ImportantMarketing Matrices From The POV of Company
Sometimesin marketing, it's a good idea to take a step back and reflect on your overallstrategy. Are you getting what you want and expect from your campaigns? Are youapproaching your goals wisely? The only way to know for sure whether yourefforts are working is to measure the impact. That's where marketing metricscome in.
Marketingmetrics are data points that are used by firms to display success across allmarketing platforms. Using metrics efficiently means you can overcome the bigchallenge of unpredictability. Rather than doing hit and trial method andhoping to get more sales you can use insights from metrics to plan yourmarketing strategy or optimize the current one.
But thedata is coming from every direction and it is tough to distinguish betweenbasic key performing indexes (KPI's). So what should you do? Should youkeep on pouring money into a marketing campaign, spend more time on oneplatform or completely close another platform?
Well,to identify the key metrics that you should focus on we have given majormetrics that needs your attention:
Conversionrate
So yourcampaign is up; it's optimized, it follows all the best practices, but is itmaking people take action?
Itdoesn't matter how many visitors you are getting on your website unless thevisitors are taking actions they are useless. Therefore, it is important tomeasure your conversation rate to see if your efforts are paying off ornot.
Yourconversion rate is the percentage of visitors to your website that takesaction. It can be anything depending on your marketing goals; the following aresome type of conversation:
How tofind the conversation rate?
Conversationrate = (Number of conversation ÷ Number of visitors) X 100
Measuringand optimizing according to conversation rate is like using a landmark when youare lost so that you know where you're headed in general, but it's stilldifficult to map a route that'll help you get to your destination safely.
You canuse Google Analytics to measure your conversation rate
Usingthe Admin > Goals section of Google Analytics; you can set up conversiontracking for your website.
Customerlifetime value
Customerlifetime value (CLV) is essentially how much money a customer spends on yourbusiness across all of their interactions with you. It is hard to predict howlong a customer will stick around, but the CLV is a good representation basedon the existing numbers. Simply put, it's a reflection of what your team isdoing right. A high CLV is good for your business because it costs less to keepan existing customer.
How tofind CLV
Customerlifetime value = Average purchase value per year X Average customer lifespan inyears
It canbe tough to track all the incoming and outgoing values, which is why manycompanies don't even bother to calculate them at all but intelligent marketersuse a CRM to crunch some numbers automatically, so they can spend less timedoing math and more time focusing on growing their business.
Marketingpercentage of customer acquisition costs
To knowhow much you have spent attain a new customer is important to evaluatemarketing performance, but it is not the only metric which is important,percentage of customer acquisition cost (M%-CAC) is also crucial. It shows howeffective the performance your marketing team is.'
How tocalculate marketing percentage of customer acquisition costs?
M% CAC= (Total marketing cost during a period ÷ Total sales spend during that time) X100
Adecrease in M%-CAC means that the costs of your marketing department have gonedown, while an increase isn't necessarily bad—it might indicate that yourcompany is shifting to a more inbound model because what Marketing is doing isworking and it doesn't need to spend as much on Sales.
Returnon investment
This isthe most important marketing metrics a company can ever track as ROI is theprofit or loss generated according to the capital invested in marketing. Ifyour ROI is less than the amount you've spent on a campaign, you're losingmoney. It doesn't matter what kind of marketing strategy you are deployingbecause, in the end, your ROI will determine the future.
Thereare many ways to calculate return on investment but the most popular methodis
ROI ={(Total sales generated by campaign – All money spent on the campaign) ÷ Allthe money spent on campaign} X 100
Amarketer can calculate the ROI of different marketing campaigns with the helpof cost Analysis function
BottomLine
It isclear that to optimize and enhance the profitability of your company you needto measure the above-mentioned metrics. You can use analytic tools and CRM totake a deeper understanding of the data in front of you.
