Hi friends, this is Biju Seth welcome to digital weekend hack. In this edition we are going to know about what are the factors we should analyse for digital marketing. Digital media is the most effective media now a day. We can actually do lot of savings in terms of marketing if we are able to analyse the right strategies for Digital Marketing. There are many factors which we should consider but the important one are as follows.
First is Digital Market size and penetration rate, we do have to really care about what is the size of market we are addressing to, who could be our potential audience. Is there a growth in that market we are targeting to what is the penetration rate in terms of digital.
Second, we should analyse the Customer acquisition cost. Customer acquisition cost is the average cost we are willing to spend in to getting new customers on board with us. Does that is feasible in terms of other channel of acquisition cost, we need to analyse with respect to opportunity cost to it. Does this is going to amplify us in long run.
Third, the Customer revenue rate: Being a CEO CMO or top C level executive of our start-ups we need to analyse what is the revenue we are getting from the acquired customer we are bringing in through digital channel V/s other channels. Weather it is growing at a desired rate. Are we getting more customers coming in over a period of time is there any future growth in revenue if so what is the forecast rate. Weather we are getting more referrals from there. We also need to analyse weather customers are growing Month on Month in terms of revenue V/s Expenses on it.
Forth, is Customer Life Time Value: Being a CEO or being in a Strategic decision maker of your start up, we do have to really care about the customer lifetime value we are getting in from the Digital Marketing. The cost includes from the acquisition of the customer till its life span value with us the revenue which we are getting till the customers stays with us. If a customer comes in one time and stays for a long time and makes purchase again and again that’s the customer lifetime value for us. Example, if we sell a monthly subscription based product and our monthly subscription value is $50.00 and if customer, let say stay with us for a year that the life time value would be $50.00 X 12 Months = $600.00 that’s our lifetime customer value.
Fifth point is Comparison of acquisition from one channel V/s other The another important data which we should analyse is what is the acquisition cost from one channel v/s other Search engine channel V/s Social Media what is the cost of acquisition in search engine for us v/s social media. What is the market size for us across channel? What is the revenue size or ticket size? What is the retention cost to it? What is the category of customer we are getting? What is the customer lifetime value?
Also we should look for Competitive comparison over competitor in the Market: We should do comparatives analysis on, what is their growth rate with respect ours, what is their retention rate with respect to ours, what is their customer’s life time value with respect to ours.
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