How to Track & Measure ROI and other KPI’s

Some agencies propose as many as 50 metrics. Depending on your sensitivity, you might list any number of KPIs. You can layer or combine them. But, you may want to emphasize those that also relate to your return on investment.

  • Customer Lifetime Value (LTV) has become increasingly valuable and informative in many ways. LTV measures customer loyalty. It is predictive, and indicates what profit you can expect to make lasting customer relationships.

LTV identifies the customers’ buying history. It’s an indication of whether you should focus on customer acquisition or retention. If, for example, the LTV is low, you must acquire additional new customers. If the score is high, you can direct your budget dollars to continuing customer loyalty rather than to securing new customers.

The LTV tells you how much your customers spend, how frequently they buy, and what incentives they prefer. So, investment in LTV is an investment in continued customer satisfaction which should be part of your B2B mission and digital marketing strategy.

  • Customer Acquisition Cost (CAC) totals your business expenditure on finding, qualifying, and converting potential customers. Those costs add all expenditures on marketing including marketing campaign costs related to acquisition, marketing- and sales-related wages, marketing and sales software and technology, professional services supporting marketing, and sales-related overhead. The sum is then divided by the total number of customers acquired.

A more accurate understanding comes from determining the CAC for each marketing channel.

  1. Organic Traffic will move your ranking higher on search engines. Increased traffic strengthens your brand and credibility. This is an upfront investment that may decline over time when credibility and trust are earned.
  2. Paid Traffic includes the ads you place and the keywords you bid on. These represent a monthly expenditure that you can budget, but the success depends on your decision making and execution. A full-service provider like Brand Anvil can help you meet and match the needs of your customer market and still control your spending.
  3. Social Traffic is complicated. Its success depends on the size of investment, social contacts made, conversions completed, content quality and frequency, and the market reached through respective social channels.
  4. Email Marketing only succeed if people are reading what your mailed content. Success depends on the content’s ability to sell and convert. Any KPI must correspond to marketing segmentation and product line. 60% of marketers report positive ROI on email, and 66% of customers have made at least one purchase because of an email
  5. Mainstream Media Advertising responses are more difficult to track. Tracking results is among the reasons digital marketing is preferable.
  • Social Media Reach varies from one social media platform to another. Those variations differentiate one from the other. You can only Tweet brief messages, Snapchat for short periods, Facebook on indeterminate timelines, and so on. But, you can count the frequency of Likes, Comments, Subscriptions, Followers, Shares, and the like. You, then, must calculate that feedback against revenues realized.
  • Mobile Traffic has fast become a major KPI. Buyers now prefer mobile devices for making purchases. That means they are coming to the device with ready-to-buy decisions, not to browse. So, unless your site is technologically adept for mobile screens, you are losing sales.
  • Landing Page potential depends on a clear, vivid, and navigable objective. It must present what the customer wants, how to do it, and what’s in it for him/her. As the first place to convert a customer, it must make it easy. But, you also need to know how the customer got to the landing page, how long they stay, and if they click through.