The main differentiator of the digital world, where everyone browses today, compared to the one we lived in before the internet, is that today everything is measurable. With this in mind, metrics and indicators are allies of fundamental importance for the development of companies.
These factors must be part of the work routine as well as the financial results, including to mark them out and expand the direction of the business. Producing metrics and monitoring indicators is relevant for business planning and for formatting the execution of projects. According to The CMO Survey on corporate marketing, 65.7% of companies are investing in data analytics.
The main metrics adopted to measure performance have been the impact on sales and customer engagement from social media. Metrics are the quantitative data that show action performance. Indicators are calculated from metrics. The use of these indicators is important to define new investments and strategies and there are several metrics, from the simplest to the most complex. It is necessary to understand the function of each of them to succeed in digital marketing actions.
One of the main indicators is ROI, an acronym that stands for Return on Investment, return on investment, obtained by subtracting costs from total revenue and dividing the result obtained by these costs. Another widely used metric is CPL, cost per lead, the investment made in each potential customer for the purchase of products and services. On the other hand, CTR, Click Through Rate, allows you to measure searches by customers, point out how many clicks were obtained in each campaign, scaling performance in terms of interest to attract audiences.
Among other popular indicators, there are also the average ticket, which shows how much the company earns on average with each purchase, and the conversion rate, which can be used throughout the customer’s journey, from the first contact with the company’s page to the closing the purchase or filling out a request.
These metrics are quite common and are already in practice by most companies that adopt digital marketing as a means of generating business and strengthening their brand. However, there are some that are more valuable, such as Brand Equity Value and Customer Lifetime Value, still little known to companies.
Brand Equity Value is the additional value attributed to the brand, which influences the price of a product or service, according to the consumer’s evaluation. It is necessary to measure how the customer feels and relates to the brand and how much he is willing to pay for it, in order to evaluate and direct branding actions and investments.
Customer Lifetime Value works as a forecast of net income, taking into account the results of the present and future customer relationship and its duration. The focus is not just immediate sales, but investing to retain this consumer in a continuous relationship, loyalty. After all, expanding the market through new accounts can be much more expensive than expanding business with repeat customers.
The use of metrics and indicators is a management tool that allows the company to have greater focus and clarity on the business. The market itself demands this evolution and the good manager knows that he needs innovative techniques to ensure better performance and greater productivity, highlighting the company among competitors with accurate and strategic information.
With so many different indicators, to choose the ones that should be applied in your company at each stage of the process of attracting, converting and retaining customers, it is recommended to have access to qualified professionals in digital marketing. WSI Consultoria has more than 25 years of experience in the market, nationally and internationally, with more than 1,000 units in more than 80 countries, offering integrated solutions that bring effective results to clients, such as strengthening the brand, more leads, business opportunities and, of course, profitability.
* Caio Cunha
Caio Cunha is President of WSI Master Brasil, co-founder of WSI Consultoria and member of the Global WSI Internet Consultancy Advisory Board. With more than 25 years of experience in the technology industry, he has reached high-level executive positions in large multinational companies such as PWC (with IBM and Unisys clients), SAP and Hitachi Data Systems, in Brazil and abroad. Throughout his career, he has participated in professional development programs at universities such as Stanford University in California and IMD International in Switzerland. He has an MBA in finance from IBMEC and a degree in Business Administration from PUC, with two years at Roosevelt University in Chicago.
About WSI
WSI is the largest and oldest digital marketing franchise in the world, with more than 25 years of experience in the market, around 1,000 franchisees and operations in more than 80 countries. It has been in Brazil for over 10 years, with over 20 units offering digital marketing solutions. The company offers its franchisees a wide portfolio of digital solutions so that they become strategic advisors for their clients, identifying business opportunities, analyzing competitors and strengthening the online brand and leveraging the return on investments.
WSI World
(11) 2368-4002
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