No plan can reach fruition if its goals are not clearly set. When it comes to digital marketing success, marketers need to establish their goals before devising a digital marketing strategy. And when marketing experts say goals, they mean clearly defined quantitative key performance indicators. If you haven’t identified your key performance indicators, then you are not alone. Recent surveys have found that close to 50 percent of businesses “don’t have a clearly defined digital strategy.”
A clearly defined strategy includes information such as who is in charge of enacting the strategy and whether or not that individual follows through on the plan every single day. Consistency is important so that changes can be made to adjust for dips in measurable KPIs. Marketers recommend choosing digital marketing software that offers real-time dashboard updates that monitor changes and provide the data necessary for relevant insights. Once this portion of the strategy is set, it is necessary to establish the KPIs. Choosing KPIs that promote senior level buy-in to the digital marketing campaign is absolutely necessary.
Martha Modero Gonzalez, the innovation director of consulting firm GROU Crecimento Digital, writes that key metrics like Customer Acquisition Cost, or CAC, are essential in determining the number of dollars that are spent in the acquisition of a customer. Marketers want the CAC to be as low as possible. To follow through with this desire, other metrics like the marketing and sales percentages of CAC are routinely monitored so that costs can be improved as soon as possible.
Other metrics that contribute to the overall return on investment include the customer lifetime value. Once you have converted a site visitor, how long does that customer remain loyal to your brand and services? Using a customer lifetime value to customer acquisition cost ratio, or CLV:CAC, marketers can gain quantitative insights.
At this point in the customer lifecycle, marketers must turn to qualitative factors that assist in customer retention. Surveys and other interactive tools should be incorporated into digital strategies so that marketing and sales teams can assess pain points and offer solutions.
Consistently monitoring metrics and establishing a reporting schedule of the campaign’s return on investment will assist in top leadership’s buy-in. Gonzalez suggests that marketers establish the difference between traditional and digital marketing when making their pitch. Focusing on the benefits of results-driven campaigns encourages confidence in the effort and clarity in the execution.