Importance of Digital Marketing

The three main advantages of digital marketing are as follows:

Reaching and targeting the right audience

Data-driven marketing
Result-oriented / high ROI

Reaching and targeting the right audience

It is very important for a marketer to understand who they are selling their products and how to reach
them. Digital marketing offers two distinct advantages in this regard:
1. Larger reach

2. The right target audience

As you can see from the infographic, there are 4.54 billion internet users in the world. Out of this
population, over 90% actively access the internet on their mobile phones. This is why it is so
important for your business or brand to adopt digital marketing, as the potential audience is vast. 

To put this into perspective, let’s compare the reach of a brand using digital channels and traditional
channels. Suppose you place a front-page ad in a leading newspaper in India. The average
newspaper-reading population in India is only slightly above 30% of the population, close to 425
million. And this potential reach is possible only if you place a front-page ad in every newspaper in
India.
On the other hand, Internet usage has already crossed 40% penetration and is only bound to grow, as
more and more of the rural population is gaining access to mobile phones and reliable Internet
access.
Sources:

• Global digital population 2020

• Internet users in India 
Print readership in India jumps 4.4% to 425 million

Target the right audience at the right time:

Digital marketing also allows you to target the right audience more than any other channel. For
example, an aviation brand such as Indigo may choose to reach its customers through newspaper
ads or billboards, but this is limited due to the fact that Indigo has no control over who sees the
billboard ads on the road or the newspaper ads. These ads can be easily seen by consumers of other
than your target audiences, such as train travellers or people who do not travel. This approach is a
less e cient method of reaching your consumers.

Now suppose Indigo was able to reach only those consumers who are willing to y, i.e., those who
they know will de nitely have a higher rate of buying into their brand. You could argue that if Indigo
places the same billboard ads at airport terminals, they could get more consumers who are currently
ying and will continue ying in the future. 

Now, imagine a consumer is searching online for ight tickets from Mumbai to New Delhi. At this
very point, if Indigo placed an ad for their ights as a sponsored ad on Google Search, the consumer
has a higher chance of clicking it and buying a ticket. You can clearly see the difference here: Indigo
was able to reach the right audience (i.e. consumers who are intent on ying) at the right time (when
consumers are about to purchase a ticket or are considering purchasing one).

This type of focussed targeting is an advantage that only digital marketing can provide. You have
the ability to showcase your ads to the speci c target audience, who can then engage with your
brand or buy your product.

The power of data

Another advantage of using digital media is the rich data that comes with it. Data can range from
the behaviour of your audience, their activities and interests to the way you are acquiring new
customers and their key characteristics. You can understand whether your consumers are repeat-
purchasing your products and whether or not they are delighted with your products.

You can understand the power of data in digital marketing through the example of a brand such as
Spotify. Imagine Spotify doing a campaign to get more customers to buy ‘Spotify Premium’, an ad-
free music streaming service. While targeting the digital customer, what if Spotify already knew
which of these consumers were interested in music? What if Spotify knew which consumers had
already searched for their product online? This is how data helps digital marketing. 

In order to reach the correct consumers, Spotify targeted speci c audiences interested in music. As
shown in the image (audience pro le from Facebook Audience Insights), approximately 150–200
million users on Facebook are interested in music. This audience can further be divided by genres of
music, such as Bollywood, rock or hip-hop. The targeting options are limitless here. 

It is also easy to measure the results of your campaigns in real-time. This leads to increased
exibility when running campaigns. To understand this, let’s get back into the shoes of the digital
marketer for Spotify. In a social media campaign, Spotify ran posts on Facebook, Instagram and
Twitter. Digital marketing allows you to monitor the performance of each post, minute by minute.
This leads to better decision making. You can add more Facebook posts if they are performing better
than the other platforms. You can even reduce your budget from low-performing channels and add
them to higher-performing channels.

ROI
As a marketer, it is important to understand the business impact of your marketing efforts. This can
be done by measuring the return on investment, i.e., the net pro t generated divided by the total
investment. We will look at this in detail when we cover the digital marketing channels in the
upcoming modules.
Digital marketing has two distinct advantages over traditional media when it comes to ROI:
1. Better measurement
2. Higher ROI
1. Better measurement

The rich data that digital platforms provide help to measure the ROI more accurately. A marketer can
easily understand the conversions from each stage of the consumer funnel, i.e., how many
consumers converted from the awareness stage to the consideration stage, from the consideration
to the purchase stage, and so on. 
Continuing with the example from above, Spotify could easily understand which consumers have
clicked on / interacted with their posts on Facebook, Instagram and Twitter individually. It could also
identify the consumers who clicked on the links in the captions, downloaded the app and bought the
premium membership. This is a very e cient measurement system as opposed to traditional media.
If Spotify ran a newspaper ad, it would be hard to pinpoint the consumers who downloaded the app
after seeing the newspaper ad. It would be equally hard to pinpoint the consumers who saw a TV ad
and then searched for the app on Google. However, as soon as this consumer gets on a digital
platform such as Google, Spotify can easily identify the consumers who searched for their app on
Google and downloaded it right after.
2. Higher ROI than traditional media
Digital marketing generally offers a higher ROI than traditional media. The ability to optimise your
marketing campaigns in real-time helps to reduce loss and enhance performance. Moreover, the
ability to ne-tune campaigns on the y makes digital marketing a safe bet. Moreover, since it is an
e cient way of reaching the most preferred audience, it also streamlines the campaign, making it
visible only to the most relevant consumers. 

For more information, click on https://www.lyfemarketing.com/blog/digital-marketing-roi/

Digital Transformation in Businesses: Part 1

Digital Transformation in Businesses: Part 2
In this segment, you will see how the US-based consumer electronics company Best Buy introduced
new distribution strategies to rightly target its customers. You will also see how digital technology
entered the retail industry and inspired both traditional and new players to reach their customers.
To lead digital transformation at your rm, there are four important factors that you must consider:
1. Customers’ wants and needs: You need to realise what the needs of your customers are. For
instance, C&A realised that people always seek the opinions of others before buying clothes,
and hence, it came up with digital hangers that captured Facebook likes. Similar to this,
many other companies who improved their businesses through customer focus will be
discussed during a later part of this module.
2. Intermediary collaborators: You need to understand the costs that your collaborators seek
and the value that they add to your business. You saw the example of Dixons Carphone, who
partnered with Microsoft to come up with the Wishlist concept. The value added by this
collaboration directly served the need of Dixons Carphone’s customers.

3. Competition: You must be aware of how your competitors or potential customers are on the
digital front. You should also ensure that you learn the right lessons from your competitors.
You saw how the record labels did not realise the potential of digital music — something that
Steve Jobs realised and leveraged extremely well.

4. Channel and its power of in uence: Depending on your business and how you wish to bring
digital change to your rm, you must identify the right channel. GSK and Coca-Cola realised
the power of online channels and launched completely different products. While Coke
 launched its Share a Coke campaign and e-commerce platform, GSK launched apps that
served its customers’ needs related to its business.

Digital Disruption in Industries

Introduction - Digital Marketing Channels
Opportunities in Digital Marketing
how digital marketing has opened up new opportunities for today’s marketers, allowing them to
reach out to the consumers and help them make better decisions.

As you saw in the video above, some of the advantages of digital marketing are:
1. Better measurability

2. Real-time monitoring
3. Easier troubleshooting
4. Personalisation

5. Improved e ciency

Monitoring various parameters such as likes, comments, and views help in real-time strategising as
well as long-term monitoring and optimisation. For instance, you saw how Bajaj improved its
campaign’s performance by customising communication with regional content. You also saw how
Dove used real-time monitoring offered by digital marketing to immediately send out an apology for
an ad that was deemed racist by the online community.
What are Digital Marketing Channels?
These are traditional ones, even websites where u see ads are considered as channels

e.g:- in mail ads, retargeting ads are used to push users from consideration phase to purchase
phase.
At the awareness stage,
 Then, at the consideration stage,

Finally, at the purchase stage,

List of Digital Marketing Channels

There are a few advanced methods which are basically employed on a higher level. These methods
run across multiple channels and are:
1. Remarketing: A technique through which you can reach out to a website visitor by dropping
a cookie in his/her browser. Cookies are small temporary les which can store digital
information. For example, imagine that you visited the page on Amazon showcasing
different models of the Samsung mobile phone. But you left Amazon's website without
buying the phone. You must have then experienced ads which follow you even after you
leave Amazon's website encouraging you to come back and buy the Samsung phone. This is
because Amazon stores cookies on your computer when you visit the website and thus
stores your information. Remarketing, thus, helps Amazon to re-target users who have
already visited the site. Basically, it is a technique by which you can market to your potential
customers repeatedly and nurture them towards conversion.

2. Content marketing: A process through which the idea around a brand or product is built
instead of directly promoting it. For example, Magicbricks.com, a website which deals with
real estate solutions for property buyers and sellers, engages its prospective customers with
content around its business. Check out the ‘Advice’ tab on its website, which is always
updated with insights from the real estate market.

3. Growth hacking: A process of rapid experimentation across marketing channels to grow

business. For example, if you are trying to buy a product on Vistaprint, it tries to upsell you
related products which are customised with the logo you submit. This is the kind of hack
where the growth hacker has understood the opportunity in the checkout process to increase
the average order value. You can refer to more such examples of successful growth hacking
here.
Mapping Channels to Funnel Stages
you must map each channel to the three consumer funnel stages which you learnt in the previous
session. It’s this relation between digital channels and the consumer funnel that will help you
achieve the best possible results and conversions in your marketing campaigns.
Consider a B2B company that uses different digital marketing channels at different stages. ‘Shopify’
is a Canadian e-commerce company that develops computer software for online stores and retail
point-of-sale systems. Let’s take a look at how this B2B company uses different digital channels at
different levels of the funnel:
1. Awareness: To generate leads for its business, it uses SEO by enriching the content on its
website with relevant keywords. For example, if you search for the keywords ‘e-commerce
software’ or ‘e-commerce builder’ on Google, Shopify’s website tops the search results. So, at
the top of the funnel, it utilises SEO and SEM to increase its visibility.
 2. Consideration: At the middle of the funnel, Shopify’s objective is to convince the users that
its product will make the life of an online store owner easy. For a product like Shopify, it’s very
important to educate the users about its features and usage. Hence, at the consideration
stage, Shopify uses webinars and ebooks to constantly push information to educate the
prospective customer. It uses Facebook for remarketing by showing targeted ads to users
who have visited the website previously. Other social media channels such as Linkedin and
Youtube are also used to push content organically. Shopify also uses Instagram to tell stories
about budding entrepreneurs.

3. Purchase: At the bottom of the funnel, where the prospects need to be nudged to make the
nal purchase, they use channels like email marketing to interact with the customer.
Now that you know ‘how’ brands use different channels, you should now understand ‘why’ a
particular channel is used at a speci c stage of the customer’s journey.

Digital Marketing Framework

You just learnt that the four main components of digital marketing are:
1. Digital content
2. Digital device
3. Digital platform

4. Digital analytics
Any content through which you reach your consumers online is digital content. It could be a blog
post, website promotion, page promotion, or digital ad. Your customers consume this content on
their digital devices, which could be a mobile, a tablet, or a computer. Digital content reaches the
devices online consumers through any number of digital platforms. These platforms could be
Facebook, Google, Instagram, LinkedIn, Twitter, and many others. Marketers decide the platforms
depending on where the potential customers are and other factors, which you will explore in the
following modules of this program.

The last and perhaps the most important component of digital marketing framework is digital
analytics. Many of the advantages that digital marketing has over traditional marketing are possible
due to analytics. Two of the advantages vis-a-vis better measurability and real-time monitoring are a
result of digital analytics. As a digital marketer, you should identify the right use of digital analytics
to be able to reach out to your potential customers more effectively.

SUMMARY
You also learnt Digital marketing offers many advantages over the traditional marketing. Some of
these include:
1. Better measurability
2. Real-time monitoring

3. Easier troubleshooting
4. Personalisation
5. Improved e ciency

Bajaj launched its Bajaj V campaign on Facebook and based on insights, it was concluded that the
campaign spurred signi cant interest in the southern parts of the country. Based on this result, Bajaj
launched videos for the same campaign in languages that are spoken in South India such as Telugu,
Malayalam, and Tamil. Similarly, a recent ad by Dove was immediately labelled as racist by the
online community. Since digital marketing offers the advantage of real-time monitoring, it was taken
down, and an apology was issued by Dove via its Twitter handle.

Just like Bajaj and Dove were able to bene t from the better measurability and real-time monitoring
that digital marketing offers, HPE was able to improve the outreach of its agship event Discover.
Traditionally, the event was limited by both space, and budget thereby limiting the event to only the
most available customers. As a result, the company missed out on a lot of opportunities. With the
incorporation of digital marketing, however, HPE was able to reach out to many of the otherwise
untapped opportunities. Today, HPE identi es the key messages from its events’ agenda, and these
messages are sent out through digital platforms such as mobiles and computers. The event was
broadcasted live on HPE’s different channels such as YouTube. Even after the event, snackable
content was created and promoted across the social media platforms, thereby increasing its online
presence.

You also learnt about the Digital Marketing Framework. For any company to establish its online
presence, it becomes very crucial to be clear about its digital marketing framework. Here are the key
components of any digital marketing framework

1. Digital content: Different tactics are used to expose your potential customers to your company’s
promotions such as blog posts, website promotions, digital ads, and more. All this falls under this
component.

2. Digital devices: The devices such as mobiles, computers, and tablets, where the users consume a
rm’s digital content are called digital devices.

3. Digital platforms: Digital platforms are places where the digital content of the company can be
consumed. This includes Facebook, YouTube, Twitter and all the online social media channels where
the rm is present.

4. Digital analytics: Digital analytics is one of the most important components of the framework. It
is important for a company to assess how well is its digital content is performing on various devices
and platforms

Additional Reading
Here are links for additional reading on the different digital marketing channels:
1. Which marketing channels should your business focus on?

2. 6 essential marketing trends for 2020

3. Multi Channel Marketing – Advantages and Challenges of Multi Channel marketing

Digital Marketing Channels- Summary assessment 1

Consider a hypothetical restaurant “Organics”. It is a newly opened food joint in Mumbai. The
restaurant wishes to use digital marketing to generate and maintain brand equity. But, given the fact
that it is a new venture, it does not wish to spend money on digital marketing.
Introduction - Digital Marketing Metrics
A wide variety of channels are available —these channels may be video-led, e.g. YouTube, search-led
e.g. Google, or even social interaction-led channels, e.g. Facebook and Twitter. But how do you
measure which channel works for your brand and which one does not? How do you determine the
success of a campaign?
The broad agenda for this session is as follows:
1. Understanding digital media metrics

2. Revenue metrics
3. Connecting the digital media metrics to the consumer funnel

Understanding Digital Media Metrics

There are three types of metrics - tra c metrics, conversion metrics and revenue metrics.

there are a number of metrics to measure the success of your digital marketing activities. These
metrics can be broadly classi ed as:

1. Performance metrics: These metrics help you determine the performance of any content
you put out, or any advertisement you run. These could either be measuring how successful
you are in enticing users, or they can measure how much the action induced is costing you.
Moreover, you as a marketer will have a very different objective in mind depending on which
part of the customer funnel you want to target with a particular ad or piece of content. So, in
 the next segment, you will see the major performance metrics across the funnel.
Performance metrics have two sub-types of tra c metrics and conversion metrics.
2. Revenue metrics: Apart from these micro level performance metrics, there are overall
revenue metrics, which you will care the most about across all your marketing activities.
These are:

CLV: Customer lifetime value, which is calculated as (Annual pro t contribution per
customer x Average no. of years of customer retention) - (Initial cost of customer
acquisition)

CAC: Customer acquisition cost which is the ratio of total marketing spend divided by the
number of acquired customers from the marketing spend
Break even: Break even is basically a point of no pro t no loss for a business.

These numbers will tell you how much pro t your business can expect from a customer, and the cost
you are incurring in acquiring her respectively. You will learn more about them in the next few
segments.

Digital marketing metrics at consumer funnel stages

Any measurement without proper context is irrelevant. Thus, it is necessary to map the measured
metrics with the consumer funnel. You will now understand how tra c and conversion metrics work
and how you can integrate them with the consumer funnel.
Awareness stage:
At the awareness stage, the main aim is to expose your brand to maximum number of relevant
prospective customers. So, the metrics to measure how your brand is doing at this stage should be
able to measure that exposure. Some of the metrics used at this stage include:
1. No. of Impressions: Impressions refer to the total number of times your content was
displayed.
2. Reach or Unique Impressions: The Reach of your content means the number of people that
are exposed to that content.
3. Impression share: If you have a really clear idea of your target group, you can also measure
the proportion or percentage of people from your target group that are exposed to your
content. For example, if 22% people from your target group see your post on Facebook, the
impression share in this case was 22%.

Consider a Facebook post by your brand. If a user sees it twice- once when shared by you on your
page and then once again when a friend shares it on their wall, the number of impressions would be
2. Now, if there were 10 such users, the number of impressions for that post would be 20.

Certain channels like Facebook also allow you to see the number of unique impressions for your
content. For example, in the case where the number of impressions were 20, the number of unique
impressions would be 10. This is also termed as Reach.
 1. Cost-per-Mille: Besides measuring the extent of exposure, you also need to keep the cost of
your marketing efforts in mind. Cost-per-Mille is one such way in which you can keep track of
this. It denotes the price of 1000 advertisement impressions on a particular webpage.

For example, if an advertisement that had 4500 impressions costs 36,000 rupees, then:

Cost-per-Mille =  360004500 x 1000

                                 = 8000 rupees
Consideration stage:

Now that people are aware of your brand, coming on to the consideration stage, the goal is to be one
of the rms in the consideration set of your prospects. The metrics at this stage, therefore, should be
able to measure the number of people that show(ed) interest in your product— by clicking on your
advertisement, visiting your site, sharing and liking your posts among others.

In tune with this, the important metrics to consider here are:  

1. No. of website visits: This basically refers to the number of visitors to your website. As
opposed to reach or impressions, this metric signi es the number of people who actually
considered your content relevant after looking at your ad- thus measuring the number of
people who would put your brand in the consideration set.
2. Bounce rate: Bounce rate is de ned as the number of sessions that end after interaction with
just one web page. That is, the number of visits where people land on one of your web pages,
but then leave without clicking on anything else on your website. These visitors are also
known as one-page visitors. Needless to say, a high bounce rate is not good for your
business.
Mathematically, if the number of total visits at your website were ‘N’, but ‘x’ visits ended after
visiting just the landing page,
Bounce rate = x/N
Please note that the same person can also have multiple visits. In this case, he will be registered as a
repeat visitor by the website analytics. For example, if out of 100 visits, a total of 45 visits ended
after the landing page, then:

Bounce rate = 45/100 x 100

                         = 45%
1. Click through rate: Click through rate is measured as the ratio of the number of times the
advertisement was clicked on to the number of times it was displayed.
For example, if an advertisement was displayed 1000 times and was clicked on, say, 600 times, then:
Click through rate = 6001000x100
                                      = 60%

      4. Engagement rate: This metric relates to the level of engagement users have with your               
 content. Engagement here can refer to Likes, comments, Shares,Retweets or a                                 
 combination of these depending on the channel being considered.

      5. Cost-Per-Click: Along with interest or consideration for your product, you also                           

   need to be clear about the cost of that engagement. Cost-per-click is one such                                 
metric. It can tell you how much each click on your ad costs you.      

Purchase stage:
At the purchase stage,  we are concerned about whether the user actually took the action you
desired- whether it be lling up a form, downloading your e-book or song, installing your application
or buying your product among others. A few metrics that can help you measure your performance in
this stage are Total number of conversions, Conversion rate, App installs, Downloads, Form lls and
Product purchases. Here,
1. Conversion rate: It basically refers to the percentage of visitors who completed a desired
goal out of the total visitors. For example, if your goal is that people buy your product and
you had 100 visitors on your website this week but only 35 of them bought your product, your
conversion rate would be 35%.
2. Cost per Action: Along with the conversion rate, you must also consider how much each
conversion or acquisition costs you. Cost per Action can tell you how much it costs you for
each desirable action or conversion.
Delight Stage:
Coming on to the very end of funnel, after the purchase stage, your main concern would be the
satisfaction of your customers. To gauge the same, the metrics you need to keep an eye on are
Referrals, social mentions and reviews.
1. Referrals: The higher the number of referrals, the more satis ed, loyal and delighted your
customer is.

2. Social mentions: Once someone has been converted into a customer, you need to track what
and whether the person is talking about you on the various digital channels. The higher the
number of positive mentions, the better it is for you.

3. Reviews: The number and nature of reviews about your product or brand can be an indicator
of the delight of your customer. Good reviews indicate a good experience and a higher
likelihood of repurchase.
Summarizing, the various metrics mapped to the different stages of the consumer funnel would look
something like this:
Understanding Revenue Metrics
the various performance metrics that can be used to measure channel performance at different
stages of the consumer funnel.

These performance metrics are at a micro level: they help you track marketing activity: for example
an ad you run on, say Facebook. But how do you measure the nancial performance of a campaign
throughout the entire funnel? Infact, how do you measure the effectiveness of your overall digital
marketing activities? Revenue metrics can help you in this case.

Revenue metrics essentially give you an idea of the return on investment (ROI) for marketing efforts
and campaigns. Every digital channel is tracked against these revenue metrics and hence it is
important to have a clear understanding of them.
Note:
1. Banner ads and display ads are similar. We have used the term banner ads in most of our
content.
2. Uber's example is illustrative and the numbers shared in the example are only for your
understanding.

The metrics, Customer Acquisition Cost and Customer Lifetime Value, help you understand the ROI -
which is the Return on Investment. ROI is essentially to understand the business returns that you
have generated for the amount that you have have invested. 

Let's understand the concept of Customer Lifetime Value more clearly. CLV  is a factor of two
components:
1. Periodic pro t from the customer

2. How long does the customer stay

The value for the rst component- periodic pro t from the customer- can be easily obtained for a
business as the pro ts are one of the most closely tracked numbers.

The value for the second component - how long a customer stays, or the lifetime of a customer - on
the other hand, is not directly available. To obtain this value, most businesses use the value of their
customer retention rate. Retention rate is the percentage of customers who stay after a period of
time - this period can be a month, a quarter, a year depending on the availability and requirement of
the relevant data. So, if a business has an annual retention rate of 75%, this means that if at the
beginning of this year, the business had 100 customers, then at the end of this year, only 75 of those
customers would still be there. 

This would also mean that 25 of those 100 people leave in one year. This is known as the churn rate
of the business. Now, how can one calculate a customer's lifetime from these values?

25% or 25 out of 100 customers will leave in 1 year

Using unitary method, this would imply that on average, each customer leaves in - 1/0.25, or 4 years.
This is the average lifetime of a customer.

For your easy reference, here are formulas for their calculation:
1. Customer Acquisition Cost (CAC) CAC = Total marketing cost for a particular time period /
Number of customers you acquire during that period
2. Customer Lifetime value (CLV) CLV = (Annual pro t contribution per customer * Average
lifetime of a customer) - Initial cost of customer acquisition
3. Average lifetime of a customer in years = 1 / customer churn rate
4. Customer churn rate = 1 - Customer retention rate

For better understanding, consider the following example:

If you spent INR 2,50,000 on a marketing campaign and acquired 100 new customers during that
period, your CAC would be:

CAC = Marketing spends/New Customers acquired

        = 2,50,000/100
        = 2,500

Now, you also  know from past data that the average retention rate for your business is 25%, with
average annual revenue and spends being INR 30,000 and INR 27,600 respectively; i.e. average
revenue each customer generates is 30,000 and the additional marketing spends on each customer
throughout the year are 27,600. So, to calculate CLV, we will rst calculate the churn rate:

Churn rate= 1 - retention rate

                      = (1 - 0.25)

                      = 75%
Next, we need to calculate the average lifetime of a customer in years:

Average lifetime = 1/Churn rate

 = 1 / 75%
 = 100 / 75

 = 4/3 years

Finally, we can calculate the CLV as:

CLV= (Annual pro t contribution per customer * Average no. of years of customer retention) - Initial
cost of customer acquisition

     = ((30000-27600)*(4/3))- 2500
     = (2400*4/3)-2500
     = 3200 - 2500

     = 700
Hence, the CAC for your business is INR 2500 and the CLV is INR 700.

Another metric that rms generally use is Break even. Break even is basically a point of no pro t no
loss for a business. That is, at break even,

Costs incurred = Revenue earned

For example, if a company incurs costs of 25,000 rupees while acquiring a customer and 1,000
rupees every time they serve the customer. They also earn a revenue of 5,000 rupees on average
every time a customer makes a purchase. So, in order to calculate the required number of purchases
by such a user in order to achieve break-even,

25000 + 1000*X = 5000*X

4000*X = 25000
X= 25000/4000
X= 6.25 purchases.

But, since 6.25 purchases do not make any sense, we can round it off to the next integer, that is, 7
purchases.
SUMMARY
That was quite a ride on the digital metric roller coaster! And now, I’m sure, you’ll be able to analyse
your digital channels skilfully. So, let’s recap what you learned in this session. Firstly, the customer
acquisition cost is the average total marketing cost you bear to acquire one customer. Secondly,
customer lifetime value is the total pro tability of your average customer across the duration of his
or her involvement with you. Thirdly, you learned about the various parameters that come into play
at different stages of the funnel. On top, you have tra c, bounce rate, and session duration. Mid-
funnel, there are repeat visitors, social mentions, and speci c page visits. The bottom of the funnel is
where app installs, form lls, downloads, and product purchases come in. And lastly, you need to
keep an eye on experience and referrals during the delight stage.

Additional Reading
To understand the various digital marketing metrics that you came across in this session, here is
some additional reading material for reference.
Digital marketing metrics
15 Digital Marketing Metrics to Focus On for Business Growth
Customer acquisition cost

The Ultimate Guide to Calculating, Understanding, and Improving CAC in 2020

Customer lifetime value
What is Customer Lifetime Value? (And How to Calculate it)

Customer Lifetime Value: What is it and How to Calculate