5 Critical Marketing Metrics to Follow
Metrics are the base for any kind of a successful marketing strategy. However, many companies fail in using most of such vital metrics to evaluate failure or success. Often, companies concentrate mainly on how many new leads are generated, thereby ignoring most of the complex aspects which can truly assess the success of a strategy.
Marketers have always been in a moving cycle of constant flux and change. Since there are many strategies and marketing options now, marketers and companies must stay a step ahead of their competitors. To have a proper marketing strategy, it is important for you to understand crucial metrics.
1) Return on Investment
It is a very common formula and the easiest to comprehend. ROI is a tool of measurement used to check the value and effectiveness of an investment. It depicts the loss or gain of an investment and does so by measuring and comparing the returns reviewed on an investment. It is widely used with other techniques to develop critical business strategies depending on the obtained metrics.
2) Cost per Action
CPA is also known as Pay per Action. It is one formula which measures the money business has spent in attaining a conversion. It is also used while developing a marketing strategy which lets the advertisers pay for particular actions like filling a form or making a purchase. CPA campaigns are less risky since costs are gathered only when the desired action has happened.
3) Return on Advertising Spend
ROAS is the tool which measures the profits you have made out of advertisements. It is a very useful metric in evaluating the way marketing campaigns have performed since it measures how much money you have got back on every buck you have spent for advertising. If ROI gives you an overview, this one gives a detailed performance of your ads.
4) Customer Lifetime Value
The CLV metric is used for determining the economic value your customer can bring into your business and not just at the current moment but for the whole time, they remain a customer. This one considers all aspects starting from initial interactions to the final sales with the customers. It is vital in determining if there is good value for long-term marketing decisions.
5) Customer Retention Rate
This is a metric which calculates the loyalty of your customers. Getting new customers can cost you more compared to retaining the present ones. This metric will tell you how dedicated the consumer is to your business, and later you can develop your business strategies to retain them. If you make strategies to retain your customers by encouraging your loyal consumers to stay along with your business for a long time, you will only be increasing your revenue.
These are the five most crucial metrics that you always need to keep a track of if you want to stay in the online competition of businesses.