Marketing Metrics You Must Know & Why
Cost Per Visitor (CPV)
The amount you pay to get one visitor to your website or landing page.
Why It Matters: Understanding CPV helps you see how much you’re spending to attract traffic and whether your investment in driving visitors is efficient or not.
Click Through Rate (CTR)
The percentage of people who click on a link, ad, or email out of the total who viewed it.
Why It Matters: A high CTR means your content is compelling and relevant to your audience, which can improve the success of your campaigns.
Lead Generation Rate (Lead Gen Rate)
The percentage of visitors who take an action that qualifies them as a lead, such as filling out a form or subscribing.
Why It Matters: Knowing your lead gen rate shows how well your marketing efforts are converting visitors into potential customers.
Missed Call Rate
The percentage of inbound calls that go unanswered.
Why It Matters: Missed calls can mean lost opportunities and revenue. Monitoring this rate can help you improve customer service and ensure potential leads are not lost.
Cost Per Lead (CPL)
The amount you spend to acquire a new lead.
Why It Matters: CPL helps you assess how cost-effective your marketing is in generating leads. It also helps compare the cost of different campaigns.
Closing Rate
The percentage of leads or opportunities that turn into actual sales.
Why It Matters: This metric shows how effective your sales process is. A high closing rate suggests your sales team is doing a good job turning leads into paying customers.
Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer, including marketing and sales expenses.
Why It Matters: CAC helps businesses understand the investment required to gain a new customer. It is essential for measuring profitability and the efficiency of marketing and sales strategies.
Customer Lifetime Value (CLV)
The total revenue a business can expect to earn from a single customer over their relationship with the company.
Why It Matters: Knowing your CLV helps you determine how much you can afford to spend on acquiring customers. It also helps shape long-term strategies for customer retention and growth.
Review Rate
The percentage of customers who leave a review after making a purchase or using a service.
Why It Matters: Positive reviews can boost credibility and attract new customers. Tracking this rate shows how satisfied customers are and helps improve reputation management.
Retention Rate
The percentage of customers who continue to do business with your company over a given period.
Why It Matters: A high retention rate indicates customer loyalty, which often leads to more predictable revenue and reduced costs, as retaining customers is usually cheaper than acquiring new ones.
Return On Investment (ROI)
The percentage return on the amount of money invested in a campaign or project.
Why It Matters: ROI helps measure the profitability of your marketing efforts. If your ROI is high, it means your marketing is delivering good value for your spend.
