Unlock Your Marketing Magic: 4 Simple Metrics to Reveal Your True ROI

Measuring your marketing success is crucial for small business owners. In this episode of BrandKramp™ , Aileen Casey covers four important metrics: conversion rate, engagement rate, click-through rate, and customer acquisition cost. 

She discusses why each metric matters and what to look for when analyzing them. Aileen also provides tips on how to access and use analytics platforms like Google Analytics, Meta, and LinkedIn. 

Overall, this episode provides easy, actionable steps to measure marketing success and make every marketing dollar count.

Thanks for listening. To learn more about BrandKramp™ and for additional resources visit us at BrandKramp.com

Chapters

• 0:00 Measuring Marketing Success: Four Key Metrics
• 1:01 Understanding Conversion Rate: Turning Leads into Customers
• 2:00 The Importance of Engagement Rate: Valuable Content
• 2:59 Analyzing Click-Through Rate: Resonating with Your Audience
• 3:57 Managing Customer Acquisition Cost: Optimizing Spending
• 4:26 Accessing and Analyzing Metrics: Analytics Platforms

Transcript

Aileen Casey (00:01)

Measuring your marketing success is where the magic happens. It's how you find out if your hard -earned dollars are really making an impact. But let's face it, most small business owners are way too busy to sit down and figure out their marketing ROI. 

 In the next few BrandKramp™ podcasts, we're going to break down how to set up and measure your marketing efforts into bite -sized doable steps. So, whether you're looking to boost your brand, get more conversions, or increase sales, we'll show you how to measure your success and make every marketing dollar count. 

 Ready? Here we go. 

 In today's episode of BrandKramp™, we'll cover four of the most important metrics you or your team should be looking at to measure your marketing success. Number one, your conversion rate. That's the percent of people who complete a desired action, like click a link, fill out a form, or purchase from your site. Why it matters. It measures how effective your marketing efforts are in terms of turning leads into customers. And this is probably your most important metric when it comes to understanding and learning from your marketing efforts.

Here are some things to look out for when you're thinking about your conversion rate. Look at your overall trends. Is your conversion rate improving? Is it staying the same or declining? Consistent improvement is a sign that your marketing strategies are on the right track. Inconsistent means something must change, like your offer, headline, creative, et cetera. You need to look at your channel performance. Compare how different channels, like social media, email, paid ads, et cetera, are converting. Some channels may be better at driving sales or leads than others. move your resources to the ones that work the best. 

 Bounce rate. If you have a high bounce rate, meaning people leaving after one page visit on your website, it could be affecting conversions, meaning you might need to adjust your landing pages or messaging on your website and landing pages. 

 And finally, industry benchmarking. Compare your conversion rates to industry standards to see how you stack up. Platforms like Meta allow you to choose companies to benchmark against, which is really, really convenient. 

 Number two, your engagement rate. That's the level of interaction, likes, shares, comments, and saves with your content on digital platforms and other traditional marketing. Why it matters. High engagement signals that your audience finds your content valuable or interesting and reacts to it. What to look for. How many people liked your post or commented? How many people opened your email? How many people clicked that link or called you because they saw your ad in the paper? What you do is you take the winners and you run with them.

 Number three, your click -through rate. This metrics is specifically for online marketing efforts. The percentage of people who click on your ad, email link, or call to action after seeing it. Why it matters. A high click -through rate indicates that your content is resonating with your audience and compelling them to take action, which is exactly what you want. What to look for. High click -through rates indicate your messaging is working. Low click -through rate will indicate your content is not resonating with your audience.

 or is not the right format for the platform. And a really good example is if any of you do LinkedIn advertising, your click -through rates for a carousel ad are going to be completely different than a text ad. Text ads are placed in the side rail. They're kind of buried, whereas the carousel ads are right in the feed, and you have up to 10 images in a carousel. A good click -through rate is typically in the single digits, believe it or not, 5 % or under. If you get anything above that, It's a win -a -win -a chicken dinner, and then you run with it. 

 Your customer acquisition cost is the fourth thing you should be looking at. That measures the cost of acquiring a new customer through your marketing efforts. This is really a more complicated metrics than we have time for here, but you can use it as a quick gauge for your ROI. Why it matters. Understanding your customer acquisition costs helps you manage budgets effectively and optimize your spending across channels. And there's a couple of ways to measure this.

It can be your total marketing costs divided by your new customers. I recommend, though, breaking your customer acquisition costs down to the campaign and or channel level because there's plenty of opportunity in organic growth and it's cheaper. A quick note on reporting. So now that you understand the key metrics, how do you access them? Most platforms have analytics available that are user friendly. Use Google Analytics for your website traffic. Meta has a business suite for Facebook and Instagram.

 And LinkedIn has pretty good reporting too, especially if you're a paid advertiser. Email platforms also have robust reports too, so don't forget about those if you're doing email marketing. So, there you have it. Some quick ways to measure your marketing investment. You can find a download with the tips we covered on the BK Publications page on the BrandKramp Cramp website, or shoot me an email at Aileen@AileenDesigns.com and I'll send it to you. 

Coming up!  In the next episode of BrandKramp™ we'll cover the importance of your creative and why you should be in a constant cycle of testing and tweaking. 

 Till next time, Aileen.