Marketing is an essential facet of business operations regardless of industry, consumer base or business size. There exists a need to continuously connect and engage with new prospects while maintaining fruitful relationships with current customers due to the increased level of competition in the marketplace. An organization implementing a marketing strategy faces the risk the marketing campaign will fall short of its intended goal. However, closely monitoring metrics that track the progress of marketing initiatives helps an organization invest marketing dollars wisely. The performance metrics used in tracking the effectiveness of a marketing campaign include total and unique visitors, origin of traffic, bounce rate, total conversion, lead to close ratio and customer retention rate.

Total and Unique Visitors

A main component of a marketing mix in the business environment is the use of a company's website to inform, connect and engage with consumers. Total visits to a website provides insight into how well a marketing campaign aimed at driving traffic performs over time. Total unique visitors is also an important metric as it provides information on the number of single or recurring visits to a website. A marketing campaign is effective when total visits and unique visitor metrics increase throughout the campaign.

Origin of Traffic

A number of businesses have embraced the use of social media sites to boost brand awareness and relay ongoing marketing messages to current and potential customers. The purpose of social campaigns is not necessarily to drive traffic to the social media site but rather the company's website where additional information is gathered and purchases are made. The effectiveness of a marketing campaign that focuses on driving traffic to a company's website through outside sources can be measured through the origin of traffic metrics. If total visits to the company's site are generated from social media, the marketing campaign is deemed successful in its reach.

Bounce Rate

Another important metric in marketing is the bounce rate as it provides the percentage of visitors to a company's website that leave shortly after visiting. Bounce rates are high when a number of visitors click through to a website but do not click any additional links or request information from the company. A low bounce rate provides a greater chance of visitors completing the task the marketing campaign was intended to produce. These results often include filling out a contact form, signing up for a newsletter or completing a sale.

Total Conversion and Lead to Close Ratio

An important measure of marketing effectiveness is return on investment (ROI) quantified by total conversions and the lead to close ratio. Conversions equate to success for the organization and most commonly come in the form of completed purchases. A company's lead to close ratio measures how effective sales efforts are after a customer engages with the marketing campaign. Both conversions and lead to close ratios are high when a marketing strategy is connecting with consumers in a meaningful, profitable way.

Customer Retention Rate

Companies must also work to retain current customers through their marketing efforts. A subscription-based business model and an e-commerce company can easily measure the number of customers who return for repeat purchases. Retention rates are often higher for the organizations that focus a segment of their marketing strategies on past or current customers.

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