7 Marketing Metrics: The Complete Guide with Examples
Posted: Tue Dec 03, 2024 8:50 am
Clasp Blog 7 Marketing Metrics: The Complete Guide with Examples
The key to automating business processes is the use of marketing metrics. Marketing metrics are numbers that reflect the current state of a business and the effectiveness of its activities. Usually, their calculation is simple, sometimes even intuitive. However, the interpretation and ways to use these metrics may not be so obvious.
In this article, we will tell you which metrics you should track, their benefits and practical difficulties in using them, and how to effectively combine metrics for your business.
What Are Metrics in Marketing
Marketing metrics are quantitative indicators that show oman whatsapp number data 5 million the effectiveness of strategies, campaigns or even specific tools for corporate promotion. They are used to diagnose and analyze the company's activities. These indicators allow you to quickly make the right management decisions and adapt to changing market situations, competition and consumer sentiment.
From the definition of metrics in marketing, it is clear that they are used to optimize tactics and strategies of business promotion. With a clear set of quantitative indicators, you can experiment and identify the best ways for the development of the company and avoid all the pitfalls and obstacles.
To determine the marketing metrics that will give you the most benefit, you should base your decision on the following factors:
company business model;
characteristics of the target audience;
level of competition in the market;
product life cycle;
communication channels.
7 Marketing Metrics You Should Track
Every business should build its own analytics system using the best marketing metrics that perfectly describe its activities. However, there are also universal metrics that will be useful for any business. Let's take a closer look at examples of marketing metrics.
1. Marketing Return on Investment (ROI)
This key performance indicator will tell you how well your current marketing campaign is performing compared to previous ones. ROI is often compared to industry benchmarks and the performance indicators of your closest competitors to assess your company's position in the market.
ROI formula
For example, you spent $100,000 to advertise a new car model. The campaign generated $1.5 million in sales with a 20% margin. Your profitability will be:
ROI
2. Conversion Rate (CR)
This is a general purpose marketing metric. A sale, signup, phone call, etc., can be considered a conversion. The higher this level, the more accurately you understand the needs of your target audience. The CR will also be informative compared to previous periods, competitor performance, or industry benchmarks.
Formula CR
For example, in the last month, your website attracted 50 thousand visitors and 3,500 of them signed up for your newsletter. The conversion rate is equal to:
CR
3. Customer Acquisition Cost (CPA)
Your list of marketing metrics should also include cost indicators. By comparing the average investment with the potential profit, you can understand the financial success of the campaign. If the overall result is negative, you need to change your approach to advertising.
CPA formula
For example, you spent $2,000 on social media activity that brought 98 new users to your SaaS service. This means your CPA is:
CPA
4. Customer Value Over Time
This indicator should also be included in your marketing metrics template to evaluate financial performance. You can use it to compare it to customer acquisition cost. By analyzing the components of CLV and understanding how you can influence them, you can increase your company's revenue and profits.
CLV formula
Continuing with the previous example, let's add that the average subscription period for a SaaS service is 14 months, the payment is monthly, and the fee is $9.99. The customer value over time will be equal to:
CLV
This figure is higher than the cost per acquisition, which is $20.41, so the marketing campaign can be considered a success.
5. Click-Through Rate (CTR)
This is another easy-to-interpret marketing metric. The higher the score, the more accurately your online advertising is personalized and the more attractive your message. You can easily find benchmarks published in industry studies and available in public analytics systems such as Google Analytics. It is also important to compare CTR with conversion: if your ad is much more effective than your commercial offer, it is likely misleading.
The key to automating business processes is the use of marketing metrics. Marketing metrics are numbers that reflect the current state of a business and the effectiveness of its activities. Usually, their calculation is simple, sometimes even intuitive. However, the interpretation and ways to use these metrics may not be so obvious.
In this article, we will tell you which metrics you should track, their benefits and practical difficulties in using them, and how to effectively combine metrics for your business.
What Are Metrics in Marketing
Marketing metrics are quantitative indicators that show oman whatsapp number data 5 million the effectiveness of strategies, campaigns or even specific tools for corporate promotion. They are used to diagnose and analyze the company's activities. These indicators allow you to quickly make the right management decisions and adapt to changing market situations, competition and consumer sentiment.
From the definition of metrics in marketing, it is clear that they are used to optimize tactics and strategies of business promotion. With a clear set of quantitative indicators, you can experiment and identify the best ways for the development of the company and avoid all the pitfalls and obstacles.
To determine the marketing metrics that will give you the most benefit, you should base your decision on the following factors:
company business model;
characteristics of the target audience;
level of competition in the market;
product life cycle;
communication channels.
7 Marketing Metrics You Should Track
Every business should build its own analytics system using the best marketing metrics that perfectly describe its activities. However, there are also universal metrics that will be useful for any business. Let's take a closer look at examples of marketing metrics.
1. Marketing Return on Investment (ROI)
This key performance indicator will tell you how well your current marketing campaign is performing compared to previous ones. ROI is often compared to industry benchmarks and the performance indicators of your closest competitors to assess your company's position in the market.
ROI formula
For example, you spent $100,000 to advertise a new car model. The campaign generated $1.5 million in sales with a 20% margin. Your profitability will be:
ROI
2. Conversion Rate (CR)
This is a general purpose marketing metric. A sale, signup, phone call, etc., can be considered a conversion. The higher this level, the more accurately you understand the needs of your target audience. The CR will also be informative compared to previous periods, competitor performance, or industry benchmarks.
Formula CR
For example, in the last month, your website attracted 50 thousand visitors and 3,500 of them signed up for your newsletter. The conversion rate is equal to:
CR
3. Customer Acquisition Cost (CPA)
Your list of marketing metrics should also include cost indicators. By comparing the average investment with the potential profit, you can understand the financial success of the campaign. If the overall result is negative, you need to change your approach to advertising.
CPA formula
For example, you spent $2,000 on social media activity that brought 98 new users to your SaaS service. This means your CPA is:
CPA
4. Customer Value Over Time
This indicator should also be included in your marketing metrics template to evaluate financial performance. You can use it to compare it to customer acquisition cost. By analyzing the components of CLV and understanding how you can influence them, you can increase your company's revenue and profits.
CLV formula
Continuing with the previous example, let's add that the average subscription period for a SaaS service is 14 months, the payment is monthly, and the fee is $9.99. The customer value over time will be equal to:
CLV
This figure is higher than the cost per acquisition, which is $20.41, so the marketing campaign can be considered a success.
5. Click-Through Rate (CTR)
This is another easy-to-interpret marketing metric. The higher the score, the more accurately your online advertising is personalized and the more attractive your message. You can easily find benchmarks published in industry studies and available in public analytics systems such as Google Analytics. It is also important to compare CTR with conversion: if your ad is much more effective than your commercial offer, it is likely misleading.