For many business owners, marketing can seem like a frivolous exercise, not worth spending large portions of the budget on. From the perspective of a business owner, this is understandable as tangible results can be unpredictable. However, marketing
is a key element to the success of your business.
In this day and age where information is out in the world, your ability to market correctly and get measurable results is important. Marketing is a strange bedfellow in business as its successfulness is difficult to measure
… but not impossible. That’s why understanding and implementing marketing metrics
What are Marketing Metrics?
In a nutshell, marketing metrics
are the statistics used by business owners to measure the effectiveness
of their marketing campaigns. Each business is different and these metrics will depend on the size of your business and the type of marketing campaign you have implemented. Understanding these metrics helps you evaluate your return on investment by allowing you to compare the amount of money spent to the output of the results. Depending on your choice of marketing platform your marketing metrics could be measured in anything from the number of page hits to the total number of foot traffic for the month.
3 Important Marketing Metrics to Consider
- Customer Acquisition Costs
Your CAC is your total number of sales and marketing costs. In order to measure
you need to add up all your costs from marketing to salaries, and assess whether your number of new customers balances out. It’s best to pick a time frame to measure this and assess your return on investment in each time period.
- Time on Return
Is the amount of time spent on bringing in these new customers worth the income generated through them? Every six months, do an assessment of how long it takes for your marketing to produce results. This will let you know if your current marketing plan is working and what needs to be changed.
- Customer Retention Rate
Once you have your customers keeping them in important. It can be difficult to measure customer retention
, but implementing a subscription process or loyalty service gives you an idea of the number of customers who keep coming back.
Getting the Right Metrics Measurements
Ensuring that you will be guaranteed measurable marketing metrics
is important when choosing a marketing agency to build your business. When you employ W5 Partners
to build your marketing strategy
you can rest assured that we understand all elements of marketing metrics and we work to make sure you have a measurable return on investment. We value our relationship with you and will make sure that everything we do is going to bring in the investment you need. Call W5 partners
now to find out more.
By Mzama Xala & Lisa Alton