer
- Not using the proper language to communicate
- Take specific actions and not invest in recurrence
- Have a very heavy site that takes time to load
- Do not have blogs
- Do not worry about your content variation and format
- Not knowing the awareness of your market
- Not tracking metrics
- Not optimize marketing values
What are the results of not investing in Digital MarketingM