Marketing just means grabbing attention. Digital marketing means grabbing attention online. This is important to your local business for one very simple reason: The clients you want are staring at screens all day.
Whether you run a Law Office, Plumbing Company or Wellness Center, you’ve probably had to pay someone to help you figure out your website or social media. You may even be running digital ads. But how can you tell if those efforts are paying off? How do you know if your current digital marketing is reaching the clients you want, earning trust and growing your business?
The Lead Science team has outlined 10 Key Performance Indicators (KPIs) that best measure digital marketing success. After 20 years of experience growing clients’ businesses online, this is how we evaluate whether a marketing strategy is delivering results.
1. Track Website Traffic and Source of Traffic – Your website serves as the virtual front door and first impression of your business. Understanding how people are finding and interacting with it is essential.
Google Analytics: This free tool provides a wealth of insights into your website’s traffic. Google Analytics allows you to measure:
- Organic Traffic: Visitors who find your website via search engines like Google.
- Direct Traffic: People searching for your business name directly.
- Referral Traffic: Visitors clicking through from other websites, like local directories or partner sites.
- Paid Traffic: Traffic generated by paid ads on platforms like Google Ads or Facebook.
Important Trends to check:
- Increasing Organic Traffic: If you’re seeing more visitors from search engines, your SEO efforts are likely paying off.
- Growing Direct Traffic: Indicates stronger brand awareness.
- Referral Traffic Trends: A sign of growing local connections and partnerships.
- Paid Traffic Conversions: Ensure that visitors from paid campaigns are completing desired actions like form submissions or purchases.
2. Monitor Local Search Rankings – For local businesses, showing up in relevant searches is critical.
Google Business Profile (GBP) Performance: Your GBP is a powerful tool for appearing in local search results. Google Business Profile allow you to:
- Review the number of times your business appears in searches.
- Analyze how customers find you: through direct, discovery, or branded searches.
Important to check:
- Local Search Visibility: Showing up for queries like “[Divorce Attorney in Boston]” or “[Dentist Near Me]” indicates that your local SEO is effective.
- Search Engine Rankings: Tools like SEMrush or Moz can help track keyword rankings. A steady improvement in rankings for local keywords suggests success.
3. Measure Conversion Rates – Conversions are the ultimate goal of any marketing effort, whether it’s a sale, a booking, or a lead.
- Set up conversion tracking in tools like Google Analytics or Meta Pixel.
Important to check:
- Are more visitors booking appointments, calling your business, or signing up for your newsletter?
- Higher conversion rates signal that your marketing is effectively driving customer action.
4. Analyze Social Media Engagement – Social media platforms are essential for building your brand and connecting with your audience.
Platforms like Meta Insights and Instagram Insights (now combined as part of Meta Business Suite) provide detailed engagement metrics.
Important to check:
- Engagement Rate: High likes, comments, and shares indicate that your content resonates with your audience.
- Follower Growth: A growing number of followers suggests your social media strategy is attracting the right people.
- Direct Interactions: Comments and direct messages often translate to increased customer interest.
5. Track Customer Reviews and Reputation – Your online reputation can make or break your local business.
Monitor platforms like Google Reviews, Yelp, and Facebook.
Important to check:
- Are you receiving more positive reviews?
- Has your overall star rating improved?
- Feedback trends: Look for mentions of excellent service or common complaints to identify areas for improvement.
6. Evaluate Cost-Effectiveness of Paid Ads – If you’re investing in paid ads, you need to ensure they’re delivering returns. Review metrics like:
- Cost-Per-Click (CPC): How much you’re paying for each click.
- Click-Through Rate (CTR): Percentage of people clicking on your ad.
- Return on Ad Spend (ROAS): Revenue generated versus the cost of your ads.
Important to check:
- Low CPC and high CTR indicate well-targeted ads.
- A positive ROAS shows your paid campaigns are profitable.
7. Measure the Growth of Your Email List – Email marketing is a powerful way to maintain relationships with customers.
Use tools like Mailchimp or Constant Contact to track:
- Open Rates: Percentage of recipients opening your emails.
- Click-Through Rates: Engagement with links within your emails.
- Unsubscribes: Too many could signal ineffective messaging.
Important to Check: Steady growth in subscribers and high engagement rates indicate a successful email marketing strategy.
8. Calculate Return on Investment (ROI) – ROI provides a clear picture of your marketing efforts’ profitability. Compare the revenue generated from campaigns to the costs incurred, including tools, ads, and resources.
Formula: ROI = [(Revenue from Marketing – Cost of Marketing) / Cost of Marketing] x 100
Important to check: A positive ROI demonstrates financial success. If it’s growing over time, your marketing strategies are becoming more efficient.
9. Track Foot Traffic and Phone Calls – For brick-and-mortar businesses, tracking offline engagement is equally important.
- Use Google Business Profile insights to track direction requests and calls.
- Implement call-tracking tools to measure the impact of online ads.
Important to check: Increased foot traffic and call volume indicate strong online-to-offline conversion.
10. Survey Your Customers – Sometimes, the best way to gauge success is to ask your customers directly. Conduct brief surveys via email, in-store, or on social media.
Important to check: If a significant number of customers discovered you through your online presence, your digital marketing is driving awareness. If not, your digital marketing might not be getting meaningful engagement.
Tracking and analyzing these Key Performance Indicators will tell you whether or not your current digital marketing is working. Tools like Google Analytics, Google My Business Insights, and social media analytics gather the data needed to refine your marketing strategy. You can master online visibility and customer engagement with consistent monitoring and optimization.
At Lead Science we understand you may not have the bandwidth to monitor and analyze a complex digital marketing strategy. We’ll never judge you for prioritizing the great work you do for your existing clients. Time is money.
But there’s a science to digital marketing and our solutions team would love to help. Our custom platform attracts the people you want and helps convert them into quality leads you can turn into paying clients. Do you have 5-10 minutes?