Business Metrics

The Marketing to Revenue Ratio for a Company

Measurement is what makes marketing a science, rather than a superstition.

For many business owners, marketing is a superfluous expense, something to spend money on only when the budget is flexible enough to accommodate it. This is because the return on investment on marketing is, in many cases, unpredictable. Your ad could be a resounding hit, flooding you with thousands of new interested customers, or it could be a seeming dud, wasting your time and money.


Solid metrics give you the insight to overcome this hurdle of unpredictability.


If you’re just starting out or you need to overhaul your existing marketing strategy, make sure to familiarize yourself with these marketing metrics:


  1. Total Visits.

My main website is my primary target for my customers and potential customers, but I can also measure total visits to any location relevant to your strategy, such as a landing page for a pay-per-click campaign.


Measuring my total number of visits will give me a “big picture” idea of how well my campaign is driving traffic. If I do notice my numbers drop from one month to the next, I’ll know to investigate one of your marketing channels to figure out why.


In a healthy, steady campaign, you should expect your total number of visits to grow steadily.


  1. New Sessions.

A metric found in Google Analytics, the total number of new sessions will tell us how many of our site visitors are new and how many are recurring. It’s a good metric to understand because it tells me whether my site is sticky enough to encourage repeat customers as well as how effective my outreach efforts are.


If I change the structure or content of my site significantly and my ratio of recurring visitors to new visitors drops, it could be an indication that my website is losing effectiveness in warranting multiple visits.


  1. Channel-Specific Traffic.

Found in the “Acquisition” section of Google Analytics, the channel-specific metrics will segment the traffic based on their point of origin. This is especially useful for a full-scale digital marketing campaign because “total visits” can’t give me an indication of which channels are outperforming the others.


  1. Bounce Rate.

The bounce rate shows me what percentage of visitors leave my website before further exploring my website.


  1. Total Conversions.

Total conversions is one of the most important metrics for measuring the profitability of your overall marketing efforts.


While it’s possible to define a conversion in many ways such as filling out a lead form, completing a checkout on an e-commerce site, etc., conversions are always seen as a quantifiable victory in the eyes of a marketer.


I can measure conversions on my site directly, depending on how it’s built, or I can set up a goal in Google Analytics to track my progress. Low conversion numbers could be the result of bad design, poor offerings, or otherwise disinterested visitors.


Over time

You’ll be able to refine your tactics, closely examine which strategies work best and why, and end up with a steady marketing rhythm that can generate more than enough leads to cover your marketing costs and deliver a significant profit. See our faq for more information.