Mentioned below are 5 digital marketing ROI metrics that can help calculate the fruit of your marketing efforts.
1. Unique Monthly Visitors
This metric is helpful in providing you information regarding how many people are visiting your website on a monthly basis. This can be tracked directly in Google Analytics, so you won’t need to perform calculations by yourself.
2. Cost per Lead
Cost per lead helps you determine whether or not you are earning any profits by your digital marketing efforts. Cost per lead is also called cost-per-conversion and can be calculated directly on advertising platforms such as AdWords.
3. Cost per Acquisition (CPA or CAC)
Cost per acquisition helps you determine what you are paying to obtain a real customer, not just a lead. It does not apply directly to SEO efforts. To see your actual Customer Acquisition Cost across all of your digital efforts, you will be required to blend the two lead sources together.
Cost per acquisition is calculated by dividing your total marketing budget by the number of acquired customers.
If you are able to associate revenue directly to digital marketing efforts, then Return On Ad Spend can prove to be a very helpful metric for you.
The aim of using ROAS is to look at profit instead of revenue. Since we know digital marketing ROI is calculated as:
ROI = (Net Profit/Total Cost) * 100
Then ROAS is calculated as:
ROAS = (Revenue/Total Ad Spend) * 100
For example, if you spend $200 on ads and get a $400 revenue because of it, it also costs you $200 to make the product. Your ROAS will then be calculated by [(400/200)*200)].
5. Average Order Value (AOV)
Average Order Value is a metric that is most useful for E-commerce stores but can also be used by B2B services.
AOV determines how important and valuable your customer is based on how they purchase your product. For E-Commerce, the AOV can be multiplied by the repeat rate to get an even more valuable metric called Customer Lifetime Value.