Important Marketing Matrices From The POV of the Company

Important Marketing Matrices From The POV of Company
Important Marketing Matrices From The POV of Company

Important Marketing Matrices From The POV of the Company

Sometimes in marketing, it's a good idea to take a step back and reflect on your overall strategy. Are you getting what you want and expect from your campaigns?

Are you approaching your goals wisely? The only way to know for sure whether your efforts are working is to measure the impact. That's where marketing metrics come in.

Marketing metrics are data points that are used by firms to display success across all marketing platforms. Using metrics efficiently means you can overcome the big challenge of unpredictability.

Rather than doing hit and trial method and hoping to get more sales, you can use insights from metrics to plan your marketing strategy or optimize the current one. 

But the data is coming from every direction and it is tough to distinguish between basic key performing indexes (KPIs).  So what should you do? Should you keep on pouring money into a marketing campaign, spend more time on one platform, or completely close another platform? 

Well, to identify the key metrics that you should focus on we have given major metrics that need your attention:

Conversion rate

So your campaign is up; it's optimized, and it follows all the best practices but is making people take action?

It doesn't matter how many visitors you are getting on your website unless the visitors are taking action they are useless. Therefore, it is important to measure your conversation rate to see if your efforts are paying off or not. 

Your conversion rate is the percentage of visitors to your website that takes action. It can be anything depending on your marketing goals; the following are some type of conversation:

  • Signing up for a newsletter

  • Submitting a form 

  • Making a purchase

  • Downloading a content asset like e-book

How to find the conversation rate?

Conversation rate = (Number of conversation ÷ Number of visitors) X 100

Measuring and optimizing according to conversation rate is like using a landmark when you are lost so that you know where you're headed in general, but it's still difficult to map a route that'll help you get to your destination safely. 

You can use Google Analytics to measure your conversation rate

Using the Admin > Goals section of Google Analytics; you can set up conversion tracking for your website.

Customer lifetime value

Customer lifetime value (CLV) is essentially how much money a customer spends on your business across all of their interactions with you. It is hard to predict how long a customer will stick around, but the CLV is a good representation based on the existing numbers.

Simply put, it's a reflection of what your team is doing right. A high CLV is good for your business because it costs less to keep an existing customer.

Important Marketing Matrices From The POV of Company

How to find CLV

Customer lifetime value = Average purchase value per year X Average customer lifespan in years

It can be tough to track all the incoming and outgoing values, which is why many companies don't even bother to calculate them at all intelligent marketers use a CRM to crunch some numbers automatically, so they can spend less time doing math and more time focusing on growing their business.

Marketing percentage of customer acquisition costs

Knowing how much you have spent to attain a new customer is important to evaluate marketing performance, but it is not the only metric that is important, the percentage of customer acquisition cost (M%-CAC) is also crucial. It shows how effective the performance of your marketing team is.'

How to calculate the marketing percentage of customer acquisition costs? 

M% CAC= (Total marketing cost during a period ÷ Total sales spend during that time) X100

A decrease in M%-CAC means that the costs of your marketing department have gone down, while an increase isn't necessarily bad—it might indicate that your company is shifting to a more inbound model because what Marketing is doing is working and it doesn't need to spend as much on Sales.

Return on investment

This is the most important marketing metric a company can ever track as ROI is the profit or loss generated according to the capital invested in marketing.

If your ROI is less than the amount you've spent on a campaign, you're losing money. It doesn't matter what kind of marketing strategy you are deploying because, in the end, your ROI will determine the future. 

There are many ways to calculate return on investment but the most popular methods 

ROI ={(Total sales generated by campaign – All money spent on the campaign) ÷ Allthe money spent on campaign} X 100

A marketer can calculate the ROI of different marketing campaigns with the help of cost Analysis function


It is clear that to optimize and enhance the profitability of your company you need to measure the above-mentioned metrics. You can use analytic tools and CRM to take a deeper understanding of the data in front of you.

Important Marketing Matrices From The POV of Company
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