10 Metrics You Can't Ignore to Track Marketing Success (Part 1)

Hello marketers,?

I know we’re all busy people, we have copy to write, campaigns to push live and clients to make ‘viral’ (wink,wink). So, let's cut to the chase – measuring marketing success can be a pain in the backside, can't it? I'm here to share some hard-earned wisdom on tracking your marketing efforts effectively.

In this two-part series, I’ll discuss ten essential metrics that could revolutionise your marketing strategy. Let's kick things off with the first five:

1. Conversion Rate

Ah, the holy grail of digital marketing. Your conversion rate is essentially the percentage of visitors who take a desired action on your site. It could be making a purchase, signing up for a newsletter, or downloading a whitepaper – whatever aligns with your goals.?

Conversion rate is the pulse of your digital marketing efforts. A high conversion rate means your marketing is resonating with your audience. They're not just window shopping; they're taking action.

To improve your conversion rate, think about your user experience. Is your website easy to navigate? Is your call-to-action clear and compelling? Remember, sometimes less is more. Don't overwhelm your visitors with options – guide them gently towards the action you want them to take.?

2. Customer Acquisition Cost (CAC)?

This one's a bit of a mouthful but stick with me. Your CAC is the total cost of acquiring a new customer, including all your marketing and sales expenses. It's like the price tag on each new customer you bring in.

Why is this important? Well, if you're spending more to acquire a customer than they're worth to your business, you're in trouble. It's like buying ￡20 notes for ￡30 each – doesn't make much sense, does it??

To calculate your CAC, add up all your marketing and sales costs for a specific period, then divide by the number of new customers you acquired in that time. The tricky part is bringing that number down. Look at your different marketing channels – which ones are bringing in customers most efficiently? That's where you might want to focus your efforts.

3. Customer Lifetime Value (CLV)

Now we're getting to the good stuff. Your CLV is the total amount of money a customer is expected to spend with your business throughout your entire relationship. It's like looking into a crystal ball to see the future value of each customer.

Why does this matter? It helps you understand how much you can afford to spend on acquiring and retaining customers. If your average customer sticks around for years and makes regular purchases, you can justify spending more to bring them on board initially.?

Calculating CLV can get a bit complex, but a simple formula is: (Average purchase value x Purchase frequency x Customer lifespan).??

Play around with these numbers and see what you get – you might be surprised!

4. Return on Ad Spend (ROAS)??

If you're running paid advertising campaigns, ROAS should be your best friend. It tells you how much revenue you're generating for every pound spent on advertising. It's like a report card for your ad campaigns.

Why should you care? Because it helps you understand which of your ad campaigns are actually making you money. A ROAS of 2:1 means you're making ￡2 for every ￡1 spent on ads – not bad, but there's probably room for improvement.

To calculate ROAS, divide the revenue generated from an ad campaign by the cost of that campaign. Simple, right? The tricky part is improving it. Look at your ad targeting, your ad copy, your landing pages – there's always room for optimisation.?

5. Email Open Rate

Last but not least for today, let's talk about email open rates. This is the percentage of recipients who actually open your emails. It might seem basic, but it's a crucial metric in email marketing.?

Why? Because if people aren't opening your emails, they're certainly not reading them or clicking on your links. A low open rate might mean your subject lines aren't engaging enough, or maybe you're sending too many emails and people are tuning out.?

The average open rate varies by industry, but generally, anything above 20% is considered good. To improve your open rates, try personalising your subject lines, segmenting your email list, and experimenting with different send times. Remember, relevance is key – make sure your emails provide value to the recipient.

Phew! That's a lot to take in, isn't it? But don't worry, we're just getting started. Next week, we'll dive into five more metrics that will help you take your marketing to the next level.

Until next time, keep measuring, keep improving, and remember – behind every great marketing strategy is a whole lot of data.?

Cheers,

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