In today’s data-driven world, there are few things more important than marketing metrics.
To understand your business and where it’s headed, however, it’s essential to choose the right marketing metrics and see them all in context.
These seven marketing metrics will help you really contextualize the health of your enterprise:
Lifetime Customer Value
Although it’s the last thing you’ll figure out, LTV deserves to be mentioned first. It depicts the average total value of a customer across the entire customer lifecycle. This is especially valuable for B2B enterprises with a business model sustained through ongoing subscriptions.
Cost of Acquisition
COA is the total cost that your organization absorbs in its demand generation efforts per customer acquisition. Your cost of acquisition must always remain lower than your lifetime customer value. If you segment COA according to buyer persona, you can learn who your most lucrative customers are.
Cost Per Lead
Cost per lead is one of the most powerful metrics to look at when determining if an individual marketing program has been successful. It complements cost of acquisition, above, because you can use it to narrow down your lead sources to the most cost-efficient options.
Average Deal Size
Average deal size can generally only be understood within a relatively short period of time, such as a year or quarter. Average deal size is most useful for companies that do not rely on subscriptions or other fixed-price agreements and those that are moving in the direction of more lucrative solutions over time.
While conversion rates are always valuable, funnel conversions are especially important for digital marketers who need to manage a complex sales funnel. To capture these metrics, you track the total number of people who’ve entered your funnel, reached the middle of the funnel, and reached the bottom of the funnel – helping pinpoint any areas where the funnel may be weak.
Lead velocity is a lesser-known metric that refers to the total number of sales-qualified leads you are acquiring across a given period of time. For example, if you get 100 SQLs in May and 120 in June, then your lead velocity is up 20% – showing how well your efforts are scaling.
Cross-Sell and Upsell Rate
Cross-sells and upsells represent your ability to add more value with existing customers. Like the initial sale, cross-sells and upsells are largely dependent on consistent marketing efforts that include targeted emails, so they can be evaluated as part of your marketing strategy as a whole.
Over time, marketing metrics considered most important have changed. With these seven in mind, you can get a total picture of your marketing program and where it is headed.