4 Marketing Metrics To Help Small Businesses Grow

 
Team ThunderAct

Running a small business can be challenging. But having an insight into the market, your performance, and your customers can help you stay competitive. At the same time, it allows you to identify growth opportunities.

 

The Role of Marketing


Marketing is an important part of the business. That is especially true for small companies. 

 

The right marketing strategy can take products and services to the target customers. Thus, helping companies attain growth.

 

However, launching sales and marketing campaigns is not the end of the process. Companies should measure performance. Was the campaign successful? Is it helping the company attain its goals? By doing this, you get to see if you are spending your budget properly.

 

Marketing Metrics


There are many metrics that organizations can use to achieve growth. Here are some of them:

 

Sales Revenue


Income is a vital aspect of a business. It helps you find out if people are buying your products or using your services. To measure sales revenue, simply check the amount you earn from customer purchases. Subtract the cost of returned items or undeliverable merchandise. 

 

That said, you need to analyze the data that you get. It may be best to correlate the information with certain factors, such as advertising campaigns, cost of sales, competitive actions, seasonal forces, and price changes. 

 

Customer Lifetime Value (CLV)


CLV refers to the amount that a typical customer brings into the company’s revenue over their lifetime. For instance, some buyers only make one-time purchases. Others, on the other hand, may spend thousands on a product for years. To calculate the CLV, all you have to do is divide the total revenue by the number of customers.

 

Cost of Customer Acquisition


This metric shows how much it costs to acquire a new customer. It includes all the aspects related to sales and marketing. To measure the cost of customer acquisition, divide the total expenses for acquisition by the total number of new clients acquired over a certain period. With this metric, companies can tell if the money they spent for advertising and marketing campaigns paid off.

 

Conversion Rate


Nowadays, digital marketing plays a huge role in growing a business. So, it is crucial for companies to also measure online data. Conversion rate is a metric that determines what percentage of individuals ending up on landing pages turn into clients.

 

Generally, having a low conversion rate is a negative thing. That means you may be spending your money to push potential clients to your company’s page but are not getting sales out of it.

 

For small businesses, tracking is vital. Not only will it let you see the results of your efforts, but you can also use the data you acquire to make better sales and marketing decisions.

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