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MODERN MARKETING METRICS
WHAT ARE MARKETING METRICS?
 Modern Marketing metrics are quantifiable values used to illustrate the marketing strategies’ efficiency
across all channels. You might want to monitor how well your digital marketing strategies are doing,
whether your SEO is progressing, or if you’re growing on social media. All of these can be measured with
the right marketing metrics.
 Marketing teams likely work across multiple channels. From website, chats, and social media handles to
one-on-one emails, you name it, and they have it covered.
 However, with such a wide range of platforms being used, it is essential for marketing teams to track
success and performance in real-time continually. This can be done with the key marketing metrics
 But remember when picking the most suitable marketing metrics for your business, you need to be
aware of which channel you’re using and who’ll make the decisions with the data.
TOP 10 MODERN MARKETING METRICS
Here is the list of key modern marketing metrics that every marketing team should track:
 DAU & MAU
 Inbound marketing Return on Investment (ROI)
 Cost per lead
 Customer Lifetime Value (CLV)
 SEO traffic
 Traffic to lead ratio
 Lead to Customer Ratio
 Net Promoter Score (NPS)
 Landing Page Conversion Rates
 Social traffic and conversion
 Traffic by device
DAILY ACTIVE USERS ( DAU) &
MONTHLY ACTIVE USERS (MAU )
 Daily active users are the number of unique users who open your app in a day. To find this value, you
could choose a single, 24-hour period and measure how many unique users were active during it. You
could also calculate the average amount of users that visit an app per day. To do this, sum the number of
unique users each day for a month. Then, divide that value by the number of days in the month. Here's
the formula:
 Average DAU = sum of each day's unique users / number of days in the month
 Monthly active users are the number of unique users who open your app in a month or a period of 30 or
so days. To find this value, you could choose a single month period and measure how many unique users
were active during it. Alternatively, just like DAU, you could calculate the average amount of users that
visit an app per month. To do this, sum the number of unique users each month for a year. Then, divide
that value by the number of months in a year, 12. Here's the formula:
 Average MAU = sum of each month's unique users / 12
INBOUND MARKETING RETURN ON INVESTMENT (ROI)
 ROI is one of the most critical metrics that marketing managers should track. It
shows how the time, resources, and money of business are being used.
 Calculating your inbound ROI return helps measure your monthly and annual
performance. Depending on this, your strategy can be planned and tweaked for the
following months or even a year.
 This metric breaks marketing ROI into campaigns and shows what works and what
doesn’t.
 A simple formula to calculate inbound marketing ROI: (Sales Growth – Marketing
Costs)/ Marketing Costs = Marketing ROI. Say, for instance, your business’s sales
grew by $1,000, and your marketing campaign cost $200, then the simple ROI is
400%.
COST PER LEAD
You need to measure customer acquisition costs for both inbound and outbound marketing. But how much does
it cost to acquire a customer?
Measuring your customer acquisition costs includes the integration of your marketing automation and CRM
systems, as well as the accounting of all costs associated with ERP integration.
Customer acquisition costs for inbound marketing include
 Manpower (Creative and Technological)
 Technologies and Software
 Overhead Costs
Customer acquisition costs for outbound marketing include:
 Advertisements
 Marketing Distribution
 Manpower (Marketing and Sales)
 Overhead Costs
CUSTOMER LIFETIME VALUE (CLV)
The CLV is the amount of money that customers are expected to spend on your business during their
lifetime. This is an important metric, as it helps you decide which segment of your customers warrant
more marketing investment. The customer acquisition cost is one of the metrics to consider in CLV.
A simple formula to calculate customer lifetime value: (Average sales per customer) x (Average number
of times a customer purchases every year) x (Average retention time customers {months or years})
$100 a pair of shoes X 4 pairs a year X 8 years = $100x4x8 = $3,200
SEO TRAFFIC
SEO is an ongoing process, and you need to track it in real-time to stay ahead of the
SEO curve.
Now comes the question of paid vs organic traffic. Which will work better for your
business?
 Google Analytics will help your business understand the performance of the
landing page and optimize it appropriately.
 While this SEO metric might not show quick results, it is important to track it
because it offers performance over time. This includes sessions, engaged visitors,
conversion rates, bounce rate, time spent, etc. These components can be
continually tweaked and improved.
TRAFFIC TO LEAD RATIO
The traffic lead ratio offers details about the number of website users that ultimately
turn into leads. These metrics helps you determine the quality of your website traffic
and whether you should change your strategy.
It is essential to understand your website traffic, particularly to know where it comes
from, whether it’s organic, direct, social media, or referrals.
Once you understand how your customers reach your website, it’s important to
capture legitimate leads.
Let’s say that your website has 1,000 website visitors and 100 new leads every month.
This means that the traffic to lead ratio of the website is 10:1. In simple terms, the
conversion rate is 10%.
LEAD TO CUSTOMER RATIO
Marketing campaign is on point, and you’re getting the leads you have envisioned. Now comes the next step, calculating the
number of leads your sales team can close. You should measure both the qualified lead conversion rate for sales, as well as the
accepted lead conversion rate.
Here is an example to understand the difference between the two:
Qualified leads
 Leads are deemed to be sales-ready based on their lead score or the completed activities. Most companies will consider a
lead that fills out a form, such as a “contact rep,” to be a leader that is willing to purchase the service or product. E.g., leads
who fill out a form for a webinar will be considered qualified leads.
Accepted leads
 Leads that the sales teams consider as opportunities and have already contacted or scheduled a call.
 With these two ratios in mind, you must ask yourself the following questions:
 Is my campaign attracting relevant leads?
 Is our CRM effectively passing eligible leads to sales teams at the right time?
 How high is our close rate?
 If your answer to any of these questions was “no”, then don’t worry – ‘Rome wasn’t built in a day. You can still pull up your
sleeves and make your marketing campaigns more effective in different marketing channels!
TRAFFIC BY DEVICE
As your customers spend more time on their phones, so should your marketing
campaigns. Your website should be effectively optimized for mobile devices.
Here are a few parameters to pay attention to:
 Mobile traffic
 Lead conversions from mobile devices
 Bounce rates for mobile devices
 Web optimized landing page conversion rates
Understanding how the mobile website experience is for your customers will
help you improve and refine it. And this will, in turn, increase mobile
conversions.
LANDING PAGE CONVERSION RATES
So, your landing page is up, and it looks fantastic. But here comes the most important question, is converting?
A landing page that does not produce leads is like a mirage in a desert; it looks promising at first, but it only leads
to disappointment. So, it is imperative to monitor your conversion rate.
Similar to your traffic to lead ratio, if your landing page attracts a lot of traffic but has a low conversion rate, then
it’s a warning sign that you’ll have to change some part of your marketing strategy.
For instance, try A/B testing some of the changes mentioned below and measure which ones get the highest
conversion rate:
 Adjust the color of your CTA
 Add more value to your CTA
 Make written content more persuasive;
 Add social proof (i.e., testimonials, reviews, awards, etc.)
SOCIAL TRAFFIC AND CONVERSION
Metrics that you can use to show the importance and effect of social media
on your marketing campaigns include:
 Lead conversions
 Customers conversions
 Percentage of traffic received
With social media channels like Twitter, Facebook, LinkedIn, Google+,
Pinterest, and Instagram, you may not have the resources or bandwidth to
maximize the marketing value of each one.. Still, by assessing the number of
leads, customers, and the percentage of traffic from each channel, you can
decide where you would like to focus your marketing efforts.
NET PROMOTER SCORE
Net Promoter Score (or simply NPS) measures a customer base’s willingness to promote a product or service to
colleagues and friends.
It asks for a 1-10 response to the following question:
How likely is it that you would recommend (brand or product X) to a friend or colleague?
 Promoters = 10s and 9s
 Neutrals = 8s and 7s
 Detractors = responses below 7
The score itself is then calculated by subtracting the proportion of Promoter scores from the proportion of
Detractor scores.
"The recommended way to measure customer happiness is to use Net Promoter Score (NPS). The beauty of NPS is
that it is a standardized number, so you can compare your company to others."
THANKS

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mordern marketing metrics.pptx

  • 2. WHAT ARE MARKETING METRICS?  Modern Marketing metrics are quantifiable values used to illustrate the marketing strategies’ efficiency across all channels. You might want to monitor how well your digital marketing strategies are doing, whether your SEO is progressing, or if you’re growing on social media. All of these can be measured with the right marketing metrics.  Marketing teams likely work across multiple channels. From website, chats, and social media handles to one-on-one emails, you name it, and they have it covered.  However, with such a wide range of platforms being used, it is essential for marketing teams to track success and performance in real-time continually. This can be done with the key marketing metrics  But remember when picking the most suitable marketing metrics for your business, you need to be aware of which channel you’re using and who’ll make the decisions with the data.
  • 3. TOP 10 MODERN MARKETING METRICS Here is the list of key modern marketing metrics that every marketing team should track:  DAU & MAU  Inbound marketing Return on Investment (ROI)  Cost per lead  Customer Lifetime Value (CLV)  SEO traffic  Traffic to lead ratio  Lead to Customer Ratio  Net Promoter Score (NPS)  Landing Page Conversion Rates  Social traffic and conversion  Traffic by device
  • 4. DAILY ACTIVE USERS ( DAU) & MONTHLY ACTIVE USERS (MAU )  Daily active users are the number of unique users who open your app in a day. To find this value, you could choose a single, 24-hour period and measure how many unique users were active during it. You could also calculate the average amount of users that visit an app per day. To do this, sum the number of unique users each day for a month. Then, divide that value by the number of days in the month. Here's the formula:  Average DAU = sum of each day's unique users / number of days in the month  Monthly active users are the number of unique users who open your app in a month or a period of 30 or so days. To find this value, you could choose a single month period and measure how many unique users were active during it. Alternatively, just like DAU, you could calculate the average amount of users that visit an app per month. To do this, sum the number of unique users each month for a year. Then, divide that value by the number of months in a year, 12. Here's the formula:  Average MAU = sum of each month's unique users / 12
  • 5. INBOUND MARKETING RETURN ON INVESTMENT (ROI)  ROI is one of the most critical metrics that marketing managers should track. It shows how the time, resources, and money of business are being used.  Calculating your inbound ROI return helps measure your monthly and annual performance. Depending on this, your strategy can be planned and tweaked for the following months or even a year.  This metric breaks marketing ROI into campaigns and shows what works and what doesn’t.  A simple formula to calculate inbound marketing ROI: (Sales Growth – Marketing Costs)/ Marketing Costs = Marketing ROI. Say, for instance, your business’s sales grew by $1,000, and your marketing campaign cost $200, then the simple ROI is 400%.
  • 6. COST PER LEAD You need to measure customer acquisition costs for both inbound and outbound marketing. But how much does it cost to acquire a customer? Measuring your customer acquisition costs includes the integration of your marketing automation and CRM systems, as well as the accounting of all costs associated with ERP integration. Customer acquisition costs for inbound marketing include  Manpower (Creative and Technological)  Technologies and Software  Overhead Costs Customer acquisition costs for outbound marketing include:  Advertisements  Marketing Distribution  Manpower (Marketing and Sales)  Overhead Costs
  • 7. CUSTOMER LIFETIME VALUE (CLV) The CLV is the amount of money that customers are expected to spend on your business during their lifetime. This is an important metric, as it helps you decide which segment of your customers warrant more marketing investment. The customer acquisition cost is one of the metrics to consider in CLV. A simple formula to calculate customer lifetime value: (Average sales per customer) x (Average number of times a customer purchases every year) x (Average retention time customers {months or years}) $100 a pair of shoes X 4 pairs a year X 8 years = $100x4x8 = $3,200
  • 8. SEO TRAFFIC SEO is an ongoing process, and you need to track it in real-time to stay ahead of the SEO curve. Now comes the question of paid vs organic traffic. Which will work better for your business?  Google Analytics will help your business understand the performance of the landing page and optimize it appropriately.  While this SEO metric might not show quick results, it is important to track it because it offers performance over time. This includes sessions, engaged visitors, conversion rates, bounce rate, time spent, etc. These components can be continually tweaked and improved.
  • 9. TRAFFIC TO LEAD RATIO The traffic lead ratio offers details about the number of website users that ultimately turn into leads. These metrics helps you determine the quality of your website traffic and whether you should change your strategy. It is essential to understand your website traffic, particularly to know where it comes from, whether it’s organic, direct, social media, or referrals. Once you understand how your customers reach your website, it’s important to capture legitimate leads. Let’s say that your website has 1,000 website visitors and 100 new leads every month. This means that the traffic to lead ratio of the website is 10:1. In simple terms, the conversion rate is 10%.
  • 10. LEAD TO CUSTOMER RATIO Marketing campaign is on point, and you’re getting the leads you have envisioned. Now comes the next step, calculating the number of leads your sales team can close. You should measure both the qualified lead conversion rate for sales, as well as the accepted lead conversion rate. Here is an example to understand the difference between the two: Qualified leads  Leads are deemed to be sales-ready based on their lead score or the completed activities. Most companies will consider a lead that fills out a form, such as a “contact rep,” to be a leader that is willing to purchase the service or product. E.g., leads who fill out a form for a webinar will be considered qualified leads. Accepted leads  Leads that the sales teams consider as opportunities and have already contacted or scheduled a call.  With these two ratios in mind, you must ask yourself the following questions:  Is my campaign attracting relevant leads?  Is our CRM effectively passing eligible leads to sales teams at the right time?  How high is our close rate?  If your answer to any of these questions was “no”, then don’t worry – ‘Rome wasn’t built in a day. You can still pull up your sleeves and make your marketing campaigns more effective in different marketing channels!
  • 11. TRAFFIC BY DEVICE As your customers spend more time on their phones, so should your marketing campaigns. Your website should be effectively optimized for mobile devices. Here are a few parameters to pay attention to:  Mobile traffic  Lead conversions from mobile devices  Bounce rates for mobile devices  Web optimized landing page conversion rates Understanding how the mobile website experience is for your customers will help you improve and refine it. And this will, in turn, increase mobile conversions.
  • 12. LANDING PAGE CONVERSION RATES So, your landing page is up, and it looks fantastic. But here comes the most important question, is converting? A landing page that does not produce leads is like a mirage in a desert; it looks promising at first, but it only leads to disappointment. So, it is imperative to monitor your conversion rate. Similar to your traffic to lead ratio, if your landing page attracts a lot of traffic but has a low conversion rate, then it’s a warning sign that you’ll have to change some part of your marketing strategy. For instance, try A/B testing some of the changes mentioned below and measure which ones get the highest conversion rate:  Adjust the color of your CTA  Add more value to your CTA  Make written content more persuasive;  Add social proof (i.e., testimonials, reviews, awards, etc.)
  • 13. SOCIAL TRAFFIC AND CONVERSION Metrics that you can use to show the importance and effect of social media on your marketing campaigns include:  Lead conversions  Customers conversions  Percentage of traffic received With social media channels like Twitter, Facebook, LinkedIn, Google+, Pinterest, and Instagram, you may not have the resources or bandwidth to maximize the marketing value of each one.. Still, by assessing the number of leads, customers, and the percentage of traffic from each channel, you can decide where you would like to focus your marketing efforts.
  • 14. NET PROMOTER SCORE Net Promoter Score (or simply NPS) measures a customer base’s willingness to promote a product or service to colleagues and friends. It asks for a 1-10 response to the following question: How likely is it that you would recommend (brand or product X) to a friend or colleague?  Promoters = 10s and 9s  Neutrals = 8s and 7s  Detractors = responses below 7 The score itself is then calculated by subtracting the proportion of Promoter scores from the proportion of Detractor scores. "The recommended way to measure customer happiness is to use Net Promoter Score (NPS). The beauty of NPS is that it is a standardized number, so you can compare your company to others."