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Key marketing metrics

Social media: Let’s focus on engagement

social media
How important is fan growth to you and your organisation. Is it still the top priority, the right priority and the key metric you report back on?

If you want your followers or like count to increase you can if you wish pretty much buy them. But you’re likely buying bulk likes from people who don’t even have any interest in your brand or product. So why bother?

We believe that fan growth doesn’t matter if your audience isn’t engaging with your content. You can have as many followers as you like but if what you post gets no engagement, your followers have very little value for you, your organisation or your brand.

Focus on engagement rather than the number of followers

Whatever your social media objective, engagement is a far more important and useful metric. For example the level of engagement influences the probability of and the numbers of your audience who will see (referred to as reach) your content in their news feeds.

One important example of engagement is shares. Shares influence how many people see your posts.  Recent changes to Facebook News Feeds prioritise content that comes from family and friends over content posted by fan pages. Therefore it is essential to create content that your audiences will want to share with their own networks.

Another critical but currently often neglected component is reactions. Facebook has updated its news feed algorithm again, this time with an emphasis on your audiences use of ‘reactions’. The social network now prioritises reactions over “likes” when ranking your News Feed. According to the company, a reaction is a stronger indicator that you want to see similar posts to ones you like.

Monitor others

Don’t forget to monitor the social media engagement that your competitors are gaining as this can provide a useful benchmark over your social posts performance. Don’t just look at the posts but aim to delve deeper by splitting the monitoring of both organic and paid posts. If your competitors out perform you on their organic posts then it would suggest that their content resonates well with their audiences thus boosting their reach for ‘free’.

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Email bounce rates

email dreamstimefree_3027666

When an email can’t be delivered to an email address, it’s called a bounce. To calculate your bounce rate divide the total number of e-mails that bounced by the total number of e-mails sent. This gives you the total number of bounces per e-mail. If you multiply your bounce per e-mail rate by 100 you’ll get your bounce rate as a percentage.  You want this to be as low as possible.

If you experience high bounce rates in your campaigns there may be a number of reasons why this may be happening and ways to address it. These include:

Your list contains bad data

If you have a brand new list and the campaign linked to it is showing high bounce rates there may be a problem with the list itself. Check where it came from and how it was put together so you can decide if you still want to use it or if it needs amending.  I’m sure we’ve all seen human error with typed lists when the compilers have forgotten the @ in the email address.

Errors in your imported list

Sounds simple but check how the data has been imported and that for example only the email address is in the email address field.

You have an old list

If you see high bounce rates it may include stale or inactive addresses. Every mailing list can contain stale or invalid email addresses if you haven’t used it in a while. Lists with a lot of stale or invalid addresses can not only lead to high rates of bounces but also spam complaints and unsubscribes. If you are seeing high bounce rates and think your list might include stale addresses then put actions in place to reconfirm your subscribers.

 

Image from Bodya Grinovetskyi | Dreamstime Stock Photos

Scroll depth – why it’s important

Scroll Depth is a small Google Analytics plugin that lets you measure how far users are scrolling on a page. It monitors the 25%, 50%, 75%, and 100% scroll points, sending a Google Analytics event for each one.

Why’s it important?

Page Scroll Depth can be a good indicator for engagement: the further visitors scroll down a page the more content they wanted/ will have consumed and engaged with. Also knowing how far people scroll can help you determine what to do with the page and the content.

Churn rate

churn

Churn rate is the amount of customers who cut ties with your company during a given time period.

The calculation of churn can be straightforward. Take the number of customers that you lost in a period of time and divide that by the number of customers that you started with in that period of time. The resulting percentage is your churn rate.  As an example, a company that started last quarter with 100 customers and lost 3 over the course of the quarter would have a churn rate of 3%. You can also calculate churn based on the number customers lost, the value of recurring business lost, or the percent of recurring value lost.

Regardless of how you choose to represent churn, tracking your churn rate is key. It’s almost always cheaper and easier to retain customers than it is to go through the process of acquiring new ones. Monitoring churn is the first step in understanding how good you are at retaining customers and identifying what actions might result in a higher retention rate

Here’s an example to think through the impact of your churn rate today on your business over the next five years:

If you have monthly recurring revenue of £15000 and that every month you add another £2000 to that. However, you have a churn rate of 3%. If all of that persists for the next 5 years, you’ll end up generating almost £2.6 million. If you’re able to decrease your churn rate by 10%, to 2.7%, that gives you an extra £100,000 in revenue. If you’re able to reduce your churn by 30%, that’s even better. Your revenue goes up to £3 million!

Based on an article by http://www.churn-rate.com/

 

Retention rates

3d  puppet, installing the diagram. Objects over white

Do you know what you spend on gaining new customers compared to keeping the customers that you already have? How effective are you at keeping your current customers? With all of the time, resources, and money put into acquiring customers it is important to know that your efforts aren’t wasted when customers don’t remain loyal.

Your customer retention rate is a great way to measure how successfully you are maintaining customer relationships. On a more granular level, you also need to know which types of customer you are remaining loyal and at which point in the relationship a customer leaves, so that you can make the necessary adjustments.

According to a recent study by social media marketing software provider, Flowtown, they found that maintaining existing customers costs six to seven times less than acquiring new customers. A study by Bain and Company reported that increasing your customer retention rates by just five percent led to an increase in profits between 25 and 95 percent.

Calculating your customer retention rates

Step #1

The first thing you need to do to calculate your retention rate is identify the specific period of time you’re focusing on. Perhaps you’re looking at the last year or maybe the last six months.

Step #2

Next, you need to know how many customers you had at the end of that period of time. If you’re calculating a current retention rate at the end of the period during which you’d like to measure, it might be as easy as determining how many customers you currently have. This number is represented by CE in the formula.

Step #3

You also need to know how many new customers were acquired during the period of interest, so that you don’t include them as retained customers in your final retention measurement. This number is represented by CN in the formula. Now you’re ready to do your first calculation: subtract your CN number (new customers acquired during the period) from your CE number (number of customers at the end of the period).

Step #4

The final number you need to know is how many customers you had at the start of your period of interest. This number is CS in the formula. For your next calculation, you will take the solution to Step 3 (CE-CN) and divide it by how many customers you had at the start of your period (CS). This covers the first part of the equation: ((CE-CN)/CS)

Step #5

Finally, you want to turn that number into a percentage by multiplying it by 100. Your final number is your customer retention rate for your period of interest. ((CE-CN)/CS)) x 100.

Based on an article by on the socious community blog.

http://blog.socious.com/bid/70287/how-to-accurately-calculate-your-customer-or-member-retention-rate

Your top customers by Profit or Life Time Value

Sounds simple but identify your customers who drive the most profit for your business. Rank them and understand how impactful they are as individuals or as a segment for your business.

Ranking these customers from highest to lowest by Profit or Life Time Value lets you see which individuals or groups drive an outsized portion of your business results.  When you can look at a single list and see your main customers you have the power to identify the unique characteristics of this group and work hard to attract more.  Is it who they are, where they live, or what they buy?

Knowing that answer can be more valuable than just making the sale. By focusing your customer service, marketing, promotions, and sales offers, you can build the long-term value with these customers and find more existing and new customers who share the same characteristics.

Returning vs New Customers

Do you have a good balance of returning vs new customers? How well you are maintaining your customer relationships over time?  How much do new customers compared to your returning customer spend with you?

The returning vs new customer metric can help you to compare the value an average new customer brings to your business vs a returning customer over the lifetime of your relationship. It’s worth considering with this metric the costs associated of attracting new customers compared to that of existing customers.

Use this metric to monitor the split over time or see how the business generated between the two groups varies over time. It can be an early indication of longer term customers views towards your organisation and their likely purchase intentions. For a product that supports repeat customers more so than one-time buyers, this can be the difference between struggling and thriving business.

Web Conversion Rate

Web conversion rate is one of the most important indicators of whether your digital efforts are paying off. High levels of traffic to a website without completion of your key goals or calls to action is pointless, as these are a company’s route to growth.

If the conversion rate of your website is stubbornly low, two things could be wrong. First, consider what percentage of your site traffic is qualified. If it’s in the single digits, your target audience probably isn’t hearing you. Next, consider users’ online experience. If the checkout is cumbersome or your site is confusing, visitors are unlikely to convert.

Complicated forms are a common stumbling block in the user experience and can damage conversion rates. Consider giving users a guest checkout option. If visitors must register before checking out, make the process as simple as possible. If a longer form is absolutely necessary, try prepopulating data fields to minimise the hassle.

A website that lacks responsive design can also sap conversions. Most of your users are probably on mobile devices so ensure your website can adjust to small screens.

Based on an article from Deren Baker – Five Key Marketing Metrics CEOs want to see.  http://performancein.com/news/2016/01/18/five-key-marketing-metrics-ceos-want-see/

Landing page conversion rate

To fully optimise your website for conversions, it’s important to know which landing pages are performing well and which need improvement. One page may appear less often but have a higher clickthrough rate while another may generate traffic with low conversions.

Using Google Analytics, you can check your website’s keyword and landing page traffic, as well as follow user interactions from there.

A landing page is the first impression your brand makes on a new visitor, so it’s important that the format and layout be intuitive and easy to view.

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