The Seven Performance Metrics that Matter Most
Dealing with the performance measurement challenge
In an era of constantly evolving technologies and platforms, companies need a bulletproof game plan for measuring their digital marketing programs. But standing in their way is a big challenge, according to Digital Impact: The Two Secrets to Online Marketing Success, a new book written by eMarketer CEO and co-founder Geoff Ramsey and Vipin Mayar, EVP of McCann Worldgroup.
“Digital marketers today are drowning in metrics, but they don’t know which ones are important or how to connect the dots in a meaningful way that will drive marketing performance,” said Ramsey.
Marketers are desperate for a clear, comprehensive and effective set of metrics and measurement systems for driving marketing performance.
Digital Impact makes a bold proposal: There are only seven metrics that are critical for performance measurement across digital channels. While countless other metrics are available to marketers, these seven are the ones that marketers should seek to master.
Qualified Reach, or Qualified Visits: Qualified Reach is the one critical metric that every marketer should use—specifically because it captures two important dimensions that no other single metric does: both quantity (number of individuals) and quality (the users have performed a desired interaction, which in turn suggests a degree of interest or intention on the part of the consumer). Depending on the channel, the specific metrics marketers use will vary, but the emphasis is always on actual behavior—a far different approach than typical measurements of raw reach and frequency.
Clickthrough rates: Clickthrough is the most commonly used metric by online advertisers. Although it is still relied on too heavily, and in inappropriate ways, CTR should continue to be used as a diagnostic metric for direct response initiatives—however, it should not be used as a primary metric. Read More »