Digital marketing has always been and always will be a moving target. What works today may not work tomorrow, and what worked yesterday is unlikely to have the same success right now.

Seemingly, the only constant in digital marketing is growth—by 2027, ad spending is projected to be an industry worth more than $1 trillion. And that’s exactly why companies need to be mindful of the digital marketing metrics they use to measure success in 2023.

Here are the five marketing metrics that companies should focus on for maximum success:

1. Conversion Rate

In the past, marketers would measure the success of their efforts based on the amount of traffic they received from a particular campaign. SEOs, for instance, would target keywords to maximize their potential for clicks and impressions.

The problem with this strategy alone is that it doesn’t account for actual profit. Brand exposure is certainly a good thing, but it won’t necessarily result in sales if a company’s website isn’t up to par or its product lacks where its customers need it to exceed their expectations.

An overemphasis on vanity metrics means that companies are missing out on what really matters: how much revenue they’re generating from their marketing efforts.

That’s why marketers need to start looking at their conversion rate—the number of website visitors who actually complete a purchase or fill out a form, for example. If your conversion rate isn’t where it needs to be, then you should focus on optimizing your website and sales funnel.

2. Customer Acquisition Cost (CAC)

CAC is a metric that measures the amount of money spent to acquire a new customer. It’s one of the most important metrics for any growing business, as it helps marketers understand how much they’re spending to acquire customers on an ongoing basis.

To measure CAC, simply divide the total sales and marketing costs by the number of new customers acquired in a given period. This will give you an idea of how much it’s costing you to acquire each customer, which is essential for budgeting and understanding the effectiveness of your marketing efforts.

3. Post-View Attributions

In the world of affiliate sales, CTV advertising, and other performance-based marketing efforts, post-view attributions allow marketers to track the success of their campaigns. Post-view attribution measures conversions after being exposed to an ad or other digital asset, even if that ad wasn’t clicked directly.

In addition to understanding TV viewership trends and online website traffic, post-view attributions can help marketers understand the efficacy of their campaigns and better allocate resources for future efforts.

A few examples of this include:

  • Post-View Site Visit Attribution: The number of website visits was directly driven by an ad.
  • Post-View Lead Attribution: How many leads came in from an ad campaign.
  • Post-View Purchase Attribution: The number of purchases made directly from an ad.

4. Engagement Rates

Engagement rates measure how often users engage with a brand through likes, shares, and other interactions on social media platforms or other digital channels. This is a great way to gauge the success of your campaigns and understand how customers are responding to content and messaging.

The engagement rate is also a key indicator of the quality of your content and how much people are willing to engage with it. Content that is interesting, informative, and relevant will tend to receive more engagement than content that isn’t as compelling.

Since engagement is ultimately a qualitative metric, marketers need to look at both quantitative and qualitative data to better understand how their content resonates with customers. A few things to consider when analyzing engagement include:

  • Number of likes and shares
  • Number of comments
  • Level of interaction with content

Marketers can compare this data to more abstract metrics like customer sentiment and brand loyalty to get an even better picture of how engaging their content is.

5. Monthly Recurring Revenue (MRR)

The recurring revenue model is far more scalable than traditional sales models, as it allows companies to generate predictable income from existing customers. As a result, understanding and tracking recurring revenue is essential for companies looking to understand their customer base and increase profitability.

Companies that don’t have recurring revenue built into their business model should start looking into ways to implement it to create more predictable revenue streams. For e-commerce businesses, this could mean offering subscription services or loyalty programs to customers. Services and software companies can look into offering tiered pricing models or add-on services to increase recurring revenue.

Final Thoughts

Digital marketing metrics are constantly evolving, so it’s important to stay on top of the latest trends and understand how they can help your business. By understanding the key digital marketing metrics, companies will be better positioned to maximize their success in 2023 and beyond. With the right data and analysis, businesses can make more informed decisions about where to allocate resources and better understand customer behavior.