There’s such a thing as too much data. With the abundance of tools available for marketers, you can extract so much data leaving you overwhelmed or worse, misdirected. So it leaves us with the question: what exactly should marketers be measuring?
Not all metrics apply to all businesses. Don’t waste your time analyzing data that doesn’t align with your marketing goals.These 7 marketing metrics, or performance indicators, can provide information you need to keep your marketing campaign on track in 2020.
Overall Website Traffic
Tracking and analyzing website traffic gives you additional dimensions when measuring the results of your campaign. Statistics show that more than 60% of direct mail recipients have visited the business website after receiving the mail piece.
Website traffic can also be broken down to new visitors and returning visitors, which can give you an overview of who your audiences are. It also gives you an insight into how effective your content is.
Traffic can also indicate your website’s health. For example, a decline in traffic could mean a technical problem like broken links or a Google algorithm penalty. This requires changes to your search engine optimization efforts.
Conversion Rate and Response Rate
Conversion and response rates are valuable for evaluating audiences and marketing strategies within the same channel. How many recipients actually responded to your direct mail? How many valid leads did you generate from your marketing efforts? Most importantly, how many responses have been converted to customers?
It helps marketers define the right audience segments and determine what creative approach would have the most impact. Analyzing this metric can help your business make better marketing decisions.
Customer Lifetime Value
Customer lifetime value (CLTV) is an important metric to monitor. It varies from channel to channel and audience segments to segments. The easiest equation for determining the CLTV is Purchase Frequency x Average Order Value x Average Customer Lifespan. To make the number more insightful, reduce that number by the acquisition cost and retention cost.
Not all leads, prospects, and customers are equal. The benchmark for response rates, CPAs, and CPLs will vary according to your LTV. If your CPL increases from one source to another, you should minimize or drop the highest costing one.
Cost Per Lead
Knowing how much it costs you to generate responses and qualified leads is important to make informed business decisions. Cost per Lead (CPL) helps you determine if it’s costing you more than what the lead actually generates in revenue. If that’s the case, you might need to adjust your budget from digital to direct mail or direct mail control packaging.
Cost per Acquisition
As much as it’s important to determine how much it’s costing you to acquire responses, it’s more important to calculate how much it’s costing you to acquire leads (conversions).
Cost per Acquisition (CPA) helps you optimize your marketing strategies across channels and find ways to improve your conversion funnel. Add a follow-up mailpiece, email or phone call to reinforce your message and drive stronger conversions.
Most businesses have lead generation in customer conversion silos. Break down those silos, look across the entire funnel, and adjust and evaluate your marketing to reduce CPA.
Social Reach and Engagement
Knowing how many followers you have on Facebook, Twitter, and Instagram is important as it helps you monitor your brand’s growth online. Social media influences purchasing behavior. It also helps identify marketing opportunities and points of engagement in your funnel.
Aside from followers, monitor your pages’ engagement too. An “engagement” is defined by followers clicking, liking, sharing, mentioning, or commenting on business posts. A good benchmark for engagement is about 2% to 5%. If you fall below this, your content isn’t resonating with your followers.
Digital Subscriber Rate (Opt-in)
As digital privacy laws expand, it is getting more difficult to append third-party data to your customers. First-party data sources will be the primary source, which means businesses are forced to invest more on marketing strategies like content and email to drive people to subscribe directly.
Building trust with your audience and producing relevant content will be the value key to generate those opt-ins.
If you’re interested in improving these key 7 marketing metrics using direct mail, call OverflowWorks.com today.