One of the keys to success in any digital marketing activity is to know your numbers and metrics.
This contrasts with traditional marketing, where often it is not possible to directly measure the impact of marketing activities, in digital marketing, this can be done accurately.
Therefore, a very significant part of any digital marketing activity is building a measurement and analysis framework, to generate insights and optimize accordingly.
All with the aim of improving performance over time – expanding operations and marketing budgets along with maintaining a high return on investment (ROI).
Web Analytics gives a better understanding of the following (in the context of digital marketing):
Accordingly, decisions regarding the above sections are made solely based on data (data-driven), without the need for guesswork, speculation, opinions, or gut feelings.
Digital marketing is skyrocketing and so is the return on investment (ROI) when working closely with numbers and results.
We provide a range of services in the field of web analytics & measurement:
There are dozens of useful metrics for analyzing a digital marketing activity. The following are the main ones.
Cost per Mille (CPM) – How much do I have to pay for 1000 ad impressions. A key metric of advertising activity on Facebook and in general in media buying.
Gives an indication of the cost and degree of exposure that can be achieved according to a given budget.
Mainly a metric that indicates the efficiency and not effectiveness, because even if we get high exposure and reach with low cost, if the target audience is irrelevant we didn’t do much.
Cost per Click (CPC) – The cost we pay when a user clicks on our ad. There is no high or low cost-per-click, but a cost-effective click or not.
The logic is that even if we pay a 100 NIS per click and it brought a customer who bought from us for 10,000 NIS, we probably made a good deal.
Therefore it’s important to build a measurement framework that takes into account the average customer lifetime value (LTV).
Cost per Lead (CPL) – what is the cost of our lead or how much does it cost us to generate an inquiry from an interested customer.
Return on Investment (ROI) – Is our activity profitable or not, are we successful in our business.
The main and most important metric that guides the activity and according to which most decisions are made.
For every NIS we spend, we want to get at least one NIS back.
Return on Ad Spend (ROAS) – A return on investment metric in relation to advertising costs only. Very useful in measuring e-commerce campaigns and an excellent bidding strategy in paid promotion.
Customer Lifetime Value (LTV) – A very important metric from which an initial advertising budget can be deduced as well as the degree of flexibility in your marketing budget.
If, for example, every paying customer buys from us on a one-time basis and for a relatively small amount, we will probably not be willing to pay much to acquire a customer (CAC).
On the other hand, if we offer a monthly service on a regular basis and the customer is expected to buy from us over time and possibly also additional products in the future, his customer lifetime value is high and accordingly also the customer acquisition cost we will be willing to invest.
Therefore, another good reason to increase the customer lifetime value is the flexibility it generates in the marketing budget.
Customer Acquisition Cost (CAC) – This metric, in contrast to customer lifetime value, varies according to the marketing channel.
E-mail marketing vs. paid promotion vs. SEO etc. will have a different customer acquisition cost.
At the same time, in B2B marketing, most of the time it is difficult, on the verge of impossible to measure the specific contribution of each marketing channel and how many customers it acquired.
This is due to a non-linear customer journey and a long learning process, especially in cases where the sales cycle takes several months.
Therefore, in B2B marketing it is recommended to examine the customer acquisition cost in relation to the total activity, and the contribution of each marketing channel according to changes in general metrics of the total activity such as the number of leads, cost per lead, cost of acquiring paying customer and more.
Qualified Leads – In B2B companies, there are two main indicators for the marketing and sales process:
There are various lead management systems and CRMs that manage this type of process and provide an end-to-end solution in terms of sales & marketing alignment and the leads qualification process (MQL to SQL) to improve the overall results.
Your own unique criteria should be set to determine what is MQL and SQL.
Such criteria can be company size, person role, project size, geographic location, intent, needs, and more.
According to such criteria, it is possible to determine whether the lead is qualified for marketing and can enter a qualification process to eventually turn to SQL, and be transferred to the sales department as an opportunity.