Progress occurs at your company in many ways and marketing metrics exist for a reason. Metrics gives you the ability to track your progress and measure your success and also it helps us improve the tactics we are using to help grow our business.Read more about BusinessIt is also important to give you a few examples of marketing metrics you may want to measure and track.
Customer Acquisition Cost (CAC)
Add up all your marketing expenses for a given period and divide it by the number of new customers. This is important to know because if you spend too much to acquire customers, you can go out of business.
Conversion Rate
This is the total number of people who took the requested action over the total number of visitors and by comparing conversion rates, you can easily determine winners and losers, and keep testing new versions against your winners.
Return on Investment (ROI)
This is the gain or loss on an investment relative to the amount invested and it will help you determine whether a particular marketing campaign made money or not.
Sales Revenue
There are a lot of broad contributors to this number, but it can give you a good indication if your marketing is working as a whole.Some of the benefits include:
Helps Spot Weaknesses
One of the main benefits of measuring your performance is to learn where you are struggling. When you have a master budget, performing a monthly variance analysis will let you see where your results are not meeting your projections and you might figure out that your projections were too optimistic or that your performance isn’t living up to its potential. This might help you identify that you are overspending, using marketing tools that aren’t generating adequate sales, taking on too much debt or managing cash flow improperly, leading to more debt service. Measurements help you identify your weaknesses and let you put controls in place or take other remedies to strengthen your business.Sign up to the Connect Nigeria daily newsletter2. Motivates EmployeesWhen employees see they are contributing to the success of the company, there is a feeling of high job satisfaction. If they see their department is lagging behind, they might be motivated to work harder and also setting goals for your employees, measuring the results and communicating them to your staff on a regular basis helps motivate workers who are doing well or struggling. This motivation goes beyond encouraging them to work longer hours but it motivates them to look at how they are performing their jobs, discuss ways to improve and come up with solutions to improve productivity.
Save Money
Most business owners who waste money on marketing do it because they have ABSOLUTELY NO IDEA what works and instead, throw money at different tactics with little to no results, and this is where the use of marketing metrics comes in. Metrics can help you understand how, where, and when you should be spending your marketing budget, so you don’t frivolously spend your marketing dollars.
Know What Works
Measuring brings clarity to what is working and what is not. The numbers don’t lie, because when you track the right metrics, you will know whether specific marketing campaigns were effective and without the numbers, you’ll just be guessing.
Helps You Focus on Strengths
Tracking your production, sales, marketing, labor use and spending helps you determine which areas of your business are performing well and should get more attention. For example, you might find sales of your low-price, low-margin item you think provides incremental income has the potential to become a significant part of your revenue. A particular magazine in which you’re advertising or a specific social media site might be driving most of your customer traffic or you might have a geographic area that is performing better than others, alerting you to take a close look to find out why.Measurement is all about improvement! Your business growth will be much faster when you track the right metrics and use the information to your advantage.Featured image source: Businessstudyn0tes.comGot a suggestion? Contact us: editor@connectnigeria.com
