There’s hundreds upon thousands of KPIs that any digital marketing specialist can choose from when reporting the monthly, quarterly or annual performance – And that can create some very different reports.
Whilst there isn’t a standard set of things that a digital marketing report should cover, there are aspects that should definitely make it into any digital marketing report in order to give a truly transparent assessment of online performance.
Visitors, conversions and conversion rates
Whilst senior managers may instinctively ask “how many visitors do we get to the website”, when it comes to writing digital marketing reports it’s much more revealing to analyse the number of conversions on the website. By including the total number of visitors and total number of conversions it’s possible to derive a conversion rate, which is a much more useful KPI when it comes to detailing website performance.
Cost per acquisition figures
So the report states that there’s a decent number of conversions coming through the website, but how much is each of those leads costing? If those conversions are all coming through PPC, which is spending huge amounts of money each month, then there’s probably an issue somewhere in the conversion funnel.
Analysing the cost per acquisition for each channel may also be worth reporting on, especially if there’s a target cost in mind. This will help identify areas which could benefit from some conversion optimisation and areas which could be scaled up to generate more leads at a decent price.
Lead quality and sales per channel
Great, so now we know which channels produce the highest quantity, lowest cost leads. But there’s one factor that we still need to identify – Lead quality.
Tracking which leads continue through the sales process to produce an opportunity or sale is vital in assessing which leads (and channels) are actually producing the best leads. Let’s take two examples…
- 100 leads at £30 each resulting in 1 sale totalling £2,000
- 10 leads at £35 each resulting in 5 sales totalling £1,000
Despite the initial reaction perhaps being that the gross turnover is double in example one, the first example produces a net return on investment of -£1,000 compared to a positive net return on investment (£650) for example two.
Based on some simple analysis it is clear that example two’s leads are much higher quality (converting at 50% compared to example one’s 1% conversion rate) and also produces a positive return on investment.
Lead quality, quantity and cost
By reporting and analysing all three key aspects of marketing leads (quality, quantity and cost) it is possible to give a much stronger indication of how online marketing is actually performing.
Breaking these down by channel or campaign can help identify areas for improvement, and when coupled with ‘softer’ KPIs such as bounce rates, visitors and social engagement can produce a really strong online performance report that ticks all the boxes – It can make a really good business case for expansion, too!