Exactly What You Should Be Measuring
In today’s digital marketing world, EVERYTHING can be measured. This fact alone excites my inner-nerd and makes my job fun and rewarding. Analytics and geeking out on campaign ROI, CTR, CPA, CPC, and other TLA’s(Three Letter Acronyms) is part of our day to day at Aftershock Enterprises. It is important that YOU understand the basics and get the power back in your marketing and advertising dollars. So, what do I mean by that? I want to give you 4 basic metrics to keep track of so you can see EXACTLY what is being produced from your digital marketing efforts. After all, when everything can be tracked as I mentioned, there is no hiding on whether you are having success or failure in your efforts. The analytics software I will be referencing in this email is Google Analytics, this was built for the basic user as well as for the expert and is the most robust analytics Free software available… not to mention it connects well with your other digital marketing platforms.
Metric 1: Email Results
Starting with Email Marketing, which has proven over time to be an ROI machine, let’s look at what can be measured. When you send an email campaign through a bulk mailing system such as Mailchimp, Aweber, or Constant Contact it automatically will track the following:
- Open Rates – Percentage of your list that opened your email
- Click Through Rates – Percentage of your list that clicked on a link in your email
[Number of Conversions Multiplied by Value Per Conversion] – [Email Deployment Cost + (Cost of Product/Service multiplied by Number of Conversions)] = ROI
EXAMPLE: [50 Conversions X $20 Per Conversion] – [$30+ (50 X $3)] = ROI of $820
What is a good Open and Click Rate? Ideally you want to shoot for a 20%+ Open Rate and a 5%+ Click Through Rate. Any lower than these numbers it usually means you have a subscriber list that isn’t engaged often enough or you’re subject line and content need work.
Metric 2: Adwords Conversions
Next let’s take a look at Search Engine Marketing, specifically Google Adwords. If you want instant visibility to interested prospects a Google Adwords search campaign is a fantastic way to do it. If you aren’t sure what I am talking about these are the ads highlighted at the top and on the side of the results page of a Google search.
Just like with email marketing you want to establish conversions are setup and you assess a value to the conversions. The most common conversions are: phone call from the ad that lasted a certain amount of time, a form submission on your website, and a sale of a product on your website. Let your Adwords specialist and/or webmaster know what you want tracked so that it can be setup for you. Specify too the duration of a call that you believe should count as a conversion. Each business will be a bit different on determining the time that should be counted as a conversion. If you primarily are looking for prospects that call for directions, special/promotions currently being ran, or product pricing then 15-30 Seconds is probably a good conversion time selection. If you primarily are looking for prospects that call to schedule an appointment, then 30 Seconds or longer is a good conversion time. If your point of sale is over the phone, your time should be set over one minute.
Now that conversion tracking is setup, this will be a key report for you to determine ROI from your ad spend. The formula to determine ROI from Ad Words then can be determined as follows:
[Number of Conversions Multiplied by Value Per Conversion] – [Ad Spend and Management + (Cost of Product/Service multiplied by Number of Conversions)] = ROI
Metric 3: Quality Score
Another key pulse to watch when looking at performance in Google Adwords is Keyword Quality Score. Simply put Quality Score is a scale from 1-10 that takes 3 things in account:
- Keyword Relevance
- Ad Relevance
- Landing Page User Friendliness and Relevance
The higher your quality score is, the lower your Cost Per Click (CPC) will be. What you want to watch isn’t whether you have all 10’s on all your keywords, but that you are improving on the average keyword score. Achieving 10’s is possible, however it can take months and relentless optimization.
Metric 4: SEO Rankings
You want to be on page one for your top 10 keywords, right? Unfortunately, so do all of your competitors, and if you are in a competitive industry in a large metro area…. chances are it will take some time. That being said, if you are paying and SEO specialist you need to know there is progress month over month while you anxiously await breaking on to page one. You can’t measure progress right away by looking at the organic section in your Google Analytics, because until you get to the first page you won’t see big traffic spikes. Depending on who is doing your SEO they SHOULD have a month over month reporting tool that shows you where you rank on the keywords they are optimizing for. What you want to see is that you are going up in rankings, and you start ranking for more and more of your desired keywords. This tip is important because you would be surprised how many businesses have nothing to look at as far as progress on their SEO, and just go on their SEO specialists words of encouragement. Remember in the digital world there is NO HIDING.
These are 4 quick measurements that will give you the power of evaluating ROI in your digital marketing. Although this may be no crystal ball to predict your future success, if you will keep an eye on these pulses, you can use this insight to make better decisions and improvements to increase your ROI from your digital marketing efforts.