Have you ever wondered what metrics to track as a marketing agency? Most agencies—big and small—struggle with this very question. With how complex marketing is today, it’s easy to get lost in different theories, methods, new technology, and more. All of those result in a flood of more data.
In fact, there are plenty of metrics an agency could track that might sound great at first but don’t actually provide any actionable insights into your business. Here are the best metrics to track if you want to grow your marketing agency successfully.
You’ve probably heard of the AARRR framework before. It stands for Acquisition, Activation, Retention, Referral, and Revenue. In order to track the growth of your marketing agency, you need to be tracking all five of these metrics.
First, start with the acquisition, which is how many people are visiting your website vs those who submit a lead. Next is activation, which is how many people sign up for your agency services. Thirdly, there’s retention—the percentage of customers who stick around after their trial period ends.
The fourth is referral or the number of people who recommend your company to others without being asked by someone else or an employee at your company. Finally, you have revenue. This can be tracked as income or profit generated per customer per month/year.
You will be able to better understand what areas need more attention in order to grow effectively the more metrics you have in place.
- ROI/ROAS Tracking Section: Traffic via SEO
Assuming that your marketing agency offers SEO services, one of the most important metrics to track is ROI/ROAS. ROI is Return on Investment and ROAS is Return on Ad Spend. These metrics measure how much revenue is generated for every dollar spent on advertising. If your agency isn’t tracking this metric, you could be leaving money on the table.
Organic traffic is the most valuable but you have to be ready to play the long game. That’s where ROI/ROAS comes in. To ensure your team is on track with the set goals, it’s important to keep an eye on this.
- Conversion Rates
While we want more and more traffic, not all of it translates into leads and sales. It’s vital that you keep track of how many leads your website generates from each source, how much revenue each one produces on average, and what percentage of traffic results in a conversion (sales or email signups).
The best way to be viewing your conversion rates is by looking at them through these numbers, All-Time vs. Monthly Average. Track your conversion rates over time and compare them with those of your competitors to know how well you’re doing in the industry.
You might think your landing page design is great, but it could be contributing to a steady decline in conversions month over month. The blog articles you’ve been publishing may be doing well but it doesn’t tell your site visitors how to get in touch with you or avail of your products. Always look to how to get them one step closer to making a purchase or a deal with your business.
- ROI/ROAS Tracking Section: Traffic via Paid Advertising
SEO is great for organic traffic but paid ads could offer a quick boost when you want to reach your marketing goals faster and, in effect, increase the bottom line quicker. Another metric you should track is how much revenue your paid advertising brings in.
Using Google Analytics, you can identify how much traffic is driven from PPC campaigns, and track how much money is spent in relation to that traffic. In addition, looking at these metrics will help you determine whether or not paid search ads are worth continuing.
By setting up conversion goals in Google Analytics, it’ll be easier to measure the ROI and ROAS of specific campaign activities. One good idea is to set up retargeting campaigns on Facebook or Instagram.
Your goal is to bring in more customers via this channel than you pay out with ad spending. With this knowledge, you can run profitable campaigns and continue spending on what works best for your business without any hesitation.
- Outreach via Social Media
Before achieving any outreach, several steps have to be taken, starting with keywords.
Keyword research is important in order to understand which is most relevant to your business and will help you generate leads.
Outreach via social media is also key in order to connect with potential customers and build relationships. The ultimate purpose of monitoring outreach is hoping these would translate into sales.
Finally, tracking leads converted into sales will give you an idea of how effective your marketing efforts are. Social media can be used as a lead generator when done right, so make sure to stay on top of these metrics!
- Customer Acquisition Cost (CAC)
As a marketing agency, your main goal is to acquire new customers. Therefore, your customer acquisition cost (CAC) is one of the most important metrics to track. CAC measures how much it costs you to acquire a new customer, and it can be calculated by dividing your total marketing costs by the number of new customers acquired.
In order to lower your CAC, you’ll need to close more deals per dollar spent in marketing and sales.
- Ancillary Revenue Percentage
The Ancillary Revenue Percentage (ARP) refers to the amount of extra revenue your marketing agency generates above and beyond your direct efforts. This could be referral income, bonuses, or the selling of white-label tools (where most of the ARP dollars come from).
If you aren’t generating any ARP, you’re leaving money on the table and working too hard for the amount you’re generating.
What Metrics Should a Marketing Agency Track?
There are a lot of different metrics that you could track as a marketing agency, but not all of them will be equally valuable. The best metrics to track are those that will give you the most insights into your business and help you make decisions about where to focus your efforts.
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