Performance Marketing Campaigns can contribute towards the exponential growth of your organization. But to ensure the achievement of such goals it is important that results of such campaigns are timely monitored and changes are introduced accordingly.
Whether you are planning to execute a marketing campaign you must be aware of the important metrics used. Such metrics would help you to understand both the direct and indirect impact of the marketing campaign on business.
Key Metrics Used
Leads
The best way to evaluate a performance marketing campaign is to analyze the leads generated. It is simply referred to an individual/organization who has interacted with you through your campaign. Also, a qualified lead can become your potential customer if communicated properly. Hence, the effectiveness of a performance marketing campaign can be justified by evaluating the lead generated.
Further, the leads can be categorized into different categories for evaluation. Such can be based on the user nature (new or existing user), region, source, or device type. It can help to identify the most appropriate campaign type that can help in improved reach.
CPL(Cost Per Lead)
Getting quality leads through performance marketing campaigns is important. But along with such it is also important to evaluate the cost at which the leads have been generated. As the ultimate goal of a campaign is to generate the maximum possible leads so that the marketing costs can be compensated.
It is calculated by dividing the total number of leads by the total spend. Lower CPL defines the effectiveness of the performance marketing campaign.
Lead-to-Customer Ratio
The leads generated through a marketing campaign only denote the number of potential customers who have interacted with you through the campaign. But along with such it is also important to evaluate the conversion of such leads to a potential customer. It helps a performance marketer to understand any of the challenges within the sales journey.
It can also reflect upon the return on ad spending. Based on the lead-to-customer ratio, the marketer can also get to know about the customer acquisition cost. Accordingly, the decision to introduce changes in performance marketing strategy can be ensured.
Customer Retention Rate
Adopting performance marketing campaigns helps to ensure improved customer engagement and brand awareness. Once a lead is generated and turns out to be a potential customer, their retention is to be evaluated. Such retention defines upon the reorders/revisits by the customers converted through such marketing campaigns. A low customer retention rate can reflect upon the potential gaps in product performance or customer satisfaction.
Based on the customer retention rate, product innovations can be introduced. Also, such can be done based on the expectation of the new as well as the existing customer base of the brand.
Bounce Rate
It is defined as the percentage of users who leaves the page immediately after they land on the page. Having a higher bounce rate can be negative for your marketing campaign. A user leaving your page too soon can either be due to an intended click, slow page loading speed, or irrelevant content. Such can have a major impact on your website ranking and its organic search results.
If your website has a high bounce rate, then you must undertake approaches to improve your website. Such may include improving your website design and its loading speed. Also, efforts can be made to optimize it to adapt to different device needs.
Scroll Depth
It evaluates customers’ experience while using your website/product page. Scroll Depth metrics can help the marketer to identify the page depth that users have visited. Having a low scroll depth can either be positive or negative. However, it is majorly dependent on the user’s behavior.
For instance; post landing on the website, the user may have found the product easily without too much scrolling and has made the purchase. On the other hand, if no purchase has been made, then low scroll depth can reflect upon the unsatisfactory experience.
Brand Awareness
It is not directly linked to the performance marketing campaign introduced by the management. But is affected by the results of the campaign. A marketing campaign aims to establish brand positioning and awareness in the marketplace. Hence, a positive shift in brand awareness can reflect upon the success of the implemented performance marketing campaign.
Wrapping Up
Performance marketers can make better use of the defined metrics to evaluate the success or effectiveness of marketing campaigns. Also, based on the results, they can even guide the management regarding the potential changes that they should introduce in their product/service. Hence, it is recommended that you must consult with an experienced performance marketing agency to ensure the development of creative marketing campaigns.
Verve Online Marketing is a one-stop solution for all your digital marketing needs. Our team of experienced performance marketers can plan a creative marketing campaign for your business. Also, we provide branding and web/app development services that can help in improving your brand positioning in the competitive marketplace.
