Which Marketing Metrics Are the Most Important to Track?
With a wide range of marketing metrics being monitored at any given time, it’s important to know which marketing metrics are the most important to track. Ideally, marketing metrics should give marketers information that show which activities and marketing channels are most successful and where marketing budgets can be spent more efficiently. These metrics should also provide marketers data that will help them make decisions about who to target, how to target them, and how well that targeting is working at converting into sales.
Some marketing metrics will be useful for the entire marketing department to consider. Most marketing departments will need to track the following general marketing metrics:
- Customer lifetime value (LTV): A customer’s lifetime value to the company is calculated based on past purchases, purchase frequency, and average customer lifespan. Tracking customer LTV can help marketing departments make predictions about future ROI and customer engagement.
- Return on investment (ROI): Tracking ROI, or the amount of profit or revenue growth that can be attributed to marketing activities, gives companies insight into the success of the marketing function.
- Cost per lead: Cost per lead refers to the average cost for generating a new lead, which gives marketing teams information about how cost-effective their campaigns and activities are.
- Lead-to-customer conversion rate: The lead-to-customer conversion rate is the percentage of leads that resulted in sales. This metric can help marketing departments increase activities that generate the types of leads that most successfully convert to sales.
Digital marketing metrics to track
Deciding what marketing metrics to track depends in part on the activities marketing teams undertake. Because most marketing departments rely heavily on digital marketing, they will also need to track some of these channel-specific metrics as well:
- Email: Marketers will track subscribers, click-through and open rates, and conversions from email marketing communications in order to determine which content resonates best with recipients.
- Social media: Social media statistics can be deceiving. While marketers might be tempted to focus on vanity statistics like followers and likes, it’s actually more important to track reach, engagement, conversions, and follower demographics.
- Paid advertising: Marketers will track impressions, clicks, cost-per-click, and the click-through rate as a percentage. These will help marketers understand which ads are performing best across different channels.
- Website: Marketers will need to track website traffic in addition to bounce rates, conversions, and new versus returning visitors. Marketers should also track the landing pages that result in the most conversions or actions.
- SEO: Marketers will need to keep on top of the most successful keywords that drive traffic to the website, where the website ranks for certain keywords and site referrals.
Each marketer will likely have their own set of marketing metrics that they monitor regularly. Overall, the entire marketing team should track a robust combination of marketing metrics that inform their day-to-day activities as well as their long-term marketing strategy and planning.