digital marketing metrics that matter

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Digital Marketing Metrics that Matter

Post on 17-Oct-2014

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Organizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC, their formulas and the chain of events that builds value and efficacy in digital marketing.

TRANSCRIPT

Page 1: Digital Marketing Metrics That Matter

Digital Marketing Metrics that Matter

Page 2: Digital Marketing Metrics That Matter

{ value }

{ efficacy }

{ spend }

REVENUE METRICSWhen marketing ROI increases,

marketing’s portion of CAC (MCAC) is reduced—improving marketing efficacy

and creating more revenuefrom less investment.

POST-CLICK METRICSWhen CVR increases,CPL decreases and

ROI increases.

PRE-CLICK METRICSWhen CPC decreases and

CTR increases, you get more prospects

in your funnel.

Clicks / Impressions * 100

Total Cost / Number of Leads

CPCCost Per Click

CPLCost Per Lead

Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer

CTRClick Through Rate

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Converted Visitors / Total Visitors * 100CVRConversion Rate

Digital Marketing Metrics Pyramid

Page 3: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

The PyramidShows the RelationshipBetween traditionally ‘low-level’ metrics and business-changing marketing metrics.

Page 4: Digital Marketing Metrics That Matter

{ value }

{ efficacy }

{ spend }

REVENUE METRICSWhen marketing ROI increases,

marketing’s portion of CAC (MCAC) is reduced—improving marketing efficacy

and creating more revenuefrom less investment.

POST-CLICK METRICSWhen CVR increases,CPL decreases and

ROI increases.

PRE-CLICK METRICSWhen CPC decreases and

CTR increases, you get more prospects

in your funnel.

meet.ioninteractive.com/CAC

Clicks / Impressions * 100

Total Cost / Number of Leads

CPCCost Per Click

CPLCost Per Lead

Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer

CTRClick Through Rate

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Converted Visitors / Total Visitors * 100CVRConversion Rate

Digital Marketing Metrics PyramidOrganizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC,their formulas and the chain of events that builds value and efficacy in digital marketing.

Page 5: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

Revenue MetricsCAC becomes a strategic indicator when used in ratios to judge the scalability of a business.Lower CAC is better. Way better.

CACCost to Acquire a Customer

Page 6: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

Holy Grail 101:Use less cents to make more bucks.

Page 7: Digital Marketing Metrics That Matter

{ value }

{ efficacy }REVENUE METRICS

When marketing ROI increases,marketing’s portion of CAC (MCAC)

is reduced—improving marketing efficacyand creating more revenue

from less investment.

Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Page 8: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

ROI is just beneath CACIf you can increase marketing return on investment by getting more business out of equal or lesser spend, you will reduce CAC.Higher ROI is better.

ROIReturn on Investment

Page 9: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

Post-Click MetricsDrive Value.

Page 10: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

Post-Click MetricsDrive the R in ROI.

ROIReturn on Investment

Page 11: Digital Marketing Metrics That Matter

{ value }

POST-CLICK METRICSWhen CVR increases,CPL decreases and

ROI increases.

Total Cost / Number of LeadsCPLCost Per Lead

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Converted Visitors / Total Visitors * 100CVRConversion Rate

Page 12: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

CVR feeds ROI

CVRConversion Rate

If you can increase your conversion rate—the percentage of people who take marketing’s desired action—you will increase your marketing return on investment.Higher CVR is directly related to higher ROI.

Page 13: Digital Marketing Metrics That Matter

{ value }

POST-CLICK METRICSWhen CVR increases,CPL decreases and

ROI increases.

Total Cost / Number of LeadsCPLCost Per Lead

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Converted Visitors / Total Visitors * 100CVRConversion Rate

Page 14: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

CPL contributes value if…you can reduce CPL by increasing CVR—improving conversion quality while reducing spend.Lower CPL is better—unless quality suffers.

CPLCost Per Lead

Page 15: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

CPL naturally goes downwhen—all things being equal—conversion rate goes up.Lower CPL is the result of higher CVR.

CPLCost Per Lead

Page 16: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

{ spend }PRE-CLICK METRICSWhen CPC decreases and

CTR increases, you get more prospects

in your funnel.

Clicks / Impressions * 100CPCCost Per Click

CPLCost Per Lead

CTRClick Through Rate

CVRConversion Rate

Spend-focused marketingdelivers spend-focused results.

Page 17: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

CPC & CTR improvewhen—all things being equal—the post-click experience is amazing.The post-click experience drives value—in ROI as well as spend.

CTRClick Through Rate

CPCCost Per Click

Page 18: Digital Marketing Metrics That Matter

{ value }

POST-CLICK METRICSWhen CVR increases,CPL decreases and

ROI increases.

Total Cost / Number of LeadsCPLCost Per Lead

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Converted Visitors / Total Visitors * 100CVRConversion Rate

Page 19: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

Post-Click Focused Marketing Drives ROI-Focused Results.

Page 20: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

What CMO doesn’t want more revenue from less investment?

Page 21: Digital Marketing Metrics That Matter

© i-on interactive, inc. All rights reserved • www.ioninteractive.com

Morereturnfrom less investment.

Page 22: Digital Marketing Metrics That Matter

{ value }

{ efficacy }

{ spend }

REVENUE METRICSWhen marketing ROI increases,

marketing’s portion of CAC (MCAC) is reduced—improving marketing efficacy

and creating more revenuefrom less investment.

POST-CLICK METRICSWhen CVR increases,CPL decreases and

ROI increases.

PRE-CLICK METRICSWhen CPC decreases and

CTR increases, you get more prospects

in your funnel.

meet.ioninteractive.com/CAC

Clicks / Impressions * 100

Total Cost / Number of Leads

CPCCost Per Click

CPLCost Per Lead

Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer

CTRClick Through Rate

( Gain - Cost ) / Cost * 100 ROIReturn on Investment

Converted Visitors / Total Visitors * 100CVRConversion Rate

Digital Marketing Metrics PyramidOrganizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC,their formulas and the chain of events that builds value and efficacy in digital marketing.