Marketing metrics: which ones really measure the success of my business?

Many companies leveraged their results and increased the value of their brands based on tactics involving the distribution of content on the web, the use of methodologies such as the sales funnel and constant activity on social networks, and all of this is part of the reality of marketing. .

The big question about digital marketing is its empiricism, that is, it is made of successes and mistakes. Every professional in the field, from gurus to beginners, has already implemented strategies of little value, or that yielded results well below expectations.

And how is this analysis of success done? Through data, or rather, through marketing metrics. Metrics are the “signals” needed to assess how well structured the actions and planning of digital marketing activities were. And do you know which of the metrics really measure the success of your business? Keep reading and find out!

ROI (RETURN ON INVESTMENT)

ROI is not just a marketing KPI, it is a KPI for virtually any investment a company makes .

When it comes to investing in something, there is no secret: the company makes the investment looking for some kind of return. This is more than natural, it is what leads companies to bet on marketing!

The ROI will measure the company's real profit after carrying out marketing actions that required investments.

It is essential to analyze which strategies generate results and which are presenting the best cost-benefit ratio. With the ROI it is possible to measure the company's profit based on the investment made in a certain period of time.

The calculation of return on investment is simple, just apply the following formula:

ROI = (Revenue earned – amount invested) / amount invested

CAC (COST PER CUSTOMER ACQUISITION)

Have you ever heard how much cheaper it is to retain a customer than to acquire a new one? This analysis has already become well known in the business world and is based on the Customer Acquisition Cost (CAC).

The logic of this marketing metric is quite simple. The CAC is defined by the total costs of all marketing actions during a certain amount of time, based on how many new customers the company has conquered.

The math is also simple. Check it out:

CAC = Total marketing costs / number of customers acquired

The metric serves to analyze the effectiveness of your company's marketing and the campaigns developed by the sector. The higher the cost to acquire a customer, the further away from the ideal are the marketing actions.

Unlike ROI, CAC is a digital marketing metric that should have low numbers.

CPL (COST PER LEAD )

Digital marketing metrics are not just about measuring closed deals and financial returns. It is even possible to analyze the cost of each lead , which are not customers, but opportunities.

The CPL will measure the conversion success of a campaign, based on the cost of running it.

With this metric in hand, it is possible to perform an important analysis on the value of the actions proposed by the marketing sector and which of them managed to generate good volumes of new opportunities.

LTV (LIFETIME VALUE)

Also known as Customer Lifetime, this metric is applied in enterprise marketing and sales.

It serves to measure the lifetime of a customer with the company. With this, it is possible to understand a little more about the consumption behavior of your target audience.

Does he just make a purchase? Do you remain an active and constant customer? Do you make frequent returns to the company? All of this is factored into LTV.

Experts recommend that the LTV be three times higher than the CAC. This means that customers remain active and their acquisition value has been “paid”.

LTV also applies to analyzing the company's profit potential over each consumer. To perform the LTV calculations, simply perform the following operation:

LTV = average monthly ticket x average retention time for each customer

AVERAGE TICKET

If your company intends to calculate LTV, it will also need to rely on this other marketing metric, which is the average ticket.

The average ticket is used to calculate the amount spent by customers with your company. It can even be applied to analyze which salespeople achieve the best sales results.

Calculating the ticket is important because, with the calculation of the CAC, it becomes possible to identify whether the company is, in fact, making profits or losses, with or without the arrival of new customers.

To measure the average ticket, just divide the revenue obtained within a period of time by the number of customers who made purchases in the same period.

CONVERSION RATE

Digital marketing was made to convert, assist in the customer acquisition process. If conversion rates are low, this is an indication that it is time to review actions and look for new ways to impact the target audience.

Low conversion rates depend on an analysis of context, including factors such as:

1. Marketing product that was used (blog post, video, e-book, etc);
2. Language used;
3. Selected target audience.

That last point is very important. As much as the company knows who buys from it, it is necessary to understand if there was an alignment between the offer and the intended public. For this reason, it is fundamental to think about the development of personas when carrying out marketing actions.

TRAFFIC SOURCES

Digital marketing calls for a plurality of platforms. A company's digital presence is built on different channels, and this means that it is necessary to analyze the results obtained in each of them.

The analysis of traffic sources generates intelligence for your next actions, making it possible to focus on the source that really brings return to your company.

These are some of the most important marketing metrics that really impact your business. Pay close attention to them and remember to carry out constant measurements to analyze the evolution of your company's marketing efficiency.