By measuring and tracking key metrics, you can determine your marketing return on investment and link your efforts to bottom-line goals such as income and revenue. Following are some key marketing metrics that matter:
Leads Generated: Keeping track of the number of leads generated and the source of those leads helps you allocate marketing resources effectively.
Leads Converted: Knowing the percentage of leads that actually turn into customers enables you to home in on target prospects.
Customer Acquisition Cost: The total cost associated with persuading a consumer to buy your product or service, including research and advertising outlays, may surprise you.
Average Dollars per Transaction: Brought down to the individual customer level, this hard metric helps you assess pricing and price your products/services appropriately.
Churn Rate: Churn rate refers to the number of customers who discontinue buying or using your service compared with the total.
Retention Rate: The opposite of churn, retention measures the percentage of customers who stay with you or return and make repeat purchases. Bolstering customer retention is less costly than going after new prospects.
RFM (Recency, Frequency, Monetary): RFM analysis identifies top customers by examining how recently, how often and how much customers spend with you. RFM analysis is based on the 80/20 rule. For example, 80% of your business is derived from 20% of your customers.