Marketing is one of the biggest and most important expenditures that any company will make. Being able to accurately measure how your advertising and digital marketing campaigns have gone is the key component to optimising any process – so you need to know what are the key metrics to take note of.
The most obvious is clearly your ROI (Return on Investment) because spending £1k on a campaign which brings in £500 of revenue or sales isn’t a marketing campaign success by any measure. But if you spent £1,000 on your campaign and generated £5k in sales, you’ve hit a 400% ROI – which is great in anyone’s book.
But with these metrics, you also need to make sure you’re filtering out your own internal traffic (and that from your mum and other friends – unless, of course, they’re going to be signing up for whatever you’re offering!). You also need to set up blacklists to get rid of any referrals from dodgy sites (and they seem to be increasing on a daily basis) and look at methods of filtering out bot referrals.
- Start with a clear goal and objective.
- Decide what metrics to use.
- Establish a timeframe.
- Set a schedule to monitor campaign results.
- Choose marketing tools to support your goals.
- Use a marketing dashboard to present your results.
- Benchmark your performance data.
Advanced Campaign Analysis: Measuring Campaign Effectiveness and Long-Term Impact
What metrics can you use to measure a marketing campaign?
1. Return on investment (ROI)
ROI is a common metric that measures how much you invested and spent on your marketing versus how much you earned back. For example, if a social media marketing campaign for sneakers costs $1,000 and brings in $5,000 worth of sales, the ROI is $4,000 or 400%. The higher your ROI, the more successful the investment.
2. Cost per win
Cost per win measures the expense of each sale against the overall cost of marketing, and you can use it to compare campaigns against each other to see which performs better. For example:
3. Cost per lead
Cost per lead measures the effectiveness of marketing campaigns from a financial perspective, focusing on the number of leads rather than sales or wins. For example, a $1,000 marketing campaign for organic coffee that generated five sales from 10 leads would have a $100 cost per lead.
4. Cost per conversion
This metric matters most for companies working with online sales directly, particularly where a customer can place an item in their digital cart. The cost per conversion metric measures how much it costs to convert a website visitor into a buying customer.
5. Customer lifetime value
This metric measures the lifetime value of a customer by calculating the customers average sale amount by how many times they buy each year by the average amount of years they remain a customer. For example, lets say a customer spends $100 on average per sale and buys four times per year with the expectancy of staying a customer for five years. Their customer lifetime value would be $2,000.
6. Cost per acquisition
This metric relates to new customers, and it calculates how much it costs to gain one through marketing and advertising. Knowing the lifetime value of your customers overall can help you determine the right amount you should spend to gain new ones.
7. Conversion rate
The conversion rate, or goal completion rate, measures how many visitors to your website become leads or buying customers during a specific time frame of a campaign. For example, if 1,000 people visit your website during one week of a marketing campaign and generate 100 leads, that calculates to a 10% conversion rate.
8. Website traffic
Many marketing campaigns involve advertising on a company website. You can use total traffic figures to determine how successful your website is overall and compare traffic numbers to other time frames outside of the marketing campaign. Measuring your website traffic regularly helps you better understand what campaigns are working and when. You can even track traffic from mobile device visitors compared to computer users.
If you see a drop in the number of people visiting your website during a marketing campaign, consider troubleshooting. Check for broken or inactive links or other technical issues to fix.
9. Traffic by source
The traffic by source metric shows you where your website visitors come from, like organic visitors, direct visitors, referral links or social media links. Watching this metric can help you determine where to spend more effort or money to attract more visitors from that source.
10. New versus returning visitors
This metric helps show how relevant your website is in the long term. A high number of returning visitors shows that people think your site is valuable enough to keep revisiting. Consider reviewing this metric as you add content to your website to further measure how certain content, campaigns or advertisements perform.
This metric measures the number of total visits your website gets, even if several are from the same visitor. For example, a customer may shop in the morning and return to the site in the evening, and you count both as unique and individual sessions.
12. Average session duration
An average session duration metric applies to some industries more than others and measures the amount of time a visitor spends on your website in total. For example, the real estate industry often sees higher session duration times as people browse home listings. This metric can help you answer the following questions:
13. Bounce rate
Bounce rate calculates how many people leave your website after only viewing the landing page. This can help you determine:
Consider adding visual content and interesting calls to action to keep visitors on your page and including links to relevant material that applies to what you offer. For example, a marketing campaign about a new product launch that leads to a website homepage showcasing the new item is more likely to have a lower bounce rate than one not featuring the new item at all.
14. Exit rate
The exit rate varies from the bounce rate because it measures exactly where a consumer left the website, even if they click on more than one page. This helps indicate where a reader lost interest and can help you strengthen your overall content.
15. Page views
This metric is the total number of pages viewed, though it is important to know that repeat site visitors count each time. The value of this metric is it can help you determine if all of your website pages are gaining traffic or if certain ones perform better than others, which may help you decide where to place certain marketing ads.
An important marketing campaign metric is impressions, which is the total number of views your content and advertisements get. It measures every time someone views your ad, even if one person looks more than once across digital platforms.
17. Social reach
This metric tells you how many people on social media saw your content and only counts individual users, unlike impressions. A high number in your social reach metric is good, though not everyone who sees your content will engage, so the broader the reach, the better for more engagement. You can grow your social reach by:
18. Social engagement
Social engagement is the number of people within the social reach metric who interact with an element of your marketing campaign. This may include:
19. Email open rate
A staple of any marketing campaign is an email advertisement, and this metric measures the number of people who open the email compared to the total number of people you send it to. The top reasons consumers open emails include:
You can increase your open rates by creating an attractive subject line, emailing at an appropriate time and having a strongly segmented recipient list to ensure relevancy.
20. Click-through rate (CTR)
Click-through rates measure how many people click on the content within an advertisement compared to the full number of impressions the ad made. This metric can help you assess how relevant your ads are to viewers.
21. Cost per click
The cost-per-click metric is important in your overall marketing budget and references how much you pay for each time a consumer clicks on your ad. Overall, the lower your cost per click, the better.
How to measure success of a marketing campaign
Measuring the success of a marketing campaign factors in many of the metrics mentioned above and requires a plan to best determine what KPIs apply to what youre measuring. Here are five steps you can take to measure the success of a marketing campaign:
1. Create a goal to achieve
A marketing campaign strategy begins by setting a goal to measure with initial metrics to compare. Consider using the SMART goal technique:
2. Set a firm time frame
Establishing a solid time frame, whether 14 days or 14 months, provides the parameters around which to measure your success and helps create a sense of urgency. Time frames allow you to make year-over-year or month-over-month comparisons to track and measure data.
3. Select success factors
Select which success factors you want to measure for your marketing campaigns, such as sales, new users, social impressions, newsletter sign-ups or loyalty purchases. Outlining specific and quantifiable results helps you measure success later. Here are a few examples of goals that involve specific, measurable factors:
4. Give specific details
Providing as much detail as possible around your KPIs helps teams know what to focus on and how to achieve the goal you set. For example, “Grow target audience followers” is vague and doesnt explain what to measure specifically. In comparison, “Grow target audience followers on all four social media channels by 30% within three months” includes more details to explain the goal in a more specific way.
5. Draft a marketing measurement template
Once you decide which metrics match the goal of your marketing campaign and what time frame you want to measure the results within, consider creating a template with all of the KPIs you intend to track and measure. Include items like: