Marketing metrics monitor how effectively promotions are tracing to key performance indicators (KPIs) and quantify their success. They are one of the most crucial aspects of every promotion, and if it was not for them, marketing crews would have no way of knowing whether their marketing plan is successful. Let us go through the fundamentals of marketing metrics and KPIs, present some useful indicators for digital marketers, and discuss which solutions can help you successfully monitor campaigns.

What is the definition of marketing metrics and why do they matter?

Marketing metrics is a quantitative technique to tracking performance and an important marketing measurement tool for establishing a campaign’s effectiveness. For the finest marketing analytics, it’s important to look at how your campaign influences the behavior of your target audience. The most important marketing metrics to track are those that influence your business objectives, which may be sales made for one promotion but incremental reach for another. Marketing analytics assist marketers to optimize current efforts and prepare for future initiatives by allowing them to see how effective their campaigns are.

According to a Google research conducted in collaboration with MIT, 89 percent of top marketers utilize strategic metrics to analyze the efficacy of their efforts, such as gross revenue, market share, or customer lifetime value (CLV). The following are some of the advantages of utilizing these and other metrics:

  • Having data to aid in making well-informed decisions
  • Knowing which channels give the best return on investment
  • Justification of marketing expenditures and budget allocations in general
  • Results that are improving.
  • Getting a better understanding of how and where to increase lead conversions

What are some marketing metrics examples?

There are hundreds of indicators marketing specialists can employ to measure the effectiveness of a campaign—just it is a matter of picking the best one for each approach.

Different metrics provide you with different types of information. Email openings and clicks, for example, can reveal how engaged your audience is, whereas the unsubscribe rate could reveal whether they find your material engaging and relevant. Advertisement impressions and video views may be used to gauge the extent of your campaign’s exposure. Cost-per-action may be used to gauge the success of your marketing strategy.

Consider the channel you are utilizing and who will be your audience who will be looking at the information to make business choices when choosing the correct marketing metrics. The metrics you use for various marketing positions will also change. An SEO expert could be interested in tracking organic web traffic, but a social media marketing specialist might be interested in tracking ad clicks and impressions. Senior managers will want to see a summary of each marketing channel’s data and performance, while managers will want to go a bit deeper to understand performance daily.

Here are some KPIs for different marketing channels that may help marketers make better judgments about how to spend their money:

Digital marketing: impressions, cost-per-action, click-through rate

Social media: impressions, follower count, engagement rate

Email marketing: emails that are opened, forwarded, and unsubscribed from

SEO: organic traffic, keyword average ranking, and search volumes.

What are the benefits of marketing metrics?

Marketing metrics are important because they help firms determine if campaigns are successful and provide data that can be utilized to better future projects. They assist marketers in determining how their efforts are contributing to their business goals and in making decisions on how to improve their promotions and marketing programs.

These data may assist a marketing team to determine whether it has met its objectives in terms of attracting new clients, increasing awareness, increasing engagement, increasing sales, increasing lead creation, and more. These analytics may also be used as an immediate alarm system if marketing efforts are not operating as intended, and they can aid in making informed decisions to change campaigns in real-time.

Ultimately, marketing metrics are the most common approach for marketers to demonstrate the value of marketing and advertising to their firm or organization. These findings are important beyond continuous monitoring and campaign planning since they may inform yearly budgets and headcount.

Here is a list of key phrases, along with definitions and examples for different marketing approaches, that you may utilize to create a high-impact portfolio of bespoke marketing analytics for future campaigns:

Mobile Apps

The technique of advertising your business to mobile device users is known as mobile marketing. When done correctly, mobile marketing gives customized, time- and location-sensitive material to consumers or potential customers via smartphones, allowing them to obtain precisely what they need, when they need it, even if they’re on the go. 

In today’s digital age, any business must have a presence also on mobile platforms. In order to retain optimal management and knowledge of your brand’s applications, it’s critical to track app data. We will identify the most essential KPIs in mobile marketing and present a few techniques to assist you to improve your performance in this part.

Traffic Source

This measure simply indicates how the user discovered your app. It may be used to track your advertising messages and determine which channels are most effective. A large volume of downloads from a specific source indicates that it is efficient and it is reaching the intended audience.

Number of Downloads

The number of users that have downloaded your software or contact from a given source. You may track downloads to discover how engaged your viewers are and where your calls to action are most successful.

Cost Per Download

Similarly to Cost Per View, this is a measure that is determined by dividing your total advertisement expenditure by the total number of installs of your app.

Onboarding Sequence

It is used to determine whether or not the activation step was successful. This may be opening an account, adding a first friend, making the first transaction, and so on, depending on your app.

Activation Percentage

The percentage of individuals that downloaded and finished the registration process for your app.

Active Users

The number of people who regularly use your mobile app.

Average Session Duration

A session is described as a time of engagement on a website that begins when a user accesses the app and ends when the user either inactivates or exits the app. The longer time a person spends on your app, the more likely they are to return, join up, buy a product, and create a connection with a company. 

Monitoring the Average Session Duration gives you the chance to discover how much time users spend on your app’s content on average. If this figure is low, it might mean that your app or content is uninteresting or difficult to utilize. Several benchmark studies have shown that the typical session lasts between 2 and 4 minutes. Apps with an Average Session Duration of 2 – 4 minutes are likely to deliver extraordinary value to the user, either in the form of excellent material or information that is extremely relevant to the reader. 

Individual session time is not the same as Average Session Duration. All sessions are documented based on engagement hits, but Average Session Length is computed by dividing total session duration by the number of sessions. An engagement hit is simply a triggered event that you monitor. Assume you track video begins as an event. Only when a user watches a video for the first time does an individual session begin. Individual session time is estimated depending on (non-interaction) hits if no engagement hits occur throughout the whole session.

Uninstallation Rate

A measure that informs you how many individuals have removed your app from their devices. It’s also crucial to examine how long they’ve been installing the software.

Percentage Of Free to Paid Conversion

The percentage of regular users who upgrade to premium status.

Purchase Period

The time it has taken for users to upgrade to a paid version.

Percentage of Operating System Used

This indicator allows you to see what proportion of people from various operating systems have cooperated with your content. You will be able to compare iOS and Android users.

Daily Active Users

Also known as DAU, is the number of people who use your app on a daily basis. Today, with roughly 28% of applications being deleted during the first 30 days, there’s no assurance that if someone installs your app, they’ll use it. Your DAU mobile app stats may assist you in determining how engaging or beneficial your app is to those who download it.

DAU varies widely depending on the business in which you work. DAUs may be the most significant KPI for applications like Facebook and Instagram, for some like a healthcare app, they may not rely on DAUs to measure their growth trajectories. The first step is to determine the significance of this measure in relation to the industry in which you operate.

Weekly Active Users

Also referred to as WAU, is the number of active visitors of an application who have actively interacted with it at minimum once every week. An active user may be either a paid or non-paying user, such as one participating in a free trial. A nickname, an email address, or a user id may all be used to identify a specific user. 

The frequency with which an application is used might vary based on the type of the program, the environment in which it is used, and the user’s function. In general, weekly apps encompass forums and online communities, as well as certain analytics tools. 

The Weekly Active User statistic measures an application’s popularity among individual users. Low or falling user activity may be an early warning indication of probable churn since it indicates that consumers are not utilizing the program often enough to obtain continued value from it. 

It is critical to distinguish between measuring an application’s weekly active users and weekly active accounts since users are a subset of accounts for most SaaS apps. Analyzing active users may reveal how beneficial an application is to several individual users of an account, as opposed to merely account level involvement.

Monthly Active Users

Or simply known as MAU, is the amount of people who use your app on a monthly basis. 

DAU, WAU and MAU figures should constantly be increasing; otherwise, you’ll need to use techniques like push notifications to get consumers to return. These metrics may also provide information on the days and weeks when your app’s users are most active, which you can utilize to design limited-time, conversion-focused campaigns.

Dormancy Rate

This metric counts the number of consumers who haven’t used your product or app in a certain time period.

Affiliate Marketing

Affiliate marketing is the technique through which an affiliate gets a commission for promoting the goods of another individual or firm. For the affiliate it is as simple as finding a product you enjoy, promote it, and getting a cut of the profit. Affiliate connections from one webpage to another are used to monitor sales. Aside from search tools, affiliate marketing has grown in importance as a means of growing online traffic. Here are several metrics to keep track of how well this strategy is performing:

Earnings Per Click

This number represents the average profits earned by 100 clicks on an affiliate marketing hyperlink or advertisement. It can be simply calculated by dividing all of the affiliate earnings by the total number of clicks from the affiliate.

Total Revenue by Affiliate

This measure represents the money produced by each affiliate.

Subscribers

The number of persons who have opted in to receive emails (such as ‘newsletters’) or other alerts when new entries are published (such as with social platfrom feeds). Your subscribers are generally your most ardent supporters, so seeing this list expand will give you an idea of the degree of interest and trust in your company.

Cost Per Form

This measure refers to the cost of visitors completing a form. Typically, an agreement is reached on enrollment volume and a fee per registered user in affiliate marketing. The cost of completing a form is substantially lower than the expense of running a campaign per lead.

Lead Through Rate

This is the amount of leads who completed a survey on a homepage divided by the total number of clicks received by the landing page.

The only way to generate greater outcomes over time is to have total control over your marketing activities. The metrics listed above, when applied appropriately, can assist you in successfully managing your digital advertising and marketing plan and will stop you from overlooking any elements in the process.

Measuring these data may benefit marketing teams in a few crucial ways, demonstrating why marketing analytics are important: 

  • Metrics can indicate success: Marketing may be somewhat unexpected, but rather than depending to experimenting to establish accomplishments, advertisers could use metrics to illustrate whether or not a marketing effort was effective. 
  • Metrics may assist boost ROI: Marketers must be concerned with ROI about as much as they are with their bottom line. Marketing analytics may reveal specific actions and campaigns have directly contributed to the bottom line and can assist marketers in determining which activities provide the highest ROI. 
  • Metrics may assist you in justifying marketing costs: When developing budgets, marketing analytics may assist in determining which channels of distribution and activities merit more or less spending based on historical success. When it comes time to explain budget increases and measure marketing contributions to the business as a whole, this information may be handed on to stakeholders and executives. 
  • Metrics may provide you with useful information: Without marketing analytics, your marketing staff would have to make marketing judgments based on anecdotal information. Marketers may utilize measurements and analytics to guide marketing choices more successfully if they monitor the correct data. 

Marketing analytics may provide you critical information about your prospective consumers, their habits and behaviors, the best channels to reach them with, and the content that truly works to transform them into paying customers. 

Please remember that a given marketing department might monitor tens or even hundreds of marketing KPIs to enjoy these significant advantages. Knowing which metrics are the most essential to measure may offer marketers a leg up when it comes to using metrics and statistics to guide their marketing operations and strategy.


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