Marketing Metrics That Small Businesses Must Focus on

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Written By : Jordan Beaumont

Posted 05/08/2021

Every company has unique business goals. And optimisation is a huge part of meeting them. But as with most small businesses, while you might be aware of the importance of quantitative data in marketing campaigns, you may not necessarily know what exactly these metrics are.

Here are 7 measurable marketing metrics that you should be tracking.

Return on investment (ROI)

As a small business, you may not have the resources of a bigger business, leaving you with very little room for error. So, if you want to survive and scale, you need to make the most of every dollar you spend. That’s why it is so crucial to measure ROI on your marketing spends.

Return on investment is a metric that looks at what you have earned in comparison to how you have spent. At its core, it identifies whether or not a business venture has generated positive financial returns compared to its cost of capital.

And the formula used for measuring ROI is quite simple, too; ROI = [(Revenue – Investment) ÷ Investment] x 100. 

Impressions and reach

The terms are often confused for one another, but they couldn’t be more different. Impressions refer to how many times your ads have been displayed either to one person or to multiple people. Whereas reach is the number of unique accounts that have seen your ad.

Knowing the difference can have a huge impact on your marketing activities because platforms like Instagram and Facebook may show your ads to one person multiple times, which can increase your impressions but not so much your reach. 

This can lead you to spend more money without generating enough brand awareness. The best way out of this is to put a cap on your impressions to improve your reach. But that’s a whole another topic altogether. (Get in touch with us if you wish to learn more about capping impressions). 

Customer acquisition cost (CAC)

Once you have understood impressions and reach, you need to dive deeper into your customer acquisition costs. This marketing metric measures the total cost of bringing a new customer into your business. It allows you to see if marketing to your customers is costing more than the amount they are spending on your products or services.

For example, if your customer acquisition cost is £100 and your product is worth £80, your marketing costs can transcend your revenue, which can cause you to incur huge financial losses. 

Therefore, the best way to succeed online is to optimise your marketing budget by minimizing customer acquisition costs. 

Website traffic

Organic website traffic is the lifeblood of your business. It is the unpaid search result listings that can increase brand visibility, drive more web traffic, leads, signups, and customers. 

As a bonus, organic website traffic makes it easier to build links, mentions, and authority. And you also need it because no matter how pretty your site is, it won’t make you any money unless it is not optimised for keywords. 

Therefore, it is a strong marketing metric that every small business should focus on improving. Besides, it is the only source of web traffic that you don’t have to pay for. So, it is worth investing your time in. 

Landing page traffic

Landing page traffic is what brings people to your website and helps you convert visitors into leads, customers, and followers. Although they work just like web pages, landing pages have a unique function in marketing. 

In ads, they are usually associated with certain keywords. And while web pages remain constant for everyone, you can have different landing pages to target different demographics using similar keywords. 

For example, Identify Digital can create different landing pages for “digital marketing agency in West Yorkshire” and “digital marketing agency in Wakefield” to attract visitors from both search terms. 

Landing pages can also be used as sales pages. They can navigate a visitor through the sales copy and help them directly check out, thereby automating your sales.

Page load time and bounce rate

Getting insights into your website’s performance can be challenging, but it is necessary to ensure you are heading in the right direction. 

Several factors can affect your website’s performance, including the page load time and bounce rate. And they can prove useful in gaining an understanding of how users interact with your website.

Page load time measures the duration between a user landing on your site and actually seeing the first byte of the response from your site’s server. A two-second delay in your page loading speed can increase your bounce rate by more than 30%. 

More importantly, a one-second delay can cost you $2.5 million per year in lost sales. And small businesses just can’t afford to lose their audience’s attention. That’s why you need to constantly monitor your site speed to ensure it is compatible with all devices. 

Cost per click (CPC) vs. conversions

While there is no single right way, there are many companies that have seen success by focusing on their cost-per-click vs conversions. 

By comparing the cost per click with their overall conversion rate, small businesses can determine which keywords are working well for them, which ones aren’t working at all, and where they need to spend more effort.

For instance, if your CPC is high because you are investing in popular and high volume keywords but you aren’t converting many people, you might have to rethink your landing page strategy or shift your focus to low volume keywords. Measuring both these metrics can not only reduce your marketing spends but also help you get your penny’s worth. 

Conclusion – Small business marketing can get very expensive very quickly if you don’t have a well-calculated strategy in place. So, if you are unsure about your plan and don’t have enough resources to experiment, let experts help you! At Identify Digital, our experience and proven formula allow us to deliver remarkable results and meet your business goals every single time. Get in touch to evolve your business.

About Us

Identify Digital is a team of SEO professionals based in Wakefield, England. Using AI SEO tools, we strive to deliver the most actionable search result strategies that are sure to increase your organic and paid traffic.

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