When we speak of Analytics in Inbound Marketing, many questions arise. We will try to dispel them by explaining what to measure, at what moment and why.
Albert Einstein once said, “If I had an hour to solve a problem and my life depended on the solution, I would spend 55 minutes thinking about the problem and 5 minutes thinking about the solution”
When we speak of Analytics in Inbound Marketing, the exact same thing occurs:
Running an effective campaign requires 3 things: Patience, commitment and making the correct decisions. –
Patience and commitment because it can take months to see significant gains, and a good decision-making because without the analytical part we cannot maximise the strengths and resources of the campaign. The more patience and commitment we have, the longer it will take to see any kind of positive result. This scenario raises the question, what do we measure in Inbound Marketing?
Analytics in Inbound Marketing: metrics to measure
Growth in sales and profitability
At the end of everything, the best way to measure the success of an Inbound Marketing campaign is through the growth in sales revenue, from which we can derive the final profitability of the campaign.
Measuring sales growth is important for both the long-term health of a company and of the campaign, because it not only serves as a good indicator of strategic planning but it also allows us to anticipate trends.
This is pure mathematics. The companies that generate the most leads are those that will have greater sales opportunities. However, not all leads are equal. There is a big difference between Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL).
We could summarise the first as a contact that we have identified as part of our target audience and that has the possibility to become a customer, and the second are leads that have already made the decision to assess our products or services in order to cover their needs.
The synergy between both of them is what will give us the Leads to Close ratio, the number of potential customers we have received during a specific period of time between the actual amount of customers that have been captured.
Lifetime Value of a Customer (LTV)
The idea of determining what the customer’s benefit is during the entire time they spend with us seems complicated but there is still no excuse for not knowing it. It is somewhat similar to determining how many users from those we have on our database open our e-mails.
It is a very important metric for measuring the company’s ROI and it is a great starting point for developing future business strategies.
We are a B2B company that sells industrial equipment valued at €20,000 but whose gross margin is 35%. Suppose that our buyer is only going to make a purchase. The profit from their relationship with us will be €7,000.
However, if we take into account a scenario where they purchase several times… Let’s say five as an example, the profit in this case would amount to €35,000. Although we would have to share this over the time that they have spent with us.
Cost of Customer Acquisition (COCA)
The cost of customer acquisition is the cost associated with convincing a user that we are the best option for them. This serves to establish goals on the number of customers we need in a year and to allocate a suitable budget for the campaign.
Traffic to Leads Conversions
This is simple. Out of all visits to your website, how many become leads? This metric measures two very interesting things:
- The quality of the traffic
- The conversion rateWhat is really interesting to see here is the leakage points of the conversion funnel, because we often focus on capturing traffic when we really need to improve the checkout process.
Relationship between leads
Leads that may become Marketing Qualified Leads (MQL)
Out of all leads generated, how many would you consider as MQL? The answer will help us to address the quality of the leads we are generating. If you have a low ratio, you should look at the quality of traffic on your website.
MQLs to SQL
The same dynamic as above. Out of all MQLs, how many could we place as an SQL? This is a metric in cooperation between marketing and sales, or what we also know as SMarketing. Good communication and understanding between teams will be a high coefficient
SQL in sales
Direct reflection of the ability of the sales team to move potential customers into the last stage of the purchase cycle. Why do some do it and others not? This may be due to different factors such as the time-line analysed, budget, competition, personalisation, etc.
We analyse the users who visit our website because they are the ones who could become leads.
Getting to know the traffic of our website, who they are, where they come from and what they did will allow us to determine a very important piece of information: what it is that they expect from us. This information helps us to anticipate what the users need. Basic metrics:
- Page views
- Pages per session
- Average duration of the session
- Bounce rate
Engagement on social networks
A social network strategy forms part of the significant efforts we have to make in Inbound Marketing as it allows us to distribute our content and interact with current users and potential customers.
We measure impressions, clicks and reactions. The best time to post? When you have something interesting to say.
Remember that two identical businesses do not have to be on the same social network. This will depend on their objectives.
E-mail marketing results
In addition to social networks, the e-mail marketing strategy is essentially our lifeline with the user. As such, each campaign must be analysed in a multifaceted way, according to the objectives of the Inbound campaign. However, some examples of metrics to be measured here are opening rates, clicks, closures and, of course, conversions.
Link-building must be the cornerstone of each SEO strategy. When someone links our site, it means that we are creating familiarity. The more people that link us, in theory the more authority we will have, the better our search rankings will be and the more traffic we will receive.
Conversions per Landing Page
If the landing pages attract the right users, we need to know which ones are the best for converting by measuring clicks on the CTA, scroll depth, and obviously leads.
Knowing how the blog entries are working is a good way of measuring what the users like to read. This, as a result, is our brand value, allowing us to create even more content related to a segment that is working the best.
Nevertheless, if you want to start somewhere, do so by clarifying your objectives, specific to each Inbound Marketing activity you perform, and then find the appropriate metrics for telling a story.
Has the segmentation strategy provided better results? Have we improved engagement with the blog’s new approach? Is our lead nurturing time ideal for producing more sales? Remember that these questions are not about the data but about its impact.