The only sure way to know whether an online marketing strategy is working or not is to measure the results. You may be selling a lot of product but that does not necessarily mean that your strategy is working as it doesn’t automatically translate into profitability. There are certain metrics that need to be tracked to determine the effectiveness of a campaign. Here are the most important digital marketing metrics 2018.
1. The Average Order Value
Also referred to as the AOV, your average order value is one of the key metrics for any marketing manager. With this metric, you will be able to figure out how to make your clients spend more on your business every time they shop. This makes AOV the most important number to track when you want to understand your consumer’s spending habits. To get your AOV, you simply divide the total revenue for your business by the number of transactions. You don’t need to calculate your AOV every day, but it needs to be assessed over time.
2. Sales Conversions
You need a way to tell whether the number of sales you make in a day, week, or month is sufficient for your business. The sale conversions rates can help to measure the success of your marketing campaign. To get this figure, you simply divide the number of sales by the number of guests you got on your site. When you track your sales conversion rates, you can tell how much is converted from your website traffic. While you cannot expect to get 100% conversion rates, you should strive to increase the number at all times.
3. The Lifetime Customer Value
This is a metric that can predict the amount of money a client can spend before they leave your business. You calculate it by multiplying the single sale average with the repeat transactions average and the retention period.
Clients who stick to your business for a long time are more profitable. Marketers always strive to increase the lifetime value of their customer. This can be achieved by focusing more on customer retention than on customer acquisition.
4. The Cart Abandonment Rate
You can calculate the cart abandonment rate by dividing the transactions by the number of carts created. You need this metric to be as low as possible. Whenever a buyer adds a product to their cart, they are moments away from converting. If they don’t convert, you need to know what is stopping them from completing the sale.
Some of the causes of abandonment rates include high extra costs, complicated checkout process, website errors, lack of transparency, forced account creation, slow delivery, and declined credit card among other issues.
1. Revenue By Reference Source
If you are getting a flow of traffic to your website, you need to know where it is coming from. You need to track the revenue generated from referral sources to determine the most profitable channels for your business. According to www.seovancouver.ca, this is an important metric for both B2B and B2C companies. Take the necessary measures to improve on and incentivize the best sources of traffic for your business.