A true marketer is always looking to improve marketing by either brainstorming new strategies or checking their marketing metrics.
The key is to ensure that the marketing is appropriately aligned to bring about the desired results.
The question is, how do you successfully monitor your marketing metrics? What are the critical areas that are a must to be tracked to encourage growth?
You have clicked the right post! We will guide you by highlighting the seven crucial marketing metrics that every marketer must track. Let’s get to it.
What are Marketing Metrics?
A marketing metric is used to assess operations and expose the operation’s ability to track key performance indicators.
Marketing metrics are an essential aspect of any operation. If marketing metrics are not properly executed, there would be no solid display of the possible success of the marketing strategy.
When measuring campaigns or operations, look at the current and use it to pen future success; this will highlight possible ideas and strategies that can be implemented.
Marketers benefit from marketing metrics because it helps them understand how to hit targets and achieve goals for the business. Some important marks for any marketing team are new customers, sales, lead generation, and engagement.
Marketing metrics pave the way for setting budgets annually and creating accurate overall long-term measurement and operation planning.
The Importance of Marketing Metrics
Marketing is essential to every company because it ensures and secures the development and maintenance of sustainable relationships with their audience.
Building business relationships with current and new clients is vital and only flourishes when an ongoing strategy (marketing) is employed.
The truth is, marketing is the heart of sales – it captures, educates, and convinces, then converts.
For every operation to be successful, especially sustainable, the following marketing metrics must be employed.
Definition: As it relates to sales, leads refer to the contact with a probable client.
This client is termed as a “prospect.” The aim is for the sales team to quickly convert all leads to establish and maintain a reasonable conversion rate.
Your leads generally are the individuals that show great interest in your company’s product or service.
Therefore, in monitoring the individuals who show great interest in your company, you would be successfully tracking the company’s goal.
There are three main types of marketing leads. These include
Information Qualified Lead (Cold Lead)
Definition: this is the start of the buyer cycle. At this stage of the journey, the onus is on your company to provide needed information requested by a potential client with excellent customer service.
Encouraging the exchange of critical details like name and email address in a discreet manner is essential.
Marketing Qualified Lead
Definition: This step advances to the middle portion of the sales funnel. This is when the potential client continues to express interest in your company.
At this middle staging, potential clients tend to relate to any problems they are having in the hopes of the company taking the necessary steps to rectify them.
Sales Qualified Lead
Definition: The step that stands at the bottom of the sales funnel and is heavily characterized by the potential client’s readiness to advance to making a purchase.
Monitoring the lead phase is a critical aspect of having a successful marketing metric.
Impressions (Ad View)
Definition: your company’s digital marketing impression is a part of the metric used to measure the amount views and engagements on specific content. These contents usually are digital posts, web pages, and advertisements.
So, in simple terms, your impressions are the number of times your company’s ad or content is displayed on a screen.
For example, tracking your impressions means clicking your campaign section and paying attention to the charts showing the visual display of your ad’s performance.
If an Ad pop’s on a client’s screen 500 times, that means your impressions for that Ad is 500.
Conversion Rate: My Favorite Marketing Metric
Definition: This exposes the tactics used to encourage your customer to do specific move-in marketing. The essence of conversion is the graduation of the browse step of the client to product or service purchaser.
Managing conversion means more sales, consistent clients, less client loss, and a sure return on your company’s advertisement investment.
Paying attention to the company’s conversion marketing metric makes the need of reaching new prospects to meet goals and generate sales volume less.
Cost Per Lead (CPL)
This carefully measures the cost-effectiveness of your company’s marketing campaigns in relation to appropriating new leads by your sales team.
The CPL of your company is critical in providing the requisite data to calculate your return on marketing investment.
Cost Per Acquisition (CPA)
This key marketing metric seeks to measure the financial metric. The financial metric measures the revenue impact of the marketing operations.
Cost Per Acquisition is generally used in the following paid marketing mediums – Affiliate, display, social media, content marketing, and PPC.
The tracking of CPA for online businesses includes utilizing UTM parameters to gain link codes, the exportation of PPC campaign data from Adwords, inclusion of lead forms on form fields, use of promotional codes, and CRM system implementation.
Return on Ad Spend (ROAS)
The ROAS is an important marketing metric to supervise. It gauges the volume of revenue your company earns for every dollar it spends on the advertisement.
This marketing metric monitors the money spent on digital advertising for your company and marks it as its investment, thus tracking its returns.
Return on ad spend is critical to calculating contribution margin which shows the impact of marketing on a company’s bottom line.
Lifetime Value (CLV/CLTV)
This metric displays the total revenue your company can anticipate per customer from the business relationship.
Calculating this metric means considering the customer revenue value and effectively comparing the number calculated to the predicted company customer lifecycle.
Final Thoughts on Marketing Metrics
Companies spend much time ensuring that sales are generated by monitoring day-to-day money that comes in daily.
Though this is good for your company, spending the energy instead to manage and pay attention to these seven marketing metrics (leads, impressions, conversion, cost per lead, cost per Acquisition, return on AD spend, lifetime value) is even more important as this is where the true vision, mission and goal of the company will be effectively and sustainably attained.