Marketing gimmicks start with a robust strategy, selection of right metrics, and a clear vision to ensure if your route to success is appropriate or not. In this article at Social Media Today, Aleh Barysevich explains that metric selection and goal setting go hand in hand.
An Out-of-the-Box Strategy
The marketing metrics are quantifiable variables that can measure and track campaign performance. It clarifies if your strategy is working in favor of your business or going wrong. Here are some of the key marketing metrics you must track to improve performance.
One of the challenging yet crucial tasks of marketing is to find a lead. To track leads, observe the overall points generated in a month and the marketing channels used for it. You can use a dedicated customer relationship management tool to automate the process.
These are leads that have some involvement in your product, but they are not interested in it. Calculate it by dividing qualified leads generated with the total number of leads and multiply the outcome with a hundred.
(Qualified leads / Total leads) x 100 = Qualified lead rate
Return on Marketing Investment
Return on marketing investment (RoMI) is similar to the return on investment (RoI). It helps you identify the revenue your marketing campaign is generating in comparison with the cost of running a campaign.
The formula to calculate it is- ROMI = (income from marketing – cost of goods – marketing expenditures) / marketing expenditures) * 100.
Referrals help you boost brand awareness and increase your customer base. The formula to calculate the rate of references is: Total number of customers/number of referrals = Referral rate.
You might consider it as one of the vaguest metrics, but it is valuable when you compare the campaign with a competitor. To assess brand awareness, observe the range of online mentions generated by your competition.
Reviews and Testimonials
Word-of-mouth marketing is the real feature of these two metrics. They are capable of making or breaking your brand’s identity online. Analyze them to measure positive and negative reviews separately.
Customer Acquisition Cost (CAC)
The cost of customer acquisition defines the value of conversion of a lead into a customer. The metric helps you save money on ineffective marketing campaigns. To calculate CAC, divide the amount spent on lead generation with the total number of new customers.
Customer Lifetime Value (CLV)
Customer lifetime value is the revenue each customer brings to your venture. Not with each purchase, but with the overall business transactions and relationship.
The formula to find the CLV is: Overall customer revenue per year X duration of the business relationship in years – the total cost of acquiring and serving them.
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