What marketing metrics should you be looking at in the coming year to evaluate your marketing program? While not all metrics apply to all situations, the seven key performance indicators listed below can provide the insight you need to keep your marketing campaign on track throughout the coming year. These are the marketing analytics to know and track for 2020:
1. Response Rate and Conversion Rate
How many people are responding to your direct mail piece? How many leads are you generating online from all of your marketing efforts? And even more importantly, how many of those responses are being converted into customers? Response rates and conversion rates are especially valuable for evaluating audiences and creative within the same channel—to determine the best audience segments and most impactful creative approach. But it’s important to go deeper in using additional marketing metrics to make the best marketing mix decisions.
2. Overall Website Traffic
Tracking and analyzing the traffic your website receives adds an additional dimension when measuring the results of your marketing program. Your website content supports your business—whether you are paying for digital advertising or not. More than 60% of direct mail recipients visited a website after receiving the mailpiece! You can also break your website traffic down into new visitors and returning visitors for additional insights. Your website traffic health can also indicate the functionality of your marketing tactics. For instance, a decline in website traffic could mean a technical problem with your site—which could include broken links or a Google algorithm penalty that requires changes to your search engine optimization efforts.
3. Cost per Lead (CPL)
What is it costing you to generate responses and qualified leads? You may have found a tactic that increased your response rate and/or conversion rate—but at what cost? It could be costing you more than the additional leads are worth. By calculating the CPL you can make more informed business decisions—whether it is adjusting your direct mail control package or choosing to shift dollars from digital to direct mail.
4. Cost per Acquisition (CPA)
Just as important is to determine what it’s costing your organization to generate a response, and it’s arguably even more important to calculate and monitor the cost to convert. In many organizations, lead generation is siloed from customer conversion. However, if you break those silos down and look across the entire funnel, great strides can be made in efficiencies if you evaluate and adjust your marketing plan to reduce CPA.
CPA will also help you optimize your media mix across channels and prompt you to see if there are tactics that could be improved in your conversion funnel, such as adding a follow-up mailpiece, phone call, or email to reinforce your message and drive stronger conversion.
5. Customer Long Term Value (LTV)
LTV is, in my opinion, the most critical marketing metric to monitor, evaluate, and use to drive business decisions. LTVs vary from channel to channel and audience segment to audience segment. Not all prospects, leads, or customers are created equal. The “acceptable” response rates, CPLs, and CPAs will vary depending on the LTV. If your CPL increases from $60 to $100 from one source to another—you may consider dropping or minimizing that $100 source. But what if the LTV between the two is $500 versus $1,000? I’m sure we’d all choose to invest an additional $40 on the frontend to achieve an additional $500 on the backend.
6. Social Reach and Engagement
How many Facebook, Instagram, and Twitter followers do you have? This metric is important because it will help you monitor the growth of your brand over time, as well as identify additional marketing opportunities and points of engagement in your conversion funnel. Why is this important? Social media influences consumers’ purchasing behavior. And Facebook specifically has the highest return on investment in mobile advertising.
Beyond the quantity of followers you have, how strong is their engagement? A benchmark goal is to have a 2 to 5% engagement level. An engagement could be clicking, sharing, liking, retweeting, hash-tagging, mentioning, or commenting on your posted content. If you fall below this, your content isn’t resonating with your followers. Facebook continues to decrease the number of organic posts your followers see—and engagement plays a big part in how their algorithm determines which posts show up in a person’s feed.
7. Digital Opt-in/Subscriber Rate
This may be a new metric, but it is growing in importance. As data privacy laws expand and take shape, appending third party data about your customers is getting more and more difficult and limited. First party data sources are going to be key, and using content marketing and email marketing to drive people to subscribe directly with your organization is instrumental to developing that first party data source. Building trust with your constituents and having relevant content that they value is key to generating those opt-ins.
Need help fine tuning your campaign to nail the marketing metrics you’re after? The IWCO Direct marketing strategy team is here to help you measure and improve the metrics important to your program. Contact me here to get started.
Subscribe via email to our Stevie® and Feedspot award-winning blog and get a fresh post delivered weekly to your inbox. We promise to keep it interesting, but you can easily unsubscribe if we don’t.