Most CFOs and CMO focus on ROI success from Digital Marketing
With rapidly evolving social media and digital marketing’s “ROI metrics, tools and process”, brand’s and their key decision makers are now focusing more on actual results.
Yes, that’s correct.
“The best CEOs I know are teachers, and at the core of what they teach is strategy ~ Michael Porter”
Here are 8 key ROI metrics which CMO’s, CEO’s and CFO’s across organizations, countries and industries focus on:
Customer Acquisition Cost (CAC):
The total spend that you have incurred in getting an enquiry or a lead that has finally converted to a customer. This would include website maintenance during the said campaign period, content marketing, PPC, SMM, digital spends etc too. Any and all efforts that have gone into converting a customer from a prospect.
Customer Lifetime Value:
The total revenue a customer brings for your business during his or her lifetime. This would include every purchase till the customer stays with your brand (including repeat purchases, etc). As a business, brands usually have an idea or estimate of average ticket size or revenue from each customer.
Number of referrals across different social and digital platforms. For eg. from email marketing, social networking sites, content marketing campaign, influencer campaigns, PPC etc USEFUL TIP and HINT: Using distinct “Discount codes” or “Referral Codes” helps to keep track of the same easily.
Shopping carts: Purchased and Abandoned:
Number of shopping carts which completed transactions successfully and also the number of transactions that dropped off. Here the key decision makers are interested to know at which page or stage did the prospect drop off eg. before signing out or while adding more products or after adding shipping details or while entering discount codes etc. Here is a link to few effective guides for User interface (UI) across ecommerce sites.
Customer Retention costs:
As the name suggests any and all costs to retain customers via emailer campaign or gratification investments such as digital loyalty rewards, social media contests and rewards etc.
Enquiry to Conversion: Lead quality ratio:
This gives them an idea of the actual quality of leads. For eg. 1,000 leads with 35% conversion might be a much better campaign strategy than 10,000 leads with 2% conversion. This needs to be tracked in sync with the source of the website for the lead or enquiry generation.
Traditional cost to conversion and Digital Cost to conversion Ratio:
The cost for converting a particular demographic of user using Traditional marketing and for a similar customer the cost involved across digital marketing channels.
CTA Conversion ratios across Pay Per Click (PPC), Social Media Marketing (SMM), Search Engine Optimization (SEO) and Digital Marketing:
Any and all Call To Action (CTA) used, what were the conversion ratios across:
- What type of messages appealed to users
- What type of discount codes or offers worked best
- Which type of social site or digital campaign CTA delivered the best conversions in terms of quality of leads to actual sales conversions
- Which CTA resulted in adding more subscribers or users downloading an app
- Which campaign CTA delivered maximum user email subscriptions etc
These are some of the core metrics that key decision makers across organization’s usually focus a lot on.
These metrics will help you understand how to budget for a successful ROI based digital marketing campaign.
Are there any other key metrics that you use to measure and track for a digital campaign ROI?
Do share your comments and or views based on your experiences too. Would love to hear from you.
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