Every successful marketer and business owner has a marketing strategy and a business plan.
Included in each is a set of goal and metrics that the leaders will use to track progress throughout the year.
The most effective marketing includes metrics that provide insight into how revenue is being generated, customers are being acquired and costs are being kept at a minimum - all of which helps identify problems, gaps and successes along the way.
So, what are these 'must have' marketing metrics? I reviewed each in my YouTube marketing video of the week which I'm sharing here so you don't have to leave the page.
Here is a high level definition of each:
Average Purchase Value (APV): the average amount any one customer spends on your products during one transaction
Average Purchase Rate Frequency (APRF): average number of purchases made by one customer during a specific time frame, i.e. during one month
Customer Value (CV): measures the possible value of your product compared to the competition as a way to determine if the perceived value was worth the money
Average Customer LIifespan (ACL): average number of total days between the first purchase and last purchase of your customers
Customer Lifetime Value (CLTV): how much money a particular customers is expected to pay over their lifetime and gives insight into their overall value to your company.
In follow-up to the video, I created a spreadsheet that shows a practical application of the information in the video. I use something we can all relate to - food. And I chose one of my favorite treats which 1) made me hungry, and 2) I actually spent time looking for photos as if it was really my business (who does that for a fake company and made up customer data? LOL).
If you'd like to download the 5 Marketing Metrics Worksheet, it includes definitions, what data you need, the formulas, practical use of each by using the formulas based on fake customer data, access to the formula fields so you can play around with the spreadsheet, and finally an interpretation of 'what this means' for each metric. PLUS I included two bonus metrics just because it made sense to do so.
Let me know in the comments below which metric is most valued in your business.
Vicki O'Neill is a fractional CMO in Ohio who helps frustrated small business owners grow customers and revenue. She helps connect the dots between target customer pain points and solutions. She founded KenKay Marketing in 2011, started her marketing and sales podcast Connect the Dots in 2018 and launched a 2nd podcast The Power of 3Xin 2019 with her Gen Z daughters. Connect with Vicki on social media wherever you spend time. Join her community and receive marketing tips that you can take action on immediately!