Happy Tuesday, everyone!?
If you have an online business that has a customer acquisition flow or are planning to launch one, here are the key metrics and performance measures I believe you should be looking at in terms of direct Revenues and Cost metrics - will cover Tracking/Monitoring and NPS/Customer Feedback on a following post!
- First, develop your funnel metrics: Visitors, Workflow started, Workflow Completed, Payment Processed and so on and measure your unique (and multiple attempts) users on each of these steps.
- Second, track the conversion rates for payment processes and other critical flows. This tells you how well your site or app turns visitors into paying customers and will help you prioritise where to focus your efforts and understand where you have the highest churn rate.
- Third, segment your data into different timelines, demographics, products and all breakdown that make sense on your funnel so you can gather a sense of how your metrics compare cross product. Always useful to compare against competitors too and with Google Lighthouse or Google Trends for example you can compare search volume and page speed with relevant players.
- Finally, Customer Lifetime Value (CLV): Understand the total revenue you can expect from a customer over their entire relationship with your business. CLV helps you gauge the long-term value of acquiring new customers and can guide your budget allocation for marketing and acquisition efforts.
- Customer Acquisition Cost (CAC): Measure how much it costs to acquire a new customer. This includes all marketing and sales expenses divided by the number of new customers acquired.
- Data Infrastructure and Cloud costs: make sure you are using optimised structures variable with volume that are coherent with your traffic numbers so you don’t pay more than you need.
- External Tools and softwares: always review what third-party services you are using and weigh the cost and benefits for those, cutting unused tools or downgrading plans when it makes sense.
- Always assess what you should be outsourcing and what you should be building in-house - even if it’s not part of your core. If you are very dependent on a third-party solution both in terms of general costs or high switching costs, consider if you should be incorporating that into your roadmap and always reassess this as you expand on volume and size.?
By keeping tabs on these metrics, you should be able to refine your customer acquisition flow, enhance your marketing strategies, and ultimately drive better business results!?
As always super happy to hear any feedback and further ideas on what works best for people out there!?
