For the last 3-4 years digital marketing has moved away from opinion based decisions and into fact based decisions. It is not enough to say that it works well for a campaign whose goal is to achieve sales. Yes, it is good but how good? Did it reach its ROAS (return of ad spend) goal? Is there any potential for further improvement?
With KPIBooster, which we released the alpha version last week, our aim is to reach the answers of these questions and similar questions easily. So, this week, let’s take a glance at which KPI metrics are important and which we analyze when we grow accounts.
ROAS (Return of Ad Spend): ROAS is our favourite! It shows us how much we earned when we spend a dollar. ROAS is the easiest way to measure if the money you spend to your marketing campaigns paid off or not, if it is measured right it will help you to allocate your budget to the right campaigns.
Customer lifetime value: Shows how much revenue a user will bring you during the period they stay your customer. From the moment the user meets your brand, it is up to you to increase the value! If we think of it as a marketing funnel, the user who we spend our budget more on to introduce the brand at the top of the funnel, increases LTV as it goes to the bottom of the funnel and becomes a part of the segment we treat differently using special communication and campaign structures.
Customer acquisition cost: Which we also use in LTV, shows us how expensive the user acquisition is. It is important to analyze LTV and customer acquisition cost metrics together when we determine our budgets and targets of our marketing channels because you should throw out a herring to catch a whale.
Customer retention rate: This metric, which is another part of the marketing funnel, tells us if we kept the new customer or not, and also if we can pass to the next step in the funnel. Well, do we know in which step of the funnel we lost our customer? Do we support the user with different campaigns to move to the next stage? Our aim should not be only to know the rates but also to find the answers to these questions and to take action.
SEO visibility: Does a user see your brand when they search for it on Google, especially a user focused to find the product they are searching for but does not have a habit of shopping from you? You don’t want to lose those users you can get at no cost, or even lose to your competitors, doyou? Increasing your SEO visibility in keywords related to both your brand and your products, and increasing the number of customers you earn without a fee will support not only your brand awareness but also your revenue.
Revenue per session: Revenue per session, a metric also provided by Google Analytics, allows you to compare the impact of all channels on which you show your marketing activity (regardless of paid, organic or email). It let’s you know which channel throw the knockout punch for you and this gives you hints to optimize the communication language and campaign content.
Hope to see you next week with a new article!