What are the right measurable marketing metrics to focus on that deliver revenue-generating results?
The concept of performance marketing points to a different focus from traditional marketing agencies, where “likes” and “shares” are the order of the day. With performance marketing, measurable metrics help define the actual outcome of the marketing activities — not the marketing itself.
Are you looking at impressions for an ad or video?
Social media likes and shares?
These are traditional KPIs.
Did you ever stop to consider it’s possible none have actually measured the sales that resulted from all this marketing activity? Try performance marketing.
These measures include sales revenue and growth, cost per lead, conversion rates, lifetime value of a customer, return on marketing spend and more.
With advanced tracking mechanisms, marketers are now able to target their marketing more effectively by accelerating activities, which are proving more valuable.
Why Measurable Results Matter In Performance Marketing
Today’s marketers have to be flexible and ready to shift at a moment’s notice. This means keeping a constant watch on customer-centric metrics, which can drive real change through an organization’s marketing efforts.
When you work with a performance marketing agency like Valve+Meter, you get a strategy and direction where tests are deployed to find the most repeatable and scalable opportunities.
The end goal is to grow your marketing programs to a the point when the agency generally only receives payment when a specific action has been completed, such as a lead, click or sale.
This allows the agency greater freedom to try tactics slightly outside your comfort zone knowing you can shift quickly if the results you need are not there.
Here are 13 measurable marketing metrics you should start following now:
Get more return on your marketing spend.
The Measurable Marketing Metrics That Define Success
Measuring marketing activities against the sales they generate can be a painful activity for some marketers. You will likely find only a small percentage of your marketing drives the majority of your sales and leads — online or offline. However, this KPI is critical for the long-term health of your organization and is essential to weed out underperforming marketing activities.
Strategic plans require a strong understanding of sales growth and trajectory for everything from inventory requirements to adequate staffing levels. Measuring your marketing through the lens of your sales growth is yet another way to add a layer of accountability for marketers and marketing agencies.
Keeping the top of your sales funnel well-stocked with leads is one of the first tenets of successful performance marketing. When your sales funnel is well-defined, having a strong pipeline of leads helps your organization stay healthy.
Cost Per Lead (CPL)
One of the key measurable marketing metrics to determine campaign success is identifying your cost per lead. Some marketers believe every tactic can be successful if you throw enough money at it. Avoid this mindset by actively measuring the cost per lead and ensuring underperforming marketing channels are pruned or revised. This helps keep the overall cost per lead in line with expectations and what the business can bear.
Low-value customers are customers who make a minimum purchase and don’t return, and who may even tell friends and family about a bad experience. A focus on netting high-value customers makes you more likely to focus activities around nurturing and improving the overall customer journey — which is smart marketing.
Lifetime Value (LTV)
Similar to customer value, a key metric to review the effectiveness of your marketing program is the lifetime value of your customers. If your average customer lifetime value drops, it is an indicator some part of your marketing and sales program is failing to engage customers and show them ongoing value.
Return on Marketing Investment (ROMI)
What is the true return on your marketing investment? First, take your total revenue generated divided by your total marketing investment and get your return on marketing investment. Keeping this KPI in mind helps marketers focus around expanding the most profitable activities and reduce those which drain resources.
Return on Ad Spend (ROAS)
Marketers have a longtime love/hate relationship with advertising. Many marketers believe traditional advertising drives brand awareness and ongoing interest in your products or services. Other marketers have a difficult time quantifying those activities back to hard sales dollars. Create a digital sales funnel with measurable marketing metrics which track each step of the purchasing journey. It allows you to more closely track the return on your advertising dollars.
Lead to Customer Ratio
How many sales are you closing for the number of leads generated? Marketers look at this metric to determine if there’s a problem with a particular step of the sales journey. Valve+Meter can help you review each step carefully to smooth out any roadblocks or friction points in order to maximize the benefit you receive from your marketing dollars.
Traffic, Leads and Conversion Rates
Looking at traffic, leads and conversion rates by platform and/or web page allows for microtargeting of friction points. You can more accurately dial in your tactics, and complete A/B testing on specific CTAs and site architecture.
Marketing Cost per Conversion or Acquisition (MCPA)
Depending on your business model, you may need to measure the cost per conversion or acquisition to get a true picture of the value of your marketing activities. Determine whether you want to use first-touch, last-touch or linear or decay models of attribution.
Sales Team Response Time
Even though this number solely rests in the hands of your sales team, it’s still one of the most important measurable marketing metrics. If your sales team is not able to quickly jump on leads delivered through your marketing efforts, it’s important to know why. A flawless lead delivery system works together to open the floodgates to more leads when needed, and tightens the yoke when the sales team is unable to follow up in a timely manner.
Email Marketing Performance
Email marketing performance is a complex structure including delivery rate, unsubscribes, open rates, click-through rates, final conversions and social actions such as forwards or shares. Looking at these numbers over a period of time allows you to get the averages you should expect for your business so you can identify outliers — in either direction. Negative outliers should be scanned just as carefully as those with positive results.
Measurable Marketing Metrics Maximize ROI
When you consider this range of marketing activities as a whole, it may seem overwhelming.
Nothing says you have to implement each of these measurable marketing metrics immediately, but it does provide you with a working list of metrics to help grow your business.
The best part of performance marketing is you’re able to analyze each step of your marketing and customer journey and quickly change, scale or scrap tactics based on their true business impact.
When you provide your team with access to these actionable, it becomes more feasible to shift tactics in a structured and meaningful way.
Marketing as a whole is continually changing and evolving, and the team of marketing experts at Valve+Meter Performance Marketing understand how to leverage marketing strategies to drive true business value.
Our data-driven marketing plans provide our business partners with the flexibility they need to quickly adapt to changing customer needs and market conditions.
Start attracting more customers to your business.