Data is the driving force in today’s competitive marketing landscape. As a conversion rate optimisation specialist, I’m constantly tweaking campaigns based on real metrics. And while it can be tempting to get caught up in vanity stats, the truth is that only a select few KPIs actually translate to increased profits when optimised. In this post, I want to share the five vital numbers I believe every marketer needs to have top of mind.
Believe me, I’ve tried tracking everything under the sun before realising that streamlining focus to these essential metrics is key. By honing in on tracking and improving the right stats each month, you’ll be amazed at the impact on your bottom line. Let me walk you through the KPIs that really count. I think you’ll agree they’re worth dedicating some extra attention to.
Metric #1: Conversion Rate
I’ll start with the one we all know but don’t always prioritise – conversion rate. Often misunderstood as an afterthought, increasing CR should be Job #1 as more sales for the same spend supercharges ROI. Set your typical conversion goal on key qualifying actions. Then, A/B test ad copy, landing pages, calls to action and more to lift response rates over time. Even incremental gains deliver huge results.
Metric #2: Cost Per Acquisition
Closely tied to CR is CPA – the all-important figure that represents your overall customer acquisition costs. By optimizing CR and keeping CPA low, your marketing scale drastically increases while staying lean. Track and break down CPA by source to eliminate wasteful spend. Automate bidding and re-targeting based on average CPA benchmarks. The name of the game is acquiring more customers for less.
Metric #3: Average Order Value
Beyond sheer units, longer-term growth comes down to customer lifetime value. Monitor how your marketing affects total cart size over purchases one to three. Try promotion strategies, accelerated customer journeys and tailored re-engagement campaigns to boost average order totals. Remember – money in must outweigh money spent for lasting prosperity.
Metric #4: Repeat Purchase Rate
Loyal, frequent customers are your biggest asset. Track how many buyers return within 30, 60 and 90 days to gauge stickiness. Tailor Automated remarketing based on past carts/orders. Develop targeted win-back promotions for lapsed cohort segments. A 5% improvement in repeat rates does wonders for revenues.
Metric #5: Marketing Attribution
Lastly, gain clarity on your multi-channel efforts through accurate attribution. Understand how much value each touchpoint provides – from brand awareness campaigns to last-click conversions. Integrate tools that track movement along the full funnel. Then quantify ROI by allocation of profit to the marketing that enabled each sale.
I hope highlighting these core five KPIs has given you some new perspective on prioritizing metrics. Remember – let data be your guide to constant campaign enhancement. By zeroing in on the stats that really impact margins each month, you’ll optimize efforts into a powerful, results-driving machine. Keep those key performance indicators top of mind and watch your business blossom.