We as social beings generally prefer to keep a track of our daily activities so that we have an idea about our present status and the nearing future based on physical, emotional, professional and various other parameters. The more aware we are the better will be our evaluation of where we are and where are we headed to. Similarly, a business needs to keep a check on its various activities and note down their SWOT [Strengths, Weaknesses, Opportunities, and Threats] seriously for efficient and effective functioning and output. And, analytics specifically pertaining to marketing is known as marketing metrics.
What are marketing metrics? Why are they important for the marketers?
The various metrics related to the marketing division of a business organization is known as the marketing metrics. They primarily consists of the calculations of the effectiveness or non-effectiveness of various measures that the marketers take to generate meaningful marketing campaigns for the brand they work for and the company expects them to leave no stone unturned. Some of the examples of such metrics are- CTR [Click through Rate], CLV [Customer Lifetime Value], Website impressions, CAC [Customer Acquisition Cost] etc. Insights from these metrics helps a company to devise sensible marketing strategies for lucrative outcomes.
1. Quantity and quality of database
Ample amount of customer database is one of the most crucial things for a marketer to consider because the absence of customer information means no campaign. There will be no substantial base to work upon if one misses out on leveraging the in-house data. It would be beneficial to have an appended set of data which have been meticulously segmented under specific criteria like technology users’ database, geo location based list etc. which are technically termed as targeted database.
2. Time taken for lead conversion
The first hurdle you want to get through as a marketer is lead generation because genuine leads will pave your way to much needed conversions in the days ahead. Essentially, this marketing metric will give you the analysis of how effective you were as a marketer and how engaged were your prospects with your brand. Did they resonate with you? How soon did they agree with you? A greater proportion of these queries can be answered through this metric. Make sure to calculate them diligently as it portrays the pace at which you are growing your leads.
3. Cross platform analytics
The marketing budget nowadays have a particular amount dedicated just to the multiple channels/platforms through which the prospects or the customers are approached and pitched. And, this activity does take in the major part of the assigned budget. However, they also hold a notable scope for a larger ROI and spending some time and money on them is usually worth it. Therefore, Cross platform analytics is a vital marketing metric to keep an account your brands performance across the diverse marketing platforms.
4. Rate of conversion from MQL to SQL
You would come across MQLs after you take the necessary customer engagement techniques to convince your target audience and turn them into leads. However, the marketing metric that holds a higher intensity is the time in which MQL (Marketing Qualified Lead) converts into SQL (Sales Qualified Lead). Why? Even if generating leads is tough and worth appreciating, a business needs to see that the leads don’t stagnant at being just marketing qualified but move further towards being sales qualified because the latter has the closest potential to turn into an opportunity for revenue conversion.
5. Cost of opportunities closed
When SQLs transform into opportunities the marketing executives would put in their best to close it because it would feel bitter to let go off the highly valued leads at such a critical moment of conversion. If they’re able to proceed successfully then well and good and if not, they got to figure out the weak points. Keeping an eye on this marketing metric would let you get a hang of how much goes into finally acquiring a customer monetarily. The resultant information will back you with worthwhile data to analyze the way in which your investments were utilized.
6. Customer Retention metrics
A marketer’s job does not finish with the win rates over the opportunities closed as he/she requires to retain them for a longer period of time and see that the customers are proactively updated to keep them interested towards the brand. Maintaining loyalty with the customer base is an integral component of a business pre or post marketing. It is meant to be in a constant motion even after sales have taken place. Watch out for this marketing metric for worthwhile journey ahead.
7. Scopes for cross sell or upsell
Once you close your leads as your customers it does give you a space to cross sell or upsell because you already have their trust. You got to keep heed of the metric that shows you the length at which you can bring in additional revenue by pitching products or services similar to what your customers have already purchased from you or put across an advanced version of the purchased inventory.
8.Customer Lifetime Value (CVL)
The CVL is the marketing metric that gives you an idea about the net amount of returns your business can make through the customer base that have been consistent with your brand and the bond with them over business is strong. There is an innate feeling that these loyal customers will stick to you for the reasons they’ve been holding on with your brand and such solid metrics does influence your decisions and strategies in a conspicuous way.
It is very convenient to point out what all marketing metrics have the higher propensity to affect the growth and revenue of your business but doing this task practically is an uphill climb. However, there are various analytical tools and stuffs like Big Data to back you while figuring these out and your business acumen with a good level of steadfastness matters too. You can refer to the article put up by LinkedIn for a much elaborated details on the importance of these metrics.