Digital marketing has changed overnight. Brands are now focusing on other key marketing metrics than they had planned to at the beginning of the year. Market expansion and brand ambassadorship are no longer critical issues. They are replaced by the effort to keep existing customers and find new ones in order to have a positive cash flow.
Even you had some plans in place and a list of metrics (some of them more for vanity) to focus on. However, it is time to be more practical than ever. In other words, your new key marketing metrics must be those that equal in sales, returning customers and a high ROI for your marketing spending.
What Kind of Key Marketing Metrics Matter Now?
One of the vanity metrics that must go from your list is the number of likes – on any social media platform. Likes don’t mean sales. It’s great to have them, but what you need is the next step taken by the followers: joining your mailing list and making their first purchase.
What really matters is how many visitors your website has, how long they spend browsing it and what action they take. Equally important is the effort you invest in attracting customers and how long they are likely to remain your customers.
These being said, these are the key marketing metrics to pay close attention to and act as soon as you see negative changes:
1. Customer Acquisition Cost (CAC)
The customer acquisition cost is one of the key marketing metrics for businesses in general. You don’t want to invest AUD 1,000 in lead generation and nurturing for someone who makes a one-time purchase of AUD 500. In the end you’ve lost AUD 500.
Having a good grasp on the CAC value helps you direct resources where they are most likely to yield results and limit your spending on lead groups whose profile is associated with a high CAC value.
2. Qualified Leads
More qualified leads means a lower CAC. This proves that key marketing metrics are interconnected and you cannot focus on one and ignore another. Getting qualified leads means that you have a good grasp on your customer persona. This helps you create personalised messages for each of them.
But it also means working harder to grow your average number if qualified leads. Instead of spending money on ads and other marketing strategies aimed at a large, amorphous group of people, you focus your efforts on smaller groups. Though your initial lead generation numbers may appear low, you will see your qualified leads percentage go up.
This is one of the key marketing metrics that does two things: it shows you how much your customers trust your business and it shows you how many new customers you are likely to gain.
A large number of referrals, especially during this difficult period, means that you have good products, you treat your customers right and they are confident to recommend your business to their family and friends.
4. Customer Retention
You are doing a good job with the conversion rate, the numbers look good and new sales come in. But do you get a second or third purchase from the same customers? Many marketing specialists have demonstrated time and time again how customer acquisition is more expensive than customer retention.
Thus, make sure that a new customer is continually nurtured and encouraged to leave reviews, repeat purchases and build an emotional rapport with your brand. These are the cornerstones of customer loyalty.
5. Customer Lifetime Value (CLV)
Many marketers have trouble with calculating customer lifetime value (CLV). This free Excel template will make things simple for you. Now, you have no reason to leave this metric to chance.
Why does CLV matter? First of all, you will be able to group your customers in groups ranging from most loyal to least likely to stay loyal to your business. Second of all, it allows you to identify loyal customers who are slipping down and invest in personalised campaigns to retain them. Lastly, together with customer retention this is one of the key marketing metrics that give you immediate signals regarding customer sentiment, as well as the ability to be proactive in preventing customer abandonment.