Marketing metrics: what metrics are important to track

In this article, we will talk about how to get the most out of advertising and other promotion methods, attract new customers and expand the boundaries of influence.

What are marketing metrics and what are they for?

Marketing metrics are the top priorities to watch if you're growing and promoting your business. These criteria show the success of the advertising campaign.

These include:

1. The number of times your ad was viewed;
2. Number of clicks on the link;
3. The ratio of the cost of promotion to the price of the subscriber/lead;
4. Coverage figure.

Depending on the tools you use. For example, in email marketing, you need to pay attention to the open rate of emails and clicks on buttons. When launching an advertising and information campaign, consider reach, clicks, subscriptions, or purchases (depending on your goals). Such indicators are called metrics.

There is also a KPI, a parameter that allows you to assess the level of achievement of the desired values. In other words, a plan with specific goals:

• Attracting 1000 subscribers to a page on a social network;
• 100 targeted calls to the office in 31 days.

TOP 10 marketing indicators

ROI (return on investment)

The most effective way to understand how effective the advertising campaigns you are launching are. If the marketing strategy does not work, it needs to be adjusted.

LTV (Customer Lifetime Value)

Retaining existing customers is something that needs to be paid attention to. This approach pays off better than constantly working on the influx of new guests or partners. To find out the specific values, use the equation below:

LTV = average profit from the 1st sale x average number of sales per month x average customer retention time in months

You can use a special calculator.

CAC (Cost of Customer Acquisition)

Example: you spent 1,000$ on advertising, 200 people came to you, 20 of whom bought your product or service. This means that the cost was 50$. 

You can also calculate the price of the attracted client for a long period of time: six months or even a year to estimate all the costs. Remember that we are talking about a "paying" person – the one who brought money to your company.

Customer acquisition cost is the most important indicator that further affects the profitability of sales.

CPL (Cost of Lead Acquisition)

In other words, potential consumers (CPL stands for cost per lead) are visitors to your website, communities, and tasting participants – those people who have become acquainted with the products, but have not yet purchased them.

CR (Target Action Conversion)

Conversion rate is an index of desired actions performed by users:

• Subscribed to the newsletter;
• Left the data;
• We agreed to a free analysis;
• We became subscribers of social networks.

How to calculate: take the total number of people and divide by how many target actions they have done — get the % of the coefficient.

NPS (Loyalty Index)

This data demonstrates how well you are doing your job. Getting the values is quite simple: ask users to rate your company from 1 to 10, and then subtract critics (those who gave below 6 points) from the number of promoters.

ARPU (Average Revenue Per User)

The APRU metric allows you to see the average revenue per customer per month. Based on the data obtained, you can predict profits and manage numbers.

The formula is: APRU = total revenue per period/number of people per period.

Both customers and leads are counted. If your product has a free trial period, then you count those who have used it, but have not yet paid for it.

Profit

This is a key indicator for the company - if revenue grows, then everything is fine. Of course, in addition to marketing tools, it is important to take into account such parameters as the product line, service, sometimes the convenience of the business location, the use of your mobile application, and interaction with the team. The amount of money earned is affected by everything in the aggregate.

Number of clients

Not only new ones, but those who return not for the first time - this indicates the high quality of services/goods. Of course, customer growth often means redesigning internal processes, so weigh your hand to avoid a cash gap or a situation where you simply can't hire more people.

CTR (click-through rate)

The percentage of online impressions and clicks on an ad. Example: the site was shown 10 times, went to it twice. CTR was 20%.

Key findings

Marketing effectiveness is an important parameter in business, without which it is impossible to promote your services and products. Your team should be constantly working not only to attract customers, but also to increase conversions, customer retention, and return on investment.

Assessing the effectiveness of marketing activities: answers to important questions

What is the key metric for a marketer?

It is difficult to answer this question unequivocally, because it all depends on the goal: for example, attracting a lead and a customer are not the same thing. First of all, you should focus on what task you set. At the same time, remember that globally, the amount of money earned is the most important.

How is the effectiveness of marketing activities assessed?

A small plan will help you with this:

1. Think over a landmark, set a task;
2. Allocate a budget;
3. Analyze the end result impartially.

For example, you should understand that the cost of a subscriber on social networks of 2$-5$ is the reality of modern days. Compare all the data, calculate the amount of money earned and you will be able to evaluate the effectiveness.