4 Analytics You NEED to Know in Marketing
Analytics is the practice of measuring, managing and analysing performance to maximize effectiveness and optimize return on investment (ROI).
In non-corporate speak, it’s the numbers behind the sales. The math behind the profit. The figures behind the six-figure income (or, at least, that’s the aim).
Understanding your marketing analytics allows you to put your time and effort where it’s going to have the most impact. Analytics helps you save time and money, and keep your business heading in the right direction.
But what analytics do you need to pay attention to most? Here’s a breakdown of some of the most common metrics you’ll need to measure, as well as what they’re good for.
Funnel Conversion Rates
When you create a funnel in Convertri, these analytics are one of the main metrics you’ll be paying attention to. Measuring the views and interactions at each stage of your sales funnel clues you in to weak points in your strategy.
As the goal of the funnel is to move your prospects through to the end of it, keeping an eye on your conversions at every stage lets you understand and monitor how effective your efforts are in prompting leads to complete goals.
Brand awareness
Measuring brand awareness can be tricky: how are you supposed to measure if someone knows you exist? Fortunately, some clever people have come up with ways to do it. For example, you can get a holistic overview of brand awareness by taking a look at:
- Traffic
- Brand (i.e. your company name) search volume
- Social media engagement (mentions, follows and the like)
- Revenue or leads increase
- Video metrics
For that last one, we’re thinking specifically with regards to YouTube insights if you include video on your pages or in your social media – where are your views coming from? Do many people discover you organically, and if so, using what keywords?
Lifetime value of a customer (LTV)
How much does each one of your successful conversions make you in profit? It’s an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth.
For example, selling a recurring membership at $9.99 per month is going to be more valuable than a one-time sale of $24.99, simply because the recurring membership is more likely to keep profit coming in for longer. As a consequence, the membership conversion is more valuable, and you should aim to acquire more of those because they have a higher LTV.
Customer acquisition cost (CAC)
We can’t go after every campaign, every channel, or every market segment in order to acquire new customers. Marketers must decide where it’s best to allocate budgets and marketing efforts – that’s where CAC comes in. Customer Acquisition Cost (CAC) is the total cost of marketing and sales to acquire a customer – it’s the ad spend to lure them in, the website hosting to show them the funnel, and the production costs of the product you’re selling them, divided by the number of customers to reveal how much each sale cost you.
CAC is calculated by dividing the total cost of marketing and sales by the number of customers acquired over a specific period of time. For example, if a company spent £100 on marketing and sales in a year and acquired 100 customers in the same year, their CAC is £1.00.
Measuring these analytics can sometimes be a headache, but tools such as Google Analytics and Convertri’s in-built Analytics dashboard can be your best friend in this endeavour.
Once you start measuring analytics you can be sure of how much spend versus how much energy you’re putting into acquiring those customers, and you can start really focusing your efforts into growing your business.
Got any more need-to-know-metrics up your sleeve? Let us know in the comments!
