Posted on 4 March, 2020 | 5 mins
Converting campaign clicks into hard-won customers is an art form, and it turns out the devil is in the data. What metrics should you be monitoring, and how do you use them to optimise your marketing campaigns?
Marketing analytics has changed how campaigns are informed, managed and measured. Data guide our marketing efforts – used to gauge the success of campaigns, identify areas for improvement and inform future campaigns to increase ROI (aka return on investment).
Marketing metrics matter
Marketing metrics demonstrate the effectiveness of campaigns across your marketing channels; they are key performance indicators (KPIs). They can be used to measure how campaigns are performing and identify areas requiring improvement, to support a better understanding of your target audience and what resonates with them, to monitor trends and to measure the ROI of each campaign you run.
There are umpteen metrics you can choose to measure; however, not all are relevant to your business. To be effective, identify those KPIs that have a direct impact on your revenue and the marketing channels that generate the most conversions (i.e. visitors that complete the desired action, for example, purchase your product or service).
The conversion rate tracks the number of people who complete a desired action (“convert”). An excellent conversion rate means a healthy ROI and indicates how effective your marketing is. The desired action might be anything from purchasing a product (sales) to filling out a form, subscribing to a newsletter or downloading an app (leads).
Whether a conversion represents sales or leads, the higher your conversion rate (the percentage of people who convert) the more effective your marketing.
The conversion rate metric does have limits. While it measures overall effectiveness, it doesn’t tell you how many leads are likely to result in a sale, if leads are qualified, or how much revenue a lead might be worth to your business.
Calculating your conversion rate
If yours is an eCommerce site, a sale is your ‘desired action’, and your conversion rate will be the percentage of people who made a purchase divided by those who engaged with your adverts/ website.
Total sales/total site visitors x 100 = conversion rate
If product sales are not your focus, you’ll want to measure leads. Your conversion rate will be the percentage of people who take a defined action divided by those who engaged with your adverts/ website.
Total actions/total site visitors x 100 = conversion rate
Tracking conversion rates
Marketers love to track performance, and the tools you use are built with this in mind. So, how can you track what?
Google Analytics enables you to track conversion rates on your website, as well as other valuable metrics such as sources of traffic (“visitors”), page performance and exit and bounce rates.
Google Analytics also tracks your site’s sources of traffic – or visitors. This metric enables you to identify how marketing channels are contributing to your conversions – for example, your Google Ads campaign, social post, email or other. Called marketing attribution the benefits are an informed marketing strategy, effectively allocated budgets and increased sales and improved ROI.
Google Ads allows you to advertise within the ‘Google Network’ – Google search results pages, Google Maps, Shopping and other search sites that partner with Google to show ads.
There is a free Google Ads conversion tracking tool that you can use to track conversions when someone enters your website through an ad. This tool lets you see how effective your campaigns are and adjust them as required.
There are simple actions you can take to improve your conversion rate, for example, consider adding more specific keywords and negative keywordds (words that do not trigger your ad).
The socially converted
Your social media activity feeds into your sales and marketing efforts. Measuring social traffic and conversion metrics provides insight into the effectiveness of your social media campaigns.
For example, calculating conversion rates helps you to understand whether the messages you share resonate with your audience and which platforms are generating the most traffic.
Measuring views to actions – i.e. the actions generated by the content posted vs the total number of views – can give you an idea of how effective your social media activities are.
Email marketing campaigns deliver a CTA (call to action) into your current (and potential) customers’ inboxes. Base what a conversion is on the objective of your marketing email – for instance, email opens, products purchased, subscribes or blog post views.
Tracking email opens and click rates over time helps you to evaluate how captive your audience is and whether your content is engaging them. From there, get stuck into the meaty details, evaluating which links – if you included more than one – garnered the most clicks/ conversions.
Improving your conversion rate
If you find your conversion curve falling flat, we’re delighted to tell you that there are simple ways to boost it by engaging in a little conversion rate optimisation (or CTO for the acronym lovers).
The following are but a few to get you started:
How do you know that your marketing campaigns are the best they can be? Testing.
Split, or A/B testing compares two or more versions of a campaign – a webpage, email, or other – to see which generates more conversions. Campaigns should be mainly the same – shared objective – with a fundamental variable so you can contrast and compare effectively.
Variables might include:
- headlines and subject lines
- your offer – description and CTAs
- Media – no images, static images, video.
Even if you strike it lucky with an effective campaign, it’s worth testing to see if you can improve further!
Structure your sales funnel
Guide your customers – current and potential – on a structured journey down through the sales funnel from awareness to purchase. There are several touchpoints customers pass through in the sales funnel, ensure that you are engaging them at the right time with the correct information.
People are on the go, and so you need to ensure that your digital presence is mobile. People are looking for a seamless experience and, if you don’t want them to bounce when they land on your website, you need to ensure that it’s fit-for-purpose.
Content is calling
Keep your CTAs compelling. Be creative in your use of language – try incorporating dynamic CTAs such as ‘discover’ or ‘inspire’, or assertive CTAs like ‘buy’ or ‘join’. Encourage customers by using pre-emptive phrases such as, “Yes, sign me up!”
Also, think multi-media! Keep your text to a minimum and consider images and video.
Focus on benefits
Forget features, focus on benefits. Show your customers that you understand their pain points and outline clearly how your product or service answers these – what the benefits are to them.
Customer knows best
Trust is vital, and people trust their peers. User-generated content is an excellent way of promoting your product; people trust online reviews, and they provide valuable insight into how the product works for people who likely have a similar background as potential customers. Win!