The Top 5 Most Important Metrics for Marketers
The Top 5 Metrics Every Marketer Should Consider:
With so much data available to us, it may be a hard task to decide what marketing metrics to present to your boss at the next company general meeting. What you have to keep in mind is that what matters to your audience is having the overall picture of the marketing department performance. In this article, we’ll show you the top 5 marketing metrics we believe are the most comprehensive to present to the head of the company.
· Customer Acquisition Cost (CAC) - The CAC includes all the marketing cost incurred to acquire a new customer. However, to get an overall picture, the CAC has to be compared to the CLV -the Customer Lifetime Value- to see if the return on your investment in the acquisition of one customer is positive.
· Customer Lifetime Value (CLV) - The CLV is the present value of the projected future cash flows generated from the relationship with one customer. Even though this metric is not easy to get, once you have it, you have a good idea whether your company will be profitable or not.
· Conversion rates (CVR) - The CVR includes any rate that compares one step to another in the marketing sales funnel. This metric will tell you how well you are doing in terms of converting visitors into paying customers. Comparing your conversion rates to a benchmark will tell you how well you are doing and which step in the sales funnel can be improved.
· Number of Unique Visitors - is the number of new visitors who access your website. This number combined with the conversion rates should give you a good idea of how fast your company is gaining market shares. Even though it is important to acquire new visitors, it is much more important to retain the ones you acquire. It is estimated that it cost around five times more to acquire a customer than to than to retain one. From this statement stems our fifth most important marketing metric is: the rate of returning visitors.
· Rate of returning visitors - It is one thing to acquire a customer, but keeping them is what can prove difficult. This is a really important metric, especially for early stages companies. In fact, this rate is so important that many companies are willing to pay click farms (companies that create fake traffic) to goose up their numbers to look better for employees and investors.