Digital marketers use diverse strategies and techniques to promote their services and products online but tracking results of online marketing is usually difficult and time-consuming. Measuring the achievement and profitability of their marketing campaigns is the biggest obstacle for marketers in today’s world. Therefore marketing teams use values like Digital Marketing Metrics and KPIs to measure and track the performance of their marketing campaigns. Specific digital marketing KPIs are created so that it becomes easier to determine targets and goals and measure performance based on those values.

This article will help you to dive into the big picture of business conversion metrics so that you can determine the best KPIs to track.

Revenue

Revenue is the total amount of money your business brings in and is the string that keeps sales and marketing teams together. The saying, “Marketing doesn’t drive revenue. Sales do” is absolutely true because it is only beneficial if the marketing and sales teams align.

How to track:

Set-up ecommerce tracking in Google Analytics and you will be able to track revenue.

Conversion Rate

The number of visitors who have completed a goal on your website form the conversion rate.

How to track:

Conversion rate = (conversions / total visitors) * 100%

This is the formula that can be used to measure your conversion rate.

Leads Generated

Lead generation starts at the start of the journey of a buyer. It is when you attract and transform potential users interested in your company. You need to get traffic in order to get leads.

How to track:

You can set up goals in Google Analytics to track lead generation.

Cost Per Acquisition

The price that is paid to get a new customer is Cost per acquisition (CPA).

How to track:

Total marketing costs (MCC) / Total customers acquired (CA) = CPA

You need to follow this formula to calculate cost per acquisition.

Order Value

Average order value (AOV) is the sales per order. It is the average dollar amount spent every time a customer orders.

How to track:

Revenue / Number of Orders = Average Order Value (AOV)

This is the formula that needs to be followed in order to track the average order value.

Customer Loyalty/Retention

Customer retention rate is the percentage of customers a business has retained over a specific period. Customer churn rate is the percentage of customers a business has lost over a given time period.

How to track:

The best way to measure customer retention is the customer churn rate. High churn rate means you are unable to meet the needs of your customers.

You can calculate churn rate like this: Lost quantity / Number of “x” at the beginning of time = Churn

Lifetime Value (LTV)

The income your business makes from a customer is the lifetime value

How to track:

The formula to calculate LTV is this: LTV = Average Revenue Per User (ARPU) x 1/Churn

ROI

Return on Investment (ROI) is used to evaluate the amount of return on a particular investment or compare the success of a number of different investments.

How to track:

Use this formula to track ROI: (Gross Profit – Marketing Investment) / Marketing Investment

ROAS

Return on Ad Spend (ROAS) is used to measure the success of a digital advertising campaign.

How to track:

Use this formula to calculate ROAS: (Revenue – Cost) / Cost

Media Mentions

You can maintain your brand reputation by tracking your mentions.

How to track: It is better if you track your mentions monthly. Tools like Moz, BuzzSumo or SEMrush Brand Monitoring can be used to automate a report.

Total Traffic

Total traffic gives you a holistic idea of the health of your website. You can track to figure out if there is a rise or drop in the during a specific time period.

How to track:

Login to Google Analytics > Acquisition > All Traffic > Channels and you can measure total traffic.

Email Subscribers

The most engaged users are usually your email subscribers. An increase in your email subscribers can lead to higher sales. Numerous tools can be used to track your email list growth.

How to track:

You can create form submissions in Google Analytics if you want to know where your email subscribers are coming from.

Go to Behavior > Events > Overview. Click on Form under the Event Category column. Here, you can view the number of impressions and conversions. Then, click the Event Action.

Branded Searches

Keywords that include your brand name or a variation of your brand name are branded searches. Branded searches are known for their high conversion rates.

How to track:

Google Search Console can be used to track branded searches. Also, you can track direct traffic in Google Analytics

Reviews

An emergence of Yelp, Google+, Facebook, and Angie’s List type of marketing strategies is evidence that proves consumers trust each other more than they trust brands. And reviews are your businesses social proof. Tools like YOTPO, TrustPilot, BrightLocal, BirdEye, or ReviewTrackers can be used to monitor reviews.

How to track:

A bad Yelp review can be calculated like this: % Lost Revenue = (5 – Star Rating) * .07

Let us assume you have a 3-star rating.

3 * .07 = 0.21

That’s 21 percent of lost revenue.

Net Promoter Score

Net Promoter Score (NPS) uses a single question to measure customer loyalty. And that is, how likely is it that you would recommend our company if you have to mark on a scale of 0-10? The responses are divided into three categories: promoters: 9-10, passives: 7-8 and detractors: 6 or below. Companies use NPS to know about their customers.

Groove uses Delighted. HootSuite uses Wootric. And, Zapier uses Promoter are some of the tools that are used to gather your NPS score.

How to track:

 To calculate your NPS, subtract the percentage of Detractors from the percentage of Promoters. (% of Promoters) – (% of Detractors) = Net Promoter Score