Metrics that CEOs Look For While Analyzing Digital Marketing Report
After establishing a separate department and budget for Digital Marketing, CEOs need to see if it is adding value to the company. From organic SEO campaigns to Social Media promotions, the digital marketing team at any organizations needs to ensure that they are efficiently putting the budget and the resources at hand in use. The CEOs are responsible for answering the stakeholders and the board of directors hence they need to be updated with the accountable digital marketing team with a report.
Essential metrics that every CEO look for while analyzing the digital marketing report are:
Leads and conversions: Essentially any campaign works with acquiring leads. The conversion process of leads is a process of the users online clicking through the ads, ending up on the website and eventually performing the desired actions like filling a form, registering on the website, subscribing to the newsletter. Each of these conversions matter as they are the potential customers who are interested in spending their time and eventually their money on the product or service.
Essential Metrics the CEO will look for are
- Cost per Lead: For acquiring each of the lead online, what is the amount of money spent is called cost per lead. Suppose for every click online you acquire a lead then, the amount of budget set for the campaign divided by the number of leads will result in an amount each lead costs. A CEO would be interested in understanding the math to ensure the budget that needs to be assigned by the business.
- Conversion Rates: The rate at which the number of leads converts into a potential client for the business by performing the action desired is called conversion rate. Showcasing the conversions that each landing page has is essential for the CEO to understand which part of the campaign is helping the sales team.
E-commerce Sales: Every e-commerce brand works with various digital marketing strategies on different platforms to ensure sales. The CEO focuses on profit or losses suffered from a digital marketing campaign. Again the conversion rate is essential. After visiting the website portal (landing page) after clicking a link on Facebook video or through an ad on the website, the series of actions users follow is essential. From adding to cart to the payment portal, the user actions are essential to know if his conversion is essential or not.
- E-commerce Conversion rates: The e-commerce conversion is present on the Google analytics that can be tracked from there. In the monthly or weekly report, the metrics can be compared with the previous reports to analyze the benefits to the business.
- The Conversion Rate Report: Visit the Google Analytics, click on the E-commerce tab from the dropdown menu and the e-commerce conversion rate report will appear on the dashboard.
ROAS (Return on Ad Spend): The returns on ad spend analyses the total revenue earned in comparison to the total amount spent on a channel (like PPC). Different from the Return on Investment (ROI) and Return on Ad Spend (ROAS) is that ROAS showcases the amount how many leads does one get for a $1 spent whereas the ROI includes the operation costs and then displays the final profit.
- The ROAS Benchmark: The ROAS goal is set by each brand; there cannot be a set benchmark as teach organization is different in terms of goals. While some organizations have term 4:1 (that is 4 leads for $1 spent) a good ratio other might need a better number to stay profitable.
CLTV: A CLTV or Customer Life Time Value is the aggregate value of revenue earned ensuring the lifetime of a customer with the company. The prediction of net profits from a client is the number that can be earned via a customer in the long term. The prediction system works with accuracy and sophistication to achieve the correct values. In digital marketing, the CLTV is calculated by multiplying the average spend by the customer, the number of times the transactions have taken place, and the average length of relationship with the customer.
The advantage that digital marketing presents is that every analytics is available and hence it is easy to hold accountable for certain campaigns. Every report has a set of metrics that help the company measure and track the performance of the campaigns. Amongst various metrics that showcase the data-driven results, a set of digital marketing metrics are essential to business growth through promotions. A digital marketing report should contain certain things that the digital marketing team, as well as the CEO, should focus on.