The purpose of digital marketing, or all marketing, for that matter, is to promote a company's products or services, thereby increasing sales and generating revenue.
However, digital marketing services, either in-house or outsourced, usually comes at a price and is consider an investment.
Anytime a company invests in something or anything, they want to see results or a return on their investment (ROI).
There are standard digital marketing metrics companies use to help measure ROI.
Those marketing metrics include:
- Conversion Rate – The number of leads or website visits converted into sales. They can be done by channel or device.
- Conversion rate channels include:
- Organic Searches
- Social Media
- Paid Search
- Conversion rate devices include:
- Apple iPhone
- Apple iPad
- Samsung Galaxy
- Laptop computers
- Desktop computers
- Cost per lead or how much the company pays for a new sales lead. The formula for calculating the cost per lead is Total Ad Spend divided by Total Attributed Leads
- Total Ad Spend is the amount of money used on a set of ads
- Lead is a potential customer
- Total Attributed Leads are the number of times a lead was gathered and attributed to an ad (by the client's server)
- Lead Close Rate
- Cost Per Acquisition or how much it costs on average to acquire a new customer The formula for calculating the cost per Acquisition is the Total Marketing Costs divided by the Number of Sales Generated
- Average Order Value – Average Order Value (AOV) is calculated by dividing total revenue by the number of orders
- Customer Lifetime Value – This metric tells you what the average consumer will spend over their lifetime as a customer. Using a bell curve, 20% of your customers are non-profitable, 60% are profitable, and 20% are very profitable.
Additionally, there are lists of metrics you can use to measure digital marketing ROI based on the tactics you use.
- Email – Open rate, click-through rate, bounce rate, unsubscribe rate, conversions, and leads acquired
- Social Media – Engagement rates, clicks and click-through rate, conversions, leads acquired, and new fans or followers.
- Landing Pages – Traffic, unique visitors, returning visitors, total page views, time spent on a page, actions taken, and conversions
- Blogs – Traffic, clicks, time spent on a page, unique visitors, returning visitors, actions taken, and conversions
A professional SEO company can provide you with these metrics to help you determine ROI. Growing businesses focus on leveraging the strengths and core expertise of a professional SEO company to achieve increased revenues and improved profitability.
Nevertheless, challenges for proving marketing ROI exists.
Roadblocks to proving marketing ROI include:
- Attributing social and website content to revenue
- Aligning KPI's to overall business goals
- Attributing leads to revenue
- Collecting the appropriate data
- Determining the suitable KPI's to measure
- Analyzing the data
- Lack of staff expertise
- Lack of technology resources
- Lack of technical expertise
With key performance indicators (KPI) in place, you'll know how close you are to reaching your goals.
Key performance indicators are quantifiable, measurable, and actionable. They measure factors that are critical to the business's success. They are tied to business goals and targets, they should be limited to five to eight metrics, they should be applied consistently throughout the company, and they are irrefutable.
On the other hand, key performance indicators are not vague or unclear metrics. They are not metrics that are not actionable. And they are not reports or an exhaustive set of metrics.
A professional SEO services company can partner with your marketing department and do the heavy lifting necessary for digital marketing success.
For those businesses engaged in a business-to-business environment, specialized B2B SEO services are a must. When choosing a professional SEO company, you will need to look for specific capabilities.
The capabilities to look for include:
- Cluster-based keyword research
- Onsite SEO implementation
- Analytics and conversion tracking
- UX analysis and optimization for user metrics
- Offsite link-building and digital PR
- Technical SEO monitoring and execution
- SEO pillar content strategy
- Leading and lagging SEO key performance indicator reporting and attribution
- Local and national professional strategies
- Video and image SEO strategies
- Link profile management and penalty avoidance, including recovery strategies when necessary
A full-service optimization and search marketing program is geared towards driving relevant, targeted traffic to your website. Professional services include everything from site audits and backlink development to technical optimization and reporting.
Access to real-time ranking dashboards and comprehensive reporting will differentiate you from your competitors.
The professional SEO process begins with competitor research and includes SEO keyword research, onsite optimization, offsite optimization, and SEO reporting.
The top benefits of hiring a professional SEO company include:
- Branding awareness and business goals – Professional SEO companies use multiple SEO strategies to ensure your website ranks higher, resulting in improved traffic and users who can quickly become customers.
- Better Website – The main reason to hire a professional SEO company is to improve your website. Professional firms have well-trained teams equipped with the knowledge and skills necessary to achieve a business's marketing goals.
- Network Building – Hiring a professional SEO company can expose you to a massive network that includes diversity. Studies reveal that the average American spends close to seven hours each day on the internet. Successful businesses use this online presence to create lasting networks with potential consumers.
- Time Efficiency – Running any business requires handling multiple time-consuming tasks. Professional web designing companies understand SEO and can create a functional website within a short amount of time.
- Customized Services – A credible professional firm will help you strategize on what works best for you and your company. Every business has strengths and weaknesses, and the marketing model employed will be different from other firms.
Measuring your digital marketing ROI is simple with the right professional SEO company. It is comforting to know that when you hire a professional SEO company, they can help you drive ROI.