Customer data plays a big role in the success of a company. It helps determine the success of a campaign and the organization itself. At the same time, it gives the sales team the necessary information to improve lead generation.
The importance of analyzing customer data cannot be denied. However, it is also crucial for companies to have clear and accurate information to make the right decisions.
That is why marketing metrics matter.
There are multiple metrics you can choose from. Because of this, you may feel overwhelmed and confused. What you can do is to choose those that you think are most relevant to your goals.
To help you get started, here are three metrics that will help generate qualified leads:
This measures the number of clicks you gained or the submissions received by a call-to-action (CTA). It will help you better understand which of your messages successfully converted your target audience. At the same time, it gives you an idea as to which channels have the best engagement. In measuring, make sure you check data from all channels you have used. These include the company website, email, social media posts, or even pay-per-click (PPC) advertisements.
To calculate, divide the number of clicks by total website visitors, email recipients, or advertisement impressions. Then, multiply the answer by 100 to get the percentage. The result will be your click-through rate.
For example, your PPC advertisement had a total of 5,000 impressions and 1,000 of these clicked on it. Your calculation will be 1,000 divided by 5,000. The answer, which is 0.2, will be multiplied by 100. That means your click-through rate is 20%.
This key performance indicator (KPI) is perhaps the most relevant to lead generation.
Generally, what leads refer to will vary depending on the company. For some businesses, it includes people who start a free trial of a product. In this case, the leads will be the number of those who found the product interesting enough to decide to try it for free. Others consider contact with a prospect as a lead. Whatever the specific definition may be, one thing is clear. Leads are potential clients.
For salespeople and marketers, one important metric is customer lifetime value. It helps project revenue that will be generated per client throughout their lifetime for the business.
To calculate this, take into account the average purchase size of each client, the number of purchases a client makes in one year, and average profit margins to determine the annual profit margin average per client.
Keeping track of these metrics can be challenging, especially since they may come from different sources. Having a reliable tool or customer data management software can help.
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