Marketing Metrics – They Will Make You or Break You

Marketing Metrics

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Your business’ lifeblood is its customers. In order to gain enough customers to keep your business growing, you need to attract people’s attention; this requires a solid marketing campaign. However, we regularly see marketers making the mistake of thinking that a “good” marketing campaign means flooding various channels with clever advertisements. In truth, though, good marketing begins when you look before you leap into any action. In other words, you need to use marketing metrics to guide your marketing campaign’s direction. Here is why how you use — or ignore — marketing metrics can make or break your business:

Why are Marketing Metrics so Important?

While marketing is an invaluable tool for customer acquisition, it is also an investment. Every dollar that you invest into marketing is an expense. If you invest unwisely, then you will waste many of your resources — or even lose ground with consumers. Without marketing metrics, every marketing effort that you made would effectively be a shot in the dark that could succeed or fail. For example, if you try engaging a group of people via Twitter, but they spend most of their social media time on LinkedIn, then you won’t see very strong results. In this case, you can use marketing metrics to identify which channels your target audience uses most often.

Metrics also help you continue doing what works and cut back on what hasn’t been so successful. For example, metrics will allow you to see what types of topics are most engaging on your blog.

What Marketing Metrics Matter the Most for my Campaign?

Cost Per Lead (CPL)

Although your marketing campaign will sometimes create sales directly, this is not its purpose. Marketing exists to create interest in your company so that you have an opportunity to close the sale. This is also known as lead generation. Optimizing your marketing investment means minimizing the average cost for each lead generated. The formula for CPL is simple:

Total Marketing Spend / Leads Generated = CPL

So if you spent $1,000 on marketing and generated 20 leads as a result, then your CPL would be $50. If your typical closed sale generates $100 in revenue in this case, then your CPL is resulting in a profit; if your typical closed sale only generates $40 in revenue, then your marketing campaign is actually costing you money.

Percentage of Customers that Started as Marketing Leads

This shows how often your new customers start out as marketing leads. To figure this out, simply divide the total number of new customers acquired in a given time span by the number of customer generated via marketing. This is important because marketing should play an important part of your business’ growth.

Customer Lifetime Value (LTV)

You don’t want a customer to stop by once. You want them to invest in all of the accessories they need; when their product is used up, you want them to come back to your company for more. How much a person spends over a period of time defines their LTV. In addition to generating new leads, your marketing campaign should be nurturing current customers as leads. If your lead nurturing endeavors are successful, then your average LTV should be high. If it isn’t, then you know that you need to make adjustments in your lead nurturing endeavors (there are metrics that will guide you here as well).

Don’t Approach Marketing with a Blindfold on

You cannot achieve marketing success without knowing what road your campaign is headed down. With the right metrics, you will have all of the information you need to keep your campaign on track and show your marketing return on investment.

10.2 headshot3Robin Emiliani has been helping companies generate quality leads for almost 20 years. She enjoys teaching companies how to achieve results by utilizing technology. When she’s not marketing, she’s playing with her 3 spirited boys – usually on a court, on a field or on a mountain.


3 Tests To Run On Your Website Now

You’ve got a website, but do you really know what’s working on that site?

As a small business owner, you’re pulled in so many different directions and marketing is just one more thing on your list. Which is exactly why you need to pay attention to what’s working and what’s not so you can focus your efforts on the things that deliver results – leads and sales.

Today, I’m sharing three test you can run on your website to learn what’s really going on and how to put that information into action.

1. Heatmap Tracking

Before you start any testing, you want to get some good data on what is already happening on your website. Google Analytics provides insights into where your visitors find you on the web, yet what happens once they’re on your site is often a mystery.

That’s where heatmaps come in (click here to see a heatmap example from CrazyEgg).

Heatmaps provide you with a powerful visualization of how your website visitors use your site, including where your visitors are clicking and what they’re totally ignoring.

This insight is incredibly valuable, especially as you develop your website optimization strategy.

Instead of randomly selecting things to test, you can focus on specific improvement areas to make the most of the website traffic you’re generating.

Once you have implemented your optimization efforts, heatmaps will show you almost immediately how your visitors respond to any changes you make.

2. Menu

The menu navigation on your site is a great area to test as you optimize your website flow for visitors.

There are two simple, yet powerful, menu tests to consider that could have a significant impact on your website effectiveness.

Menu Test 1: Navigation Headings

As an example, let’s say the Duct Tape Marketing team wanted to improve clicks on Free eBooks so they decide to test a few other headers such as:

  • Free Resources
  • Freebies
  • Free Downloads

They could quickly see if another phrase would work better than ‘Free eBooks’.

Menu Test 2: Order

Another test you may want to run on your website navigation menu is the order you have each navigation item.


As an example, let’s say the Duct Tape Marketing team wanted improve ‘Free eBooks’ in another test. They could move ‘Free eBooks’ to the ‘Work With Us’ spot, testing if that would drive more visitors onto that page.

3. Call To Actions

Whenever you have a call to action – a button, image, graphic, landing page or plain text – you have the opportunity to test different variables as you optimize your website experience.

Two of the easiest variables to test include color and text.


Color can have a major impact on how well your calls to action work throughout your website. But the tricky thing with color is that no one color works best all the time.

What stands out is much more likely to be clicked, so try colors that contrast and stand out. If you’re not sure where to start with testing colors, try this free tool from Adobe that provides great color palettes to test.


What you say on your call to action can have a major impact on your conversion rate. Optimizely has a great article about the 2008 Obama campaign testing text on their call to action button.

The four buttons they tested were:

  • Join Us Now
  • Learn More
  • Sign Up Now
  • Sign Up

The best performing button was ‘Learn More’, beating the original by over 40% and resulting in an estimated 2.8 million extra subscribers.

Optimizing your website begins with good data into what’s currently happening. Once you have that data, you can focus on a few key areas to test. Sometimes it’s very small tweaks – a different color, phrase or even menu navigation order – that can have a major impact on how well your website works for your business. But you won’t know until you test.


MichelleEvans-150x150Michelle Evans is a Business and Marketing Strategist specializing in creating simple, effective marketing and business growth strategies that free up time, bring in clients and deliver results. Download your free Simple Marketing Metrics Guide for a fast and easy framework to help you discover what marketing will grow your business (and what won’t).