With today’s technology, you can measure almost everything. Sound judgement used to be the ultimate test. Supplement years of experience and lessons learned with a series of marketing metrics to help boost your marketing ROI and grow your business.
Here are our thoughts on the most important metrics to track, organized by topic. It is clearly not one-size-fits-all, so select those measures that drive results and ignore those that are simply nice to know (even if it is easy to obtain the data).
This is a big one for every company. If nobody knows who you are and what you do, then it will be a challenge to grow.
Few of us can afford to advertise on mass media these days, so the best metric for awareness is impressions across all relevant channels including your website, Google (or Bing) search engine, and social media platforms: Facebook, Instagram, X (formerly Twitter), TikTok, and YouTube. More eyeballs are better and reach + frequency move the needle.
First page keyword rankings on search engines are another solid metric since most folks will not go beyond the first page in search results. If organic search is critical for your business and your rankings are low, you may want to pay attention to your search engine optimization efforts to improve these numbers.
For some businesses, social media plays a big part in awareness. So, look at engagement metrics such as likes, shares, favorites, and comments on your posts and content. Those numbers are far more important than simply followers.
A healthy pipeline of new customers is vital to generating new revenue. There are several metrics here that are predictive as well as financial.
Most companies keep track of leads in the sales funnel, as well as the quality of those leads. A marketing qualified lead is good, as it shows that your marketing campaigns are generating interest. A sales qualified lead is even better, as your sellers confirm that the marketing lead meets the criteria for becoming a client. The conversion rate through the sales funnel is critical, as is the close rate for converting a sales qualified lead into a customer.
On the financial side of the equation is cost-per-lead and cost-per-new account. The lower the costs, the harder your spend is working for you. Importantly, not all customers are created equal. So, your estimate of customer lifetime value (average annual value times average lifespan as a customer, divided by the cost to acquire that customer) is the ultimate measure of economic success.
It is far less expensive to keep an existing client than it is to win a new one. And if that existing client buys more from you (adds more items, expands your retail shelf space, increases the number of slots for your brand on their promotion calendar, etc.), that is huge!
While retention is influenced by customer service and your relationship account manager, it is one of the most important metrics. And it is straightforward to calculate the net impact of a modest price concession to keep a large customer (especially if you can extend the term of their contract), versus the cost of winning enough new clients to replace that lost revenue.
Some companies also track customer satisfaction as a predictor of churn rates. The happier the client, the less likely they are to stop doing business with you. One metric is Net Promoter Score, where the likelihood of recommending your business to others is tracked over time.
There are a bunch of metrics that are most appropriate for online businesses—like click-through rates, time spent, bounce rates, value-per-action, and more.
While gathering the data is important, it can be helpful to automate as much of it as possible. That way, you can spend more time on the trends and implications coming from your metrics. And this is where your business judgement and that of your agency partner, help you make more informed, and more timely decisions. And that matters—a lot!
At Damen Jackson, we thrive on helping clients sort through and interpret metrics. We are here to be your partner, your conscience, your extended team. And we will always bring the conversation back to strategy. How do we maximize the market opportunity and optimize return on investment?
Importantly, we are smart, pragmatic, focused, and energetic. We get assignments done well, and quickly.
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