If you’re reading this, it means you care about marketing and want to do it well. You probably know that every business needs to track its key performance indicators ( KPIs) if they want to grow. There are hundreds of marketing KPIs out there.
Which ones do you need to track? What will help you achieve your goals? Which digital marketing metrics are the most important for your business?
If you’re feeling a little confused, you’re not alone. Keeping tabs on your company’s performance indicators can be challenging—primarily if you work in another department like accounting or HR and don’t have constant access to that information.
But never fear! We’ve got you covered with the best marketing efforts every business needs to succeed.
1. Customer Acquisition
The first KPIs on our list are customer acquisition metrics. These will help you understand how many new customers you acquire and from which channels.
There are several customer acquisition metrics to track, including:
- Number of new customers
- Number of returning customers
- Number of first-time purchases
- Value of each purchase
Each of these metrics gives you a better understanding of your customer base and how to improve conversion rates. You can use this data to calculate lifetime value (LTV) and break out your customer acquisition costs, which will help you understand how much you need to spend to acquire new customers.
2. Engagement and Retention
If you’re trying to grow a business but aren’t retaining customers, you won’t see much of a return on your investment. You need to know what’s keeping customers coming back and what’s driving them away.
Engagement and retention metrics help you understand how loyal your customers are and what you can do to keep them around. This data can also help you understand how much profit you leave on the table.
These metrics can be measured in two ways:
Frequency: How often are customers coming back?
Revenue: How much are customers spending? Frequency metrics will tell you how often customers are returning. Engagement metrics will tell you the value of each customer.
3. Productivity
Productivity metrics will tell you how productive your marketing strategy is.
There are a few key metrics to track, including:
- Time to first purchase
- Time to customer retention
- Customer lifetime value
- Continuous customer value
Time to first purchase tells you how long a new customer takes to make a purchase. This is a great way to understand if your sales funnel is working. If the time to first purchase is too long, it’s an indicator that you need to make adjustments.
Time to customer retention tells you how long it takes customers to return. Customer lifetime value tells you the average value of a customer over their lifetime. Continuous customer value tells you the value of a customer each year.
If you want to know more about search engine marketing and other key performance indicators that can increase marketing success, check out this article.
Which Marketing KPIs Matter Most?
By now, you’re likely noticing a pattern. Almost all of these metrics are related to revenue and profit. This is because the most crucial marketing KPIs are the ones that help you understand how much money you’re making.
This will enable you to continue growing your company and expanding your marketing and sales efforts over time.
