Key Performance Indicators, or KPIs, are metrics that organizations can track to more thoroughly understand how successful they are at achieving their goals. Marketing performance metrics shine a light on what a business can do to boost success.
It’s particularly important to track digital and email marketing campaign metrics when looking for ways to drive revenue. Companies often devote substantial amounts of time and money to marketing campaigns. By keeping track of marketing KPIs, they can learn which tactics are providing a strong return on investment, and which are less effective.
Specifically, they should focus on the following when studying digital marketing KPIs:
Track Sources to Understand Marketing Campaign KPIs
People may visit a website through any number of potential sources. Some users type the URL directly into their browser. Some find the site by performing a related web search, and others still are referred from outside sources, like links on other websites, social media, or within emails. All of these channels can affect your marketing campaign metrics.
Tracking where most of your traffic comes from helps your team determine if a particular marketing strategy is working. Perhaps you want to know if subscribers to your email list are visiting your site regularly after opening one of your messages. Tracking this email marketing KPI will provide the insight you need to determine if an email campaign is helping to boost traffic and/or conversions.
Look at Conversion Rates
If your goal is boosting revenue, you should focus on methods that have proven to yield a substantial return on investment. For example, email marketing remains popular because it delivers an average return of $44 for every dollar spent.
In the course of email marketing, to calculate how effective your emails are, track the conversion rate. This marketing KPI doesn’t just tell you how many customers opened an email or read through it. If, for instance, the call to action at the end of a message urges the reader to buy one of your products, the conversion rate will tell you approximately how many actually have.
Calculating conversion rates as a marketing campaign metric is fairly simple. Select a specific goal from a recent email or campaign – perhaps you just completed an email campaign that marketed a new product exclusively available to your subscribers. Divide the number of purchases by the number of successfully delivered emails, then multiply the result by 100.
There’s no “good” conversion rate that applies across all industries. You’ll have to study industry standards to determine how your rate compares. However, taking this step in tracking email marketing KPIs will provide a more accurate depiction of a campaign’s effectiveness.
Determine Number of New Customers and Total Monthly Revenue
Social media and email campaigns are helpful because they allow you to track the essential marketing performance metric of the amount of new customers a particular campaign brings in.
That said, attracting new subscribers to your email list does little for you if those subscribers don’t make purchases. You want to monitor the relationship between your growing customer base and revenues to determine a campaign’s revenue-earnings potential. Monitoring this digital marketing KPI will allow you to save money on ineffective campaigns, and direct efforts toward ones that boost your ROI.
For example, you can divide your monthly revenue by the number of new subscribers your email list attracted that month. This marketing campaign metric will help you estimate the value of a new subscriber.
Calculate Revenue Per Email to Distinguish KPIs Between Marketing Campaigns
Tracking digital marketing KPIs often makes it easier to determine how much money to spend on a campaign. That’s why you should track Revenue Per Email and similar advanced metrics.
For example, perhaps an email you sent yielded purchases worth $10,000. In this scenario, assume that 100,000 subscribers received the email (whether they opened it or not).
If you divide the revenue total by the number of successful email deliveries, you get 0.10. This means, on average, every successfully delivered email provided 10 cents in revenue.
This marketing performance metric is also helpful if you want to measure the effectiveness of two different approaches to the same campaign. For instance, A/B testing may initially tell you that one version of an email yields a higher open and conversion rate than another.
However, there are instances when an email that may not yield the highest conversion or open rate actually delivers a higher RPE; this may happen if the content of the email results in customers making larger purchases. If your goal is to boost revenue, that should be the version you use.
While digital marketing is very effective, you still need to be vigilant about monitoring your campaigns. Tracking these digital and email marketing KPIs will tell you when a campaign is working, when it’s not, and in many cases, what you can do to improve it.