Sales is one of the most important metrics to track when measuring the success of your digital marketing campaigns. After all, the ultimate goal of any digital marketing campaign is to generate revenue and grow your business.
There are a number of different ways to measure sales from digital marketing. However, some of the most common and effective methods include:
1) Using a marketing attribution model
A marketing attribution model is a set of rules that assign credit to different marketing channels and campaigns for their contribution to sales. This can help you to understand which of your marketing efforts are most effective at driving sales and which ones need improvement.
There are a number of different marketing attribution models available, but some of the most common include:
- Last-click attribution: This model assigns all credit for a sale to the last marketing channel that the customer interacted with before making a purchase.
- First-click attribution: This model assigns all credit for a sale to the first marketing channel that the customer interacted with on their journey to purchase.
- Linear attribution: This model distributes credit for a sale evenly across all of the marketing channels that the customer interacted with on their journey to purchase.
- Time decay attribution: This model assigns more credit to marketing channels that the customer interacted with closer to the time of purchase.
The best marketing attribution model for your business will depend on a number of factors, such as your industry, sales cycle, and marketing goals. It is important to experiment with different models to find one that works best for your business.
2) Tracking the customer journey
The customer journey is the path that a customer takes from awareness of your brand to purchase. By tracking the customer journey, you can identify the touchpoints that are leading to conversions.
There are a number of different ways to track the customer journey, such as using web analytics tools, CRM systems, and customer surveys. Once you have identified the touchpoints that are leading to conversions, you can focus your marketing efforts on those touchpoints.
3) Using a CRM system to track leads and customers
A CRM system can be used to track all of your leads and customers, as well as their interactions with your brand. This information can be used to segment your customers by source and track the number of customers acquired through digital marketing channels.
4) Calculating the CAC and CLV for your business
The cost per customer acquisition (CAC) is the average cost of acquiring a new customer through digital marketing. The customer lifetime value (CLV) is the average revenue that a customer generates over the lifetime of their relationship with your business.
By calculating the CAC and CLV for your business, you can understand how much it costs to acquire a new customer and how much revenue a customer generates over their lifetime. This information can be used to optimize your marketing campaigns and improve your profitability.
Here are a few case studies of businesses that have successfully measured sales from digital marketing:
Case study 1:
A SaaS company was using a last-click attribution model and found that their paid search campaigns were driving the most sales. However, after implementing a linear attribution model, they found that their content marketing campaigns were actually driving more sales than their paid search campaigns.
By switching to a linear attribution model, the SaaS company was able to identify the true impact of their content marketing campaigns and invest more resources in creating high-quality content.
Case study 2:
An e-commerce company was using a CRM system to track all of their leads and customers. They found that their email marketing campaigns were driving the most new customers.
The e-commerce company was able to use this information to segment their customers by source and send targeted email marketing campaigns to each segment. This resulted in a significant increase in conversion rates and sales.