what are metrics?
Metrics are a way of understanding the performance of a certain activity. In marketing you’ll frequently find KPIs (key performance indicators), goals and objectives being set to understand the performance of marketing campaigns.
how do metrics apply to micro businesses?
Metrics are important for a number of reasons. First, it’s best practice to put in place a way of measuring marketing activity to help you see what’s working well and what isn’t. Secondly, it’s a great way to show decision makers where to invest more time and effort and understand what the ROI (return on investment) has been for such activities.
why would I apply metrics to my business?
Being able to quantify specific marketing activities can help you make decisions about what activity to do when planning your marketing strategy and allocating budget. One of the many advantages of digital marketing is that you can see the impact that different channels have on your sales. This can be done through using Google Analytics (free) and other paid analytical suites. All the major social media sites have their own analytical suites which are also free.
how many metrics can I have?
You can choose as many metrics as you want, however, it’s probably best to start small and understand what the numbers are telling you before creating custom metrics. To choose marketing metrics you may find it useful to group them under the following:
- direct traffic (visitors who type your URL in their browser)
- referral traffic (visitors who arrive on your website through clicking your URL on another channel)
- organic traffic (visitors who arrive to your website by clicking on a search engine result)
- campaign traffic (visitors who arrive on your website by clicking on a custom tagged link)
- attributed conversions (visitors who have converted on your website but have visited from a variety of channels)
email marketing metrics
- new subscribers (number of new people signing up to your newsletter - list growth)
- open and click through rates (% of people who open and click through from your email campaigns)
- response rate (% of people who reply from your email campaigns)
social marketing metrics
- social interactions (number of times your brand has been mentioned on social media channels)
- vanity social metrics (number of retweets, shares, likes your brand has had on social media)
- engagement rate (number of posts on social media / number of interactions)
- social referrals (number of people who visit your website from social media channels)
- social conversions (number of people who convert on your website from social media channels)
influencer marketing metrics
- cost per conversation (number of hours spent researching influencers / number of influencer conversations)
- reach ratio (number of posts by influencer / number of responses by audience)
paid marketing metrics
- click through rate (% of people who click a paid advert and land on your landing page)
- quality score (relevance of keywords used in ad copy in relation to target segments according to Google)
- conversion rate (% of people who click a paid advert and convert)
- cost per click (the cost paid every time someone clicks your ad)
search engine optimisation metrics
- inbound links (number of links that point to your website)
- keywords rankings (position of keywords your website ranks for)
- behavioural metrics (average time on website, average pageviews and bounce rate)
- goal completions (custom built goals that indicate actions taken by website visitors)
- returning visitors (number of people who are returning to your website)
- mobile traffic (number of visitors who are browsing on a mobile device)
how do I choose metrics?
Knowing which metrics to choose is the difficult part. Before choosing any metrics, you will have to establish what marketing activity you will be undertaking and then match the metrics to suit. It’s also important to consider how the metrics you choose will link to your overall business objectives.
how do I find out more about metrics?
There are many resources online about marketing metrics, however, a lot of the time it depends on what you’re measuring and not all businesses are measuring the same thing! Marketing automation platforms such as Hubspot and Marketo are a great resource for learning more about marketing metrics and Google Analytics is a fantastic tool to measure what your website visitors are up to!
If you want to know about what metrics you should use or any questions on the above, tweet us at @bmicro_co and we’ll give you our recommendations.