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Measure for Success

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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Website Performance Metrics – benchmark against your competitor

You can track the performance of competitor websites by gathering data from sites such as SEMRush, Pingdom, Similarweb, and Alexa. Some important metrics to consider include:

  • Website visits: The average number of visitors per month can easily size up how popular you and your competitors are.
  • Bounce rate and site speed: Correlate these two metrics. That’s how you can determine whether you need to make changes to your own website.
  • Geographic sources of traffic: Look at what percentage of visitors comes from what regions. That’s critical if your company plans to expand beyond its current geographical presence. It will also allow you to spot global opportunities by finding gaps in distribution when looking at all competitors.
  • Website traffic by channel: See where your competitors choose to spend their time and money. For example, a company that has a higher percentage of visitors from email probably has a large prospect database. If you look at their website, you can examine how they collect data for their email marketing programs. Are they getting website visitors to sign up for newsletters or special offers? If not, they may be purchasing prospect data from a data provider. You can adjust your own strategy to ramp up marketing campaigns in areas where your competitors are not actively engaging prospects, or to increase spending in areas where they are outperforming you.Based on an article from Anna Kayfitz Read the full article at: http://www.marketingprofs.com/articles/2016/29418/how-to-benchmark-your-marketing-performance-against-your-competitions#ixzz43XZWUORv

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Net Promoter Score

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Net Promoter or Net Promoter Score (NPS) is a customer loyalty metric. It can be used to gauge the loyalty of a firm’s customer relationships and serve as an alternative to traditional customer satisfaction research.

Many senior managers care about the Net Promoter Score because they want to guage the loyalty of their customers. What’s more, there’s a strong correlation between a high Net Promoter Score and company growth. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

Surveys provide a great tool for tracking the Net Promoter Score: You can ask respondents how likely they are to recommend a company to a friend or colleague, then ask them to score their satisfaction with your company between zero and 10.

To calculate your NPS work out the percentage of responses that scored your company between seven and 10, then zero and six. Subtract the zero-to-six percentage from the seven-to-10 percentage, and you have your Net Promoter Score.

You can also use the same survey to ask customers how you can improve. Your senior managers will be impressed with the insights you can provide with the data gathered by the Net Promoter Score.

Presenting metrics to senior managers

Senior Managers don’t want numbers thrown in their faces, so marketers need to use data to tell a story. An endless stream of data, numbers and metrics are tough to digest and carries less meaning than visual methods of presenting data.

When telling your story, make clear, data-grounded recommendations. For example you may say “You’ve noticed that your organisation spends 20% of the marketing budget on social media, but you’re not seeing great results. I recommend cutting back and allocating money elsewhere.”

Efficient marketing requires data, but senior managers aren’t concerned with every scrap of it. They want a clear view of how your customers behave and how marketing projects impact revenue. To keep your senior managers in the loop without wasting his time, present them with these metrics.

Measure what can be measured, and make measurable what cannot be measured.  Galileo Galilei

 

Key metric – Incremental sales

Incremental Sales measures the contribution of your marketing efforts to increasing sales revenue.

This KPI emphasizes the close relationship between sales and marketing, and how that relationship benefits the organisation. Marketing attracts qualified leads, and sales converts those leads into paying customers (which, hopefully, become brand advocates to further fuel marketing efforts).

The incremental sales KPI is one of the most consistent ways to measure the marketing ROI as it demonstrates new revenue that can be directly attributed to a marketing campaign.

The problem for marketing teams is that campaigns may generate new leads or sales indirectly. For example, a banner campaign with a large volume of impressions may encourage people to complete what is called a “view through conversion.” This means that a visitor may see an ad, visit the website in a separate browser tab or window, and then complete a goal without actually clicking on the banner ad. The result is the same, but the path and credit for the completion are very different.

Key metric – Retention rate

Retention rate is the ratio of the number of retained customers to the number at risk.

In contractual situations, it makes sense to talk about the number of customers currently under contract and the percentage retained when the contract period runs out.” This term should not be confused with growth (decline) in customer counts.

Retention refers only to existing customers in contractual situations. “In non-contractual situations (such as catalog sales), it makes less sense to talk about the current number of customers, but instead to count the number of customers of a specified recency.

Key metric – Abandonment rate

Abandonment rate is a term associated with the use of virtual shopping carts. Also known as “shopping cart abandonment”. Although shoppers in brick and mortar stores rarely abandon their carts, abandonment of virtual shopping carts is quite common.

Marketers can count how many of the shopping carts used in a specified period result in completed sales versus how many are abandoned. The abandonment rate is the ratio of the number of abandoned shopping carts to the number of initiated transactions or to the number of completed transactions.

Abandonment rate as a marketing metric helps marketers to understand website user behaviour.  Specifically, abandonment rate is defined as “the percentage of shopping carts that are abandoned” prior to the completion of the purchase.

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