If you can’t measure it, you can’t mange it. – Peter Drucker
- 78% of CMOs believe marketing will undergo radical change over the next 5 years
- Close to half are preparing for digital to grow to 75% of marketing budgets
- 42% believe analytics will be a core competency of marketing (source: Accenture Interactive CMO Study)
These statistics say there are big changes in marketing coming. But we live in budget cutting times, and marketing budgets are among the first to get cut. Why? When non-marketing executives take a hard look at the numbers, they often can’t see a direct link to revenue.
The secret is having – and correctly using – the right measurements.
Here are 12 data driven measurements every marketer should know.
- KEYWORDS: 90% of consumer buying decisions begin on the internet according to Forrester Research. The journey most often begins with a consumer typing their unmet need into the query box of a search engine. 54% find websites through natural search engines results says Forrester. Do you know keywords you want for your company? If you don’t, how do you expect to attract the people who are looking for what you have to offer?
- LINKS (HYPERLINKS): The best way to establish authority and improve search visibility is to have reciprocal links with other authorities in your area. Do you know how many inbound links there are to your website and who they are? You should. Where once low-quality tactics worked for a long time, link building has undergone significant changes in recent years due largely to recent Google changes that discredit dark hat tactics. Now, blogs, guest blogging and social media represent authentic ways to build links and relationships that are mutually beneficial to businesses.
- SEARCH ENGINE RESULTS PAGE (SERP): 85% of people click on a website listing on the organics side of a search engine page; 53% click on the website that is listed first. Within the top five listing, 88% of the clicks are made according to Search Engine Watch. This means, if you want people to come to your wevsite, it’s important to know your Search Engine Rank Page for your most important keywords.
- COST PER CLICK (CPC): If you can’t get to a top rank with your top keywords, it’s better to pay for a top rank than believe search engines are going to drive visitors to your site anytime soon. Paid Search ads should be considered. They are bought on a cost per click basis. Paid search operates like an auction where the buyer sets the price, budget and time frame. CPC’s also provide a valuable benchmark on the value of keywords. Based on the price, they show what others are willing to pay for them.
- CLICK THROUGH RATE (CTR): Is the percentage of people who viewed a page that contained your ad and also clicked on the ad. This is calculated by dividing the total number of clicks by the total number of ad impressions. CTR is an important metric to measure performance and whether the ad is relevant. Google Adwords says the average CTR is 2% for ad placements on Google.
- UNIQUE VISITORS (USERS): Is the number of distinct individuals visiting a website during a given period, regardless of how often they visits. It is a key metric for measurement if your web business is increasing its visibility and customer base.
- BOUNCE RATE: is the percentage of visits where the visitor view a single page and left. Bounce Rate is considered a key measurement of website relevance. Because, generally speaking, if the site is relevant, the visitor will view more the one page. As Avinash Kaushik, Analytics Evangelist at Google says, a high bounce rate generally reflects visitors who “came, puked, and then left”. To reduce Bounce Rate, here are 20 Things to Consider from Search Engine Watch.
- TRAFFIC SOURCES: Every visit to a web site has an origin, or source. There are three main categories: 1) Search Engine (Google, Yahoo, Bing – either organic or paid, 2) Another Web Page (Facebook, Twitter, another website) or 3) Direct (type a website url in the browser). This show how your audience finds your business and a very valuable measurement for tracking your time and investment into driving website traffic.
- KEY CONTENT (PAGES): Once a visitor gets to your website, what pages are most viewed? Key Content or Top Pages tells what is their hierarchy of needs from your business.
- CONVERSION RATE: What is the action(s) you want visitors to take when they get to your website? Conversion Rate is the percent of visitors that take the action you want. If you sell products or service from your site, it means the percent who buy. But, if you don’t (and most websites don’t), it means the percent who may subscribe to an email, register for a trial offer or download information. Any action or event that indicates they are a step closer to being a customer. In fact, a business may have multiple conversion rates. Macro Conversions are primary conversions like completing an order for an e-commerce site or filling out a contact form for a lead generation site. Micro Conversions are the usual actions that are precursors. They may include signing up for an email newsletter or downloading a PDF.
- AVERAGE ORDER VALUE: If you sell a product or service on your website, a key means for maximizing revenue is to know your Average Shopper Value. The calculation is: Revenue/Number of Transactions = Average Order Value. If you know this measurements, you can determine what you need to do to get customers to buy more (Free shipping on orders over $75; Buy 2, get 1 Free, Deal of the Day).
- WORD OF MOUTH: The number of positive Reviews, Rating, Facebook Likes, Tweeter Follower, Shares, Comments and YouTube Views can have a relationship to website traffic which has a relationship to revenue. People like to do business with people they know. If your business is generating word of mouth, potential customers are going to want to get to know you through your website.
Do you think these are data driven measurements every marketer should know? Any there others that you recommend?