Back To CourseAMA PCM Exam Study Guide - Professional Certified Marketer
19 chapters | 103 lessons
Kyle is a journalist and marketer that has taught writing to a number of different children and adults after graduating from college with a degree in Journalism. He has a passion for not just the written word, but for finding the universal truths of the world.
Marketing metrics are one type of business metric. Business Metrics are defined as quantifiable measures that are utilized to follow and evaluate any given process within an organization. Various business metrics can be employed depending on the target audience. These include customers, investors, and even employees. Business metrics should be related to an organization's (or specific department's) goals and/or benchmarks.
Performance metrics measure how effective various areas of a business are at executing their specific mission and purpose. Marketing metrics obviously track marketing efficiency, but in today's modern society social media metrics have been added to the mix. Social media marketing has become a very important, if not necessary, marketing tool for today's businesses. However, there are other important metrics involved with the marketing department of most successful businesses.
Business metrics are sometimes referred to as key performance indicators. The major difference is that Key Performance Indicators (KPIs) focus on specific areas of performance. For example, ''a metric may monitor website traffic compared to a goal, whereas a KPI would monitor how website traffic contributed to incremental sales.'' ('What are…,' n.d.) Metrics and KPIs are best utilized when they are easy to comprehend, effortlessly replicated, and provide impactful information.
Marketing Metrics are quantifiable measures that are utilized by marketing departments to determine the overall performance and efficiency of an organization's marketing plan. Digital marketing KPIs are an effective way to analyze the values associated with marketing metrics. Selecting the most effective metrics and KPIs is critical for long-term success. Some key marketing metrics for today's thriving business are ''web traffic sources, incremental sales, social sentiment, end action rate, SEO keyword ranking, and SEO traffic.'' ('What are…,' n.d.)
Web Traffic Sources - These metrics determine what sources are leading visitors to an organization's website and the number of visitors that are coming from each source. The three most common forms of web traffic sources are search, direct, and referral. Search traffic is brought in through the use of a search engine like Google or Bing. Direct traffic is brought in by typing the specific web page's URL. Referral traffic is brought in when a visitor finds your page from a URL on another website. A digital marketing dashboard is the most effective way to measure web traffic metrics and KPIs.
Incremental Sales - This metric actually examines how effective an organization's marketing campaigns are in regards to generating and increasing revenue. Incremental sales is one metric that is utilized across departments within an organization. Both marketing and sales departments will utilize this metric. This is particularly important for the long-term success of any organization. These metrics should be compared to the overall business goals to determine how effectively a marketing department is generating quality leads. This is another metric that is ideal for use with a digital marketing dashboard.
Social Sentiment - This metric measures the perception and equity of a brand. Social sentiment can be set forth through online campaigns with blogs and forums or even other types of press releases. Just as with the metrics listed above, social sentiment can be tracked using a digital marketing dashboard.
End Action Rate - This metric measures the efficacy of marketing strategies by observing the last actions taken by visitors to your website. This last action is referred to as an 'end action.' Other actions that are important to this metric are leads (prospective customers) and wins (actual new customers). Any marketing campaign that brings about a significant number of leads and wins is a major indicator of success and this campaign should be considered for long-term profitability. A reduction in bounce rates (those who leave your site quickly after only viewing one page) is another indicator of marketing success. Once again, this metric is best analyzed through a digital marketing dashboard.
SEO Keyword Ranking - This KPI measures specific rankings for keywords that drive traffic to a website. It will also analyze any variations in these rankings over time. This enables organizations to adjust and change keywords to better suit the climate of their target market. Monitoring this metric is critical to the long-term success of today's organization. SEO (Search Engine Optimization) is quickly becoming a benchmark in modern marketing. If a company is not able to compete online with the use of efficient SEO strategies, they very well may suffer and end up lost amongst the competition. This metric is best measured using a SEO dashboard, which can be through a digital marketing dashboard.
SEO Traffic - This KPI measures the number of site visitors a company gains through both organic and paid search traffic. Organic search traffic is measured by visits that are the result of a search engine query. Great SEO will rank your website high on the list of search results that are most relevant to a particular query. Paid search traffic is measured by visits that are the result of paid advertisements. Proper metrics in SEO traffic will also examine the website's traffic rankings compared to other websites. As with keyword ranking, SEO traffic will be an ever-changing KPI that will need to be closely monitored and analyzed by a company's SEO/marketing team. This metric is best tracked using a web analytics dashboard.
A Digital Marketing Dashboard or SEO dashboard tracks various metrics for marketing departments. This dashboard can go beyond the SEO and other online metrics mentioned above. It can track various marketing metrics from lead generation to advertising. These dashboards most often focus on statistics regarding the generation of new leads as compared to the goals of the organization. This is often measured in short-term goals, but this information can be analyzed to prepare for long-term business strategies.
There are other marketing metrics and KPIs that are not solely focused on social media or online marketing. These metrics remain important to the long-term success of any organization. Growth is the key to any company's long-term success. Closely examining specific marketing metrics will help to determine the key areas of growth that are generating increased revenue for a business. Different metrics will be more important for different organizations with different markets. It will be up to the marketing department to carefully analyze various metrics to determine which ones will directly affect profitability.
1. Total Community Membership - This metric examines the combined efforts of a marketing strategy. It is used to analyze SEO, online marketing, e-mail subscribers, blog followers, referrals, and even word of mouth. If an organization has more exposure, then they should be generating more potential leads. One specific KPI that marketers use with this metric is the total number of followers they have on social media.
2. Average Total Revenue per Customer - This is determined by the organization's total revenue divided by the total number of customers. This is an important metric that will help marketing departments determine effective methods for attracting more customers or increase the average dollar amount of each sale.
3. Percentage of Leads Converted - As opposed to examining the sheer number of leads compared to sales, this is a worthy metric to consider regarding how many of these leads actually result in a sale.
4. Percentage of Business Gained by Referral - This is a very effective metric in determining the overall health of a business as well as the projected long-term health. This is a great basis for analyzing the effectiveness of various campaigns.
5. Percentage of Repeat Business - This metric is ideal for determining future marketing campaigns. Will there be more revenue generated from new leads or from current customers? It is also a great determinant of customer satisfaction for the right business. However, certain specific businesses depend on new customers rather than repeat business. For example, a product that will last several decades should have a stronger marketing focus on new leads than on repeat buyers.
6. Cost to Acquire New Customers - This marketing metric is critical when setting budget amounts, particularly in regards to marketing campaigns. It will also be beneficial to the long-term profitability of a company to analyze methods for lowering the cost of acquiring new customers.
7. Percentage of Customers who will Refer - This measure is obtained simply by asking customers how likely they are to refer a business to others. This metric is becoming more and more popular among marketing teams today. Referrals are one of the strongest tools for marketing a business. Customers will help build the business brand just as much as the internal marketing department.
Marketing metrics are specific types of business metrics that inform and guide marketing departments. KPIs are a type of metric that examine specific areas of performance in an organization. There are various marketing metrics that are critical to the long-term success of today's business. Online marketing and SEO metrics are two of the most important. There are also more traditional metrics, such a business gained by referral, that will be critical to successful marketing strategies in the long-term.
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Back To CourseAMA PCM Exam Study Guide - Professional Certified Marketer
19 chapters | 103 lessons