Today’s marketing is about more than the sale. Given all of the different options businesses have to connect with consumers—and the varying competitors consumers can choose from—there’s often a longer lead time prior to the sale. This is known as the funnel. And it’s within this funnel that another pressing question arises: Are you providing customers and potential customers with value?
Sure, you could ask them. But it’s much easier (and more telling) to measure these numbers yourself. Of course, when you’re newer to marketing, you might feel confused by all the jargon. This is especially true when it comes to your analytics and metrics for marketing.
Marketing by the numbers
The only way to prove the value of marketing budgetary spend—from brand awareness to ROI—are numbers called metrics and analytics. Sometimes these words are used interchangeably though they couldn’t be more different.
While metrics help you gauge progress in the form of numbers, analytics use metrics to help you make better marketing decisions and take action. Both are important to your growth and neither is possible without the other.
CTR Versus Conversion Rates
Two numbers which are very important to your overall marketing efforts are your click through rate (CTR) and your conversion rate.
A click through rate is the number of clicks generated per number of impressions (users that see your ad, email campaign, etc.) received. The click through rate formula is as follows: clicks/impressions=CTR. A good click through rate will vary on a number of factors including your industry and the overall relevance of what you are advertising.
Meanwhile, marketing conversion rates tell you how many people are taking the action you want them to—aka, how many people are converting? The math is simple: (conversions/total visitors)*100=conversion rate. Some popular conversion types include submitting a form, engaging in an online chat with your business, or even calling your business. Conversions can also be things like making a purchase or upgrading a subscription.
When it comes to metrics for marketing, setting benchmarks will help you determine if your overall marketing objectives are proving successful or falling flat. By testing various metrics and analytics, you can aim to improve not only your marketing efforts, but also your sales.