More 2 Marketing

Susan
More to marketing. Welcome to my podcast More 2 marketing a podcast on marketing product and everything in between. I’m your host, Susan, and today we’re going to talk through some of the top marketing metrics that you need to be ensuring that you are capturing for any marketing campaign. Marking measurements, also known as marketing metrics, are essential for evaluating the effectiveness of marketing efforts. It is important to understand what you want. The goal of your. Marketing to be. And to ensure the right measures are put in place. I would also go a step further and say you need to have a benchmark so that you know what success looks like when you’re seeing those goals, and then you can actually review it and go back and see did you hit them or not and what could you do to maybe change. So let’s just. Go through some of the key marketing metrics. CTR click through rate CTR. It is the percentage of people. Who click on a specific link or add the calculation is normally number of clicks divided by number of parent impressions times 100. An example of this is if your ad receives say 500. 6 out of 10,000 impressions the CTR is 500 clicks divided by 10,000 impressions times 100. So 5% very handy ones to know if everything’s improved when you’re looking for click through rates. Next one is conversion act should be pretty simple, but it’s the percentage of users who take a design action, such as making a purchase. So the conversion there is a purchase. Calculation is the number of conversions divided by the number of visitors. Times 100. Now this conversion rate could be used either for in store or online. It’s more prevalent for online though. An example here is you’ve got 100 visitors to your website, the result is 5 purchases. So the conversion rate is five conversions divided by 100 visitors equals 5%. Tack CAC customer acquisition cost. This is the costs associated with acquiring a new customer. Now, it generally is more expensive to acquire new customer than it is to keep a customer. So always keep that in mind too when you’re. Looking at this number. The calculation is the total marketing and sales expenditure divided by the number of new customers. So this is an example where we spend $5000 on marketing. We get 100 new customers, the CAC. Customer acquisition cost is $5000 / 100. So it’s $50 per customer to be. Acquired. Return on investments ROI the profitability of a marketing campaign in relation to the investment doesn’t have to be a marketing campaign, but it’s just your return on investment of the funds that you put in to make a campaign happen or an activity happen. The calculation is your net profit minus your marketing costs and then divide all that by your marketing costs and times it by 100 for a percentage. So if a marketing campaign generates $10,000 in profit. With 2000 in costs. Marketing costs. The return on investment is so you got 10,000 profit minus the 2000 marketing they need to buy that buy 2000. Because that’s the marketing costs and then you times it all by 1. 100 so let’s. Go off in this example 400% increase. CLV, one of my favourites customer lifetime value. It’s predicting the revenue that you’re going to get out of a customer and what they’ll generate through their relationship with you over the lifetime. They’re with you naturally. So in many cases people sell products or services or have a relationship with her, a customer that will last me on that one purchase. Telco is a perfect example of that, where you’ve got yearly plans or monthly plans depending on what you’re on, and then you’re going to have ongoing hopeful relationship when you renew every one month to 1. Year, whatever it is. Calculation here is the average purchase value. Times the average purchase frequency times the average customer lifespan. So you need to have a little bit of understanding about how long your customers. Will be with. You here too, but the example here is your average purchase is say $50. You’ve purchased probably 4 * a year, and you’re with them for about average of five year customer lifespan. So the CLV here is $50.00 * 4 for four times a year, times five years, which equals 1000. So $1000 is what you’re worth. In this example for the customer lifetime value. And when you compare that to just the one off purchaser 50. It really gives you an idea of why you want to retain customers as well, because you could lose out on all that extra revenue from that relationship breaking down. CPC cost per click. This one here is definitely for online. It’s all about the price you paid for each click on a digital advertisement, so this is just when anyone just goes and clicks on your ad on. Your banner or. Whatever it is. They’re not actually required to do an action other than click. This particular one shows the cost incurred for each click. And it’s it’s quite a simple one as well. It’s just the volume that’s coming through. And then how much you’re being? Charged for it so. This one can go high, especially if you’re doing things like Google Adwords. You just got to make sure. It’s worth it. And that’s where you might want to do the different metric of CPA, which is cost per acquisition. So the difference here is. That click, if you’re using the digital advertising as an example, you actually go cost associated with a final purchase, which might be a better metric. And this CPA indicates the cost associated with requiring a new customer through marketing efforts. Another few that you should consider when you’re looking at digital is your bounce rate. Particularly this is for EDMS and things like that. And our all websites and submission percentage of visitors who, for example, leave a website without interacting with it. So for this one here the calculation is number of single page sessions divided by total sessions times 100. So the bounce rate is important because sometimes you may not know there’s a problem with your site and if you do watch this as part of your dashboard you can see. There’s something happening. Also, on the other hand, it’s also good to know when it comes to the customer journey mapping. Where are people naturally just leaving? Is there a page you can remove there? Is there improvement in wording, blah blah blah that you could be doing to your site? Email open rate. Tracks the percentage of recipients who open an email. Calculation is pretty simple here. Number of emails open divided by number of emails sent times 100 most of the time your. Email supporting programme, whatever it might be, will help you with that calculation already in its dashboard. Social media engagement, especially things like likes, shares, comments and other interactions on social media. This calculation is the total engagements divided by total followers times 100. This is good for some businesses, not for all. Sometimes it’s also very hard to track too, because there might be more manual if you don’t have ways to interact into a dashboard. So this one is. A. Depends on your business. One that I love to watch is the churn rate. This reflects the percentage of customers who stop using a product or service within a given time. So you need to understand when your turn time is up. So some businesses say it’s within a day seven days, six months, whatever it might be. So remember, the churn rate reflects the percentage of customers who stop using a product or service within a given time. So pick up that time means for you. Calculation is number of customers at the start. Minus number of customers at the end, so this could be a month period for example. Divided by the number of customers at the start Times 100. This one’s a good one to do on a monthly basis. That’s what I use most of. The. Time, but in some businesses that. Might be more frequent or less frequent. Net Promoter score, NPS. Evaluates customer loyalty and willingness to recommend a brand or product. There are many programmes such as Medallia out there that you can use to do this for you as long as you have the right questions. Whenever you’re asked when you’re leaving a business, could you please fill in this survey? What do you think of your service today? You’re starting to go through an MPs or TMPS, which is a touch point NPS survey. And that’s to understand how satisfied that customer is and the willingness. Of them coming. Back everyone always wants 10 out of 10. But in reality it’s not. It’s very rare to get 10 out 10 from every customer that comes through because most of the time you have to. Help them with something. Organic search traffic shows a number of visitors who who reach a website through unpaid search results. So if you think about Google. I have put in a search for something and it comes at the very top with the results when they. Say. Sponsored ad. That’s not organic. That’s when you get beyond those and you swell a bit down when it doesn’t say that. That’s when it is. Inorganic. Organic is all about the naturalness of things occurring pretty much on the name, so it’s what you’ve earned yourself. It’s you’ve done your essay on your website, for example, or you’re you’re regularly moving and doing content on your website, adding your products over, and might be search engines recognise it as. Quality and that’s where you’re going up higher or lower in the organic search traffic when people search for the type of words you’re looking to have on your or recognise against your business or product. Add click through conversion rate. Measures conversions resulting from ad clicks. Marketing qualified leads. MQL S. NQL identifies leads with potential to become customers based on marketing interactions. This one’s more for when you’re working with a partner. And naturally, the one that comes after that is service qualified leads. SQLS they identified leads that deemed ready for a sales process. So all these type of marketing metrics combining the right ones for you. And having them on a clear dashboard where you review daily, weekly, monthly, yearly and then based on campaigns as well, we’ll help you understand your business better. And make those decisions that will be better for your business and your customers too. There are many more metrics out there. Use the ones best for you, but always make sure to benchmark and always make sure to trap to make sure that. You know what success looks. Like and if when you need. To. No one does everything right the first time. Thank you for listening to more to marketing. Don’t forget to follow for more podcasts. More to marketing.