Hi this is Abul Hussain!
Today, I to want to talk to you about why I believe Digital Marketers often look at the wrong metrics.
If you follow any of the digital marketing gurus or study courses, you will see a lot of talk about CPM, CPC, Click-Through Rates and all other fancy sounding metrics.
However, what is most important for a business owner really is money. Money that is going to come in and the profit that they take home.
Therefore, the main metric that we should be focusing on when advising our clients is ROI [Return On Investment], which is usually quite straightforward to calculate for service-based businesses.
Marketers often look at ROI in a very binary manner. We only look at how much we spent on ads and how much have we brought in in terms of sales and revenue
However, from a Business Owner’s perspective what they really need to look at is Net Profit.
A business will usually have more expenses associated with a transaction, such as cost of service or product fulfilment, administrative costs, and taxes.
What is more important than Return On Ad Spend is Net Profit – this is what your client gets to keep.
More than Digital Marketers, I believe we should be positioning ourselves as Business Growth Experts, who are like a silent partner to of our clients.
To close off, please do not get too bogged down with digital marketing metrics when reporting progress to clients.
You will be a lot more valuable if you can demonstrate commercial acumen. Commercial acumen is something that usually comes from experience and not books or YouTube videos.
Learn the metrics of business growth, so that you can provide a much better service and be retained at a much higher rate by your clients.