What to Measure

Last week we posted a piece titled, What You Measure Matters. The primary message was just that, there are a lot of different metrics that marketers have the ability to measure with today’s technology, but not all of them are equally important. There is not one magic number that will inform your decision making, just like there is not one set of metrics that applies equally to every company or industry.

So now that you know that, you may still be asking yourself, “What should I measure?”

So here are some big metrics, or KPIs, that marketers should be aware of (take the ones that apply to your business and leave the rest):

  • Conversion Rate (lead to sale)
  • Conversion Rate (web forms)
  • Click-thru Rate (on an ad)
  • Cost per Conversion (online ads)
  • Advertising Cost per Sale (what does it cost you to get a new customer)
  • Average Revenue per Sale
  • Average Revenue per Customer (lifetime value)
  • Website Traffic – bounce rate, time on site
  • Net Promoter Score
  • Satisfaction Ratings (from customer surveys)
  • Total Sales
  • Customer Growth
  • Number of Purchases per Customer
  • Customer Turnover or Churn

This is a high level list that leaves a lot of key metrics out. Your business might rely on subscription revenue or in-store traffic, and so it may need a different set of metrics altogether. But this should get you thinking about what to measure and steer you in the right direction.