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Digital Marketing ROI: 5 Metrics You Need To Check

As the modern world has shifted to digital content, many companies have opted for online resources to expand their businesses. This entails hiring professionals to strategize a good marketing campaign for them. Thus, making digital marketing an investment. 

Calculating your digital marketing return on investment (ROI) helps assess the overall performance of a digital investment. This way, you are able to determine whether there’s a need for new marketing strategies. 

Read on to find out the five metrics that the best e-commerce web development agencies use for their assessments.

Return on Ad Spend 

Return on Ad Spend (ROAS) measures revenue earned for ad costs alone. It does not consider other costs like the cost of goods sold. ROAS is beneficial because it lets you determine which marketing efforts are bringing in revenue. 

However, it is useful only up to a certain point. Profit margins have to be assessed by the detail to know the percent of profitable ROAS.

To compute, consider the ROI, which is equal to the net profit divided by the total cost times 100. Then, the ROAS would simply replace net profit with revenue. Both are in percentage.

Cost per Acquisition 

Cost per acquisition (CPA) pertains to the average amount of money businesses spend to acquire a customer through their digital marketing strategies. Companies who paid for campaigns will be able to access this in real-time. This metric is not applicable for SEO efforts, but it is possible to blend two lead sources. This enables business owners to acquire Customer Acquisition Cost (CAC) for their digital marketing.

To compute, take the total marketing spend and divide it by the number of acquired customers. This rate will yield a unit of amount/customer.

Cost per Lead 

Cost per lead (CPL) determines whether digital marketing efforts are worth investing in. It pertains to paid traffic since organic traffic is still paid.

To compute, use AdWords or other platforms. CPL is also known as “cost-per-conversion.”

Average Order Value 

Its name defines the average order value (AOV). Simply, it refers to how valuable paying customers are in each instance that they purchase. It is most useful for e-commerce stores. 

If you multiply the AOV by the repeat rate, you get an even more valuable metric called the Customer Lifetime Value 

Unique Visitors

This metric lets you have a general measure of the visitors on a time interval (usually on a monthly basis). 

To calculate, it is best to refer to Google Analytics where traffic can be identified and valued by source. It can either be paid, organic or social. The value-based metrics of these identifications are also available.

Conclusion

In any business or development, analysis of the metric involved is key to sustainability and redirection. Understanding how these measures interact and react to the business is vital to securing a good return on investment. These numbers should simply be manipulated in certain manners to achieve your specific business goals.

Nahr Dev is a digital marketing agency in Egypt that provides quality web design, ecommerce mobile app development, and custom digital marketing strategies. The secret to successful campaigns is to simply know how successful they are and how successful they could be. Contact us today.

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Nahr Development
https://www.nahrdev.com/
Nahr Development is Rated #1 Company in Cairo, Egypt for: Web Design & Web Developer to Create a Website - Mobile App Development - Online Digital Marketing. Call Now +201005162616

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