Digital Marketing Metrics You Should Pay Attention To

In digital marketing metrics, more isn’t actually better; a smarter approach would be to narrow it down to the ones that can help your business. We need this measurable metrics to analyze the performance of the brand and as evidence of success or failure of the company. And it is of paramount importance now more than ever to measure the success of your digital marketing campaign. And calculating these metrics is no biggie because there are several digital marketing tools available in the market which has some means or the other of measuring success and this is possible because of the various metrics that every business owner has on hand.

But there is a drawback here, data is easily available and accessible too; but it can be a daunting task for marketers to choose the right kind of metric from the tons of data to monitor to measure success. And most marketers end up focusing on the wrong kind of metrics and lose time analysing metrics that really doesn’t matter to their business or pose any significance in what matters most; which is earning revenues. For example marketers are obsessed with “vanity” metrics; these constitute of Facebook “likes”, YouTube “views” or Instagram “likes” and so on; these metrics are merely to satisfy your vanity and cannot be effectively monetized or translated into revenues and unless you do that, these metrics don’t really matter and no matter the number of Facebook likes you get you will not be earning anything out of that! And asymmetric doesn’t really matter or have an impact on the bottom line of your business you shouldn’t be wasting  your company’s time and resources on it. The smart thing to do here is learning how to identify which of these metrics will be influential in helping your business grow and generate more revenue.

The world of digital marketing metrics is a very confused market which is why most people tend to adopt the “more is better” mindset hoping that if they measure everything they might at least have one metric that deems their campaign as a success. Seems like a shotgun approach though, doesn’t it? A shotgun approach might not exactly hit the target you were hoping for. So the right campaign metric requires a coordinated and concentrated effort  from all the stakeholders involved and therefore it comes with great benefits.

Here they need trick to use when adopting a metric, ask yourself these 3 questions:

  1. Do you understand what it means clearly? Do you know if a specific event or the behaviour of a consumer is being counted? You know it shouldn’t be on the left if you don’t know the answer or you can’t explain it.
  2. Do you trust the number number you’ve got, is it an industry standard?
  3. Can you prove that it is related to concrete objectives of business outcomes?

These questions might seem banal, but they do make a world of difference when narrowing down on metrics.

We have listed down below a few metrics that we believe are really important for any digital marketing campaign.

Traffic Metrics

Traffic metrics are very important for digital marketing techniques like SEO and Per-Click (PPC), and are monitored and measured during the generation of traffic.

Overall Site Traffic

To know the success of a particular digital marketing technique initiated you’ll have to measure the significant changes in flow of traffic to your site to gain insight into its efficacy. You shouldn’t just focus or rely on page views or the number of hits your website has got while measuring site traffic, you also need to keep an eye on how many unique visitors your website got per week or per month. Your chances of getting potential customers are greater if your site has more unique visitors.

Sources of Traffic

Keywords are an important part of any digital marketing campaign, in fact, most digital marketing campaign start off with keywords. To gain an insight into to what keywords or keyword phrases you should focus more on in your digital marketing campaigns, you should know where the traffic to your site comes from and which particular sets of keywords brought them there. Though various studies indicate that search engines are the primary source of website traffic, you can also weigh in on other sources of traffic that may prove to be of value to your business.  

Mobile Traffic

More and more people across the globe access the internet through their smartphones and other internet-capable mobile devices these days proving that mobile internet is one strong digital marketing arena which cannot be ignored. It can open new doors for greater and more diverse revenue sources and deserves your complete attention because this metric can also provide an insight into how can be structured and planned effectively  by the business owners  to show great results like better engagement with both mobile and non-mobile website visitors.

Click Through Rate (CTR)

Pay-Per-Click (PPC) is a practical source for targeted traffic. To measure it effectively you need to figure out the number of clicks your PPC ads receive based on the total number of impressions. An “impression” is made each time your ad is viewed and you can measure how many people actually clicked on your Ads by figuring out the Click Through Rates (CTR). Your Quality Scores will be good as long as your CTR is high; Search Engine Marketing platforms like Google Adwords allow you to lower your PPC costs by giving you pricing discounts.

Cost Per Click (CPC)

The amount you have to pay the search marketing platform for each time an internet user clicks on your PPC Ad is what Cost Per Click (CPC) defines. The popularity of your chosen keyword or keyword phrases, your Quality Score as influenced by Click Through Rates (CTR), and the standard prices search engines initially set are all factors which weigh in on this value and cause it to fluctuate. The CPC budget for keywords, keyword phrases and categories can be set individually or together.

Conversion Metrics

The main purpose for your digital marketing campaign is to convert website traffic into business leads or outright sales. Keep this goal at the heart of your digital marketing efforts, and decide on which of these particular metrics listed below are important for your business during conversion.

Conversion Rate (CVR)

To be able to define your digital marketing success, you need to have a measure of the number of website visitors who actually get converted into leads or sale, which is what makes this such a valuable and tangible metric. To get great insight as to what particular aspects in your digital marketing campaign will deliver the best results, conversion rates need to be monitored; whatever your goal is, be it gathering important information about your website visitors and potential clientele, or convert site visits into sales.

Cost Per Lead (CPL)

How well your website and content can convert website traffic into leads or paying customers at the least possible cost determines the success of your digital marketing campaign. Cost Per Lead (CPL) is a metric that provides insights on how profitable their campaign is to the marketer, it defines the lead conversion ratio of a particular campaign and the resultant cost.

Bounce Rate            

It is a known fact that not every visitor to your website can be converted into leads or sales, or will stay longer on your website, immersed in the content on your website. Some of these site visitors leave immediately or “bounce” as fast as they appeared– if the content is irrelevant to them. If you have an idea or a number for the bounce rates, it can provide you insights on improving or optimizing your content to appeal to them.

Average Page Views per Visit

Another really important component in your digital marketing campaign that should take precedence over others is to drive good traffic to your website and enticing them to stay longer on your web pages and assimilate your content. The chances for healthy engagement with website visitors increases with more page views generated from each visit and eventually, they’re influenced to get converted into leads or paying customers.

Average Cost per Page View

If you know the average cost per page view and the amount of revenue you can generate from a particular page, you can control the amount invested into a paid digital marketing channel like PPC. The revenue you can generate from the page should be significantly higher than the cost per page view in order to gain profit from your campaigns.

Average Time on Site

Based on how long your targeted audience spends on your website during each visit to your site you’ll have the measure of how well you are engaging with your targeted website visitors. This can help you gauge the relevancy of your content and better it to drive results from site visitors, gaining their valuable trust, and eventually enhance these levels of trust into finally enticing them to convert.

Rate of Return Visitors

The popularity of your website is not only defined by the amount of traffic generated by your site, but also by the number of visitors who come back often to read more of your content or to do business with your company. You can improve your content to entice site visitors who haven’t yet converted as leads or paying customers from the insights gained from knowing your Rate of Return Visitors.

Revenue Metrics

Ultimately, revenue metrics are what will indicate the success of your digital marketing properly. With the help of revenue metrics, you can decide to make adjustments to improve your content for better engagement, higher conversion, and bigger revenues if a particular campaign isn’t very profitable.

Return On Investment (ROI)

The amount of website traffic that eventually convert into new, paying customers will help you in measuring the Return on Investment (ROI) of your digital marketing efforts. You can also identify that area in your digital marketing campaign which is driving sales and revenue, and which areas should be given more room for improvement with the help of this metrics. ROI is one metric that every marketer worth his salt will keep a close eye on.

Cost to Acquire a Customer (CAC)

Also known as the Cost of Acquiring Customers (CAC), Customer Acquisition Cost (CAC) or simply Cost of Acquisition (COA) is the total number of sales and marketing money you’ve spent on an average to acquire each new customer. The number of new paying customers gained for a given time period gives you a measure of ROI. On the other hand, you can calculate the CAC by dividing the total of your marketing, sales and advertising costs (this includes all campaigns, salaries, agency fees, incentives, etc.)  for a particular time period by the number of new, paying customers acquired during that same period; the number you get as a result is the amount you have spent on getting each new customer. If you’re confused, follow this formula below:  


The calculations might not be ideal, but CAC can give you a measure of how effective and successful your digital marketing campaigns can be. Keeping your CAC lower is better for your business.


Retention Rate and Attrition Rate

Customer attrition rates (also known as cancellation rate or churn rate), according to the Canadian Marketing Association’s reports say that it can be anywhere between 2% and 40% per year. If you can reduce attrition rate by even 1%, it can make a huge difference in the amount you’ll spend on CAC and you’ll need to save on CAC because it is 4-5 times more expensive than customer retention.

So taking that into consideration, a way to calculate retention and attrition rates will be an invaluable asset. Also you’ll need to use the attrition rate is a necessary variable in some of the probable equations to calculate the Lifetime Value (LTV) of customers or Customer Lifetime Value (CLV).


How to calculate the attrition rate – the number of customers at the beginning of a given period should be added with the number of customers acquired during that period; then from that number, subtract the number of customers at the end of the period; finally, divide the result by the number of customers at the beginning of the period.

Quite confusing, yes; so we have a visual representation of the formula or equation:

Again, it is better for you to have a lower attrition rate.


The retention rate, like the attrition rate, is a necessary variable to be included in equations to calculate Lifetime Value. The retention rate is simply 1 minus the attrition rate. So visually that is,

1 – Attrition Rate = Retention Rate

Lifetime Value (LTV) or Customer Lifetime Value (CLV)

The return you get from a customer over the course of their relationship with your company is the Lifetime Value (LTV) or Customer Lifetime Value (CLV) of that customer. For a company that receives recurring payment from their customers or who get repeat customers, this metric is particularly useful.


There are several different ways to calculate the LTV or CLV of your customers. The simplest method to calculate is by multiplying the average amount that customers spend per transaction with the number of repeat sales and with the average time of retention (the average span of relationship with the customer, don’t confuse this with the retention rate).


(Average order value) X (Number of repeat sales) X (Average retention time) = LTV (or CLV)


For example- if on an average, your customers spend Rs.600/- per order and place that order once a month, and the average span of relationship with the customer is 2 years, then: (Rs.600)(12 months)(2 years) = Rs. 14, 400/- is your LTV or CLV.


There are other, more complex methods of calculating LTV taking into account several different variables. It can help you determine things like profitability of providing discounts, or if you should create a more pricey service plan options for your customers.


The LTV should always be higher than the CAC, or else you’ll be spending more to acquire customers than the revenue you get from them. You should aim to keep a 3:1 LTV to CAC ratio as the minimum, which is generally the standard maintained in the industry.

CAC Recovery Time

The time it takes for you to recover the money you spent to acquire new customers is the CAC Recovery time. Divide the CAC by the average amount you receive from your customers in a month (the margin-adjusted revenue) to calculate the CAC Recovery Time in months. Visually, the formula looks like this:

For example: If your company’s CAC is Rs.5, 000 /- and your margin-adjusted revenue per month is Rs.500/-; then Rs.5, 000 / 500 = 10 months, your CAC recovery time is 10months meaning you’ll take a period of 10 months to recover your CAC. Generally, the standard CAC Recovery Time shouldn’t go over one-year, although it will differ according to industry. But do remember that a longer recovery time will mean a greater capital investment.


In conclusion, remember that each of these metrics described in this article will give you a good indication on how successful your digital marketing campaigns are. Each of these metrics spotlights just one or two particular parts and stages in your digital marketing campaign, so using these tools together will give you better results. Metrics give you data and depending on how you make use of the data you can extract insights from these metrics which help you discern which digital marketing components work and which ones do not – and you’ll have an opportunity to improve and establish a better and more profitable digital marketing campaign.


Finally, we can’t stress enough about “Less IS better”!

You need to identify and choose a handful of those metrics that matter to you and can help you, after you won’t need all the metrics clogging up space with excessive data. Please resist the temptation from those “more-is-better” people who will certainly come calling with must-have measures to incorporate into your marketing campaign and analysis; ignore them and carry on as you will.