The 5 Metrics Every Marketer Should be Tracking
Data-driven approaches are, by far and large, the most effective approach to marketing. Being able to rely on data analysis allows a marketer to make smart choices, be flexible enough to follow new trends as soon as they change, and make the best of different advertising channels. Knowing how to use all this seemingly infinite amount of data could be intimidating though, so let’s see what the most important metrics every marketer should be tracking are.
- Bounce Rate
A page’s Bounce Rate is the percentage of visitors that just jump off the boat and leave your website as soon as the view a page. A site or (on a more granular level) a page with a high bounce rate is performing extremely poorly. This could happen for several reasons. For example, your content could be not engaging at all or the page is not working as it is supposed to be (i.e. it can’t be read or viewed). Worse case scenario you didn’t target your audience or keywords well enough, so people quickly realize that your page is not what they were looking for. Be careful that a high bounce rate may negatively affect all your page rankings, too.
- Time on Page
The Time-on-Page is, as the name aptly suggests, the time a visitor spent reading or just staring at your page with a flabbergasted look. So, provided a user didn’t bounce off website immediately, he will spend some time on it – the more, the better. In fact, time-on-page (or site) is a metric used to determine consumers engagement and is a key indication of how successful that content is in grabbing the attention of relevant visitors. The longer a visitor stays on a page, the higher the chance he will buy or come back at a later time (returning visitor). Similarly to what happens with high bounce rates, a low average time time-on-site may negatively affect your rankings.
- Traffic Sources
Knowing where your traffic is coming from is a very efficient method to estimate your ROI. How much did you invest in Facebook ads? How many people actually come from the various social media? Are your SEO efforts paying off? Was that banner you paid so much money worth its price? Every successful website wants a healthy mix of referral, direct and organic traffic, but knowing what is actually providing you with the best results will help you chose where do you want to invest your marketing budget.
- Click-through rate (CTR)
Click-Through Rate (CTR) is the percentage of users who end up clicking on a banner or advertisement featured in a landing page. In other words, it measures the interest that ad was able to generate and it is critical to reduce your marketing expenses (or boost your ad revenues). CTR usually ranges from 2-3 clicks per 1,000 impressions to up to a few dozens. Since ads are useful to support many site through advertising dollars, webmaster constantly try to navigate around the natural instinct many users have to ignore ads by placing them in “sweet spots” through the page’s content. A high CTR also signals Google AdWords that that ad makes searchers happy, and improves his Quality Score. Higher quality scores reduce the cost of placing the ad, and can then lead to cheaper ads.
- Conversion Rate
Although it is somewhat similar to CTR, conversion rate is ultimately the most important metric you need to track in a website. Conversion rate is the percentage of users who completed a given action on that page, such as clicking on a button, buying a product or filling out a form. When a visitor reaches your landing page, he will start reading its content and possibly navigating around your website. But if they do not convert into leads before they leave the site, you failed to gain any money. Having the highest conversion rate on every page is, hands down, your first and foremost goal if you want to increase your revenues.
Gathering the right data before you make any marketing decision represents the difference between making an informed choice and shooting in the darkness. The more data you have available, the more your business is going to grow and thrive.