The 5 Top Customer Metrics You Need To Track

11.5.15 a

Metrics are the lifeblood of almost every successful business. Understanding who your customers are, what they need and how you can serve them is the key not just to growing a business, but keeping the clients you have happy.

Fortunately, the Internet makes collecting metrics remarkably simple. From web analytics to financial tools, it’s possible to analyze your current and potential clients at every step. However, this deluge of data can be overwhelming. While tools can and will collect just about every available detail, not all of the information is useful.

Here are 5 customer metrics that your business should definitely track if you want to grow your business and improve your customers’ experience. I believe these 5 metrics are the most important ones for successful learning:

1. The Funnel

11.5.15 b

With customer acquisition, every business has a new customer “funnel”, a process that customers go through to sign up. With most funnels, a large number of customers start at the first step (such as visit a site) and fewer complete each subsequent step.  It’s important to track how many potential customers pass through each part of the funnel to see where the major choke points are. Are many customers asking for a free trial but not continuing? Are many landing on a web page but not completing the needed form?

Finding the choke points in your funnel can help convert more customers and lead to a much smoother acquisition process. You can measure funnels with Mixpannel, clicktale, appsee, Google analytics, Heap and many more.

2. Cost Per Acquisition

Marketing is one of the largest expenses for many small businesses. However, not all marketing is created equal and a lot of it can simply take your money without any appreciable benefit.

The easiest way to determine what works and what doesn’t is to perform a cost per acquisition analysis. Simply add up how much you spend on marketing in a month and divide it by the number of new customers you acquire. If that number is greater than the amount you expect to receive from a customer, you are losing money on your marketing.

Once you’ve done that, it’s important to drill down further and see what the cost per acquisition of each campaign is so you can hone your efforts and lower your marketing costs. There are also online calculators that allow you to measure the CPA of your ads.

3. Lifetime Value

The lifetime value of a customer is simply how much you expect to earn from the customer over the course of their time with you. Here is a nice infographic that explains it.

For a subscription-based service, this is simply the average monthly revenue multiplied by the average subscription length. For a sales-oriented business, it would be the average sale multiplied by the average number of sales.

Not only is this useful for comparing to your cost per acquisition, but it is a useful metric by itself as it showcases ways to grow this value. Whether it’s finding ways to keep customers longer or simply getting more revenue from them while they are with you.

4. Customer Satisfaction

Customer satisfaction can be difficult to track, but it is a crucial step as satisfaction not only determines how long customers are with you and how much they spend, but how likely they are to recommend you.

Surveys and polls are the easiest way to collect satisfaction metrics through focus group. One-on-one interviews can help drill down to discover specific issues that you can improve. There are a few more ways, but you should also try to be creative with the way you track the customer satisfaction.

5. Churn

11.5.15 c

Churn is simply the number percentage of customers who leave during a certain period of time. It’s calculated by looking at the customers you have at the start of a period and seeing what percentage are not there at the end of it.

Obviously you want a low churn number, but you definitely want one that’s lower than the number of incoming customers. There are a few ways to improve your churn (feedback, testing and more).

Churn can also signal other problems. For example, if you have a high churn but low satisfaction, it could be a sign a competitor is luring customers away.


When it comes to metrics, it’s easy to be overwhelmed but by focusing on the ones that matter most, you can quickly parse what’s important and provide your customers, both potential and current, the best experience possible, so you can increase your revenues.

Simply put, that’s what metrics are about, finding ways to improve your business.


316982_10150423068035281_368995881_nThis post was written by Lior Levin who works for ily and also serves as a marketing consultant for rss api company called Superfeedr.


5 Easy Steps to Nailing a Sale

business partners, partnership concept with two businessman handshake

If you would have told me 10 years ago that I would enjoy being in sales, I would have laughed. I am the opposite of pushy, don’t love speaking in front of large groups, and only want what is best for people.

Looking back, that thinking came from me not fully understanding what it takes to be in sales. Now that I have a better understanding, sales is one of the elements I enjoy most about my position. It’s not about being pushy and can most definitely include wanting what is best for someone. It’s about listening, providing value, and developing a relationship. The tough “Always be closing” is a thing of the past.

Today, nailing a sale and nurturing a relationship goes hand and hand. Especially when it comes to bigger ticket items such as landing a new consulting gig.

Below are 5 easy steps that I have learned, and try to follow for every single sales opportunity that comes my way.

Do the Research

There is absolutely no excuse not to at least Google the person you are trying to sell to. A next easy step from there is turning to social media to learn a bit more about their experience and/or personal life. It is incredible what you can find out about people online these days, don’t let that resource go to waste. A huge key to selling is establishing a relationship. If you can find something in common with the person before you get on a call, you are one step ahead. You might also be able to find a positive thing to congratulate them on, such as a birthday, graduation, or an award.  The goal here is to either establish a connection or kick things off on a good note.

Ask the right questions

A second very important thing to keep in mind in sales is asking the right questions. People love to talk, if you can get them going, it is usually a good thing. Ask questions with the goal to get the prospect to admit any pain points they may have. And of course, actually listen to what they have to say with they start speaking. Don’t think about where the conversation is going or what you want to ask next, simply sit, listen, and take in what they are saying. The goal is you could then swoop in with a solution to help them fix any pain points and allow them to go back to only focusing on things they love.

Build Trust

Selling is about building trust. By giving away advice, almost to the point you may be feeling like you are giving away too much, you are able to establish a relationship with the client and to build that very important trust. When I have a sales call with a potential consulting client, I like to give them three very valuable recommendations that they could put into place regardless if we work together or not. I have found that this level of giving keeps the prospect engaged and appreciative for the direction.

Continue to Educate

The relationship doesn’t stop after you say your goodbye on a phone call. And the next step is not as simple as sending a proposal and asking for money. Content is king these days in terms of getting your message out there. However, it is equally important when it comes to sales. We have a large library of eBooks on various marketing-related topics. In addition, we have over 100 worksheets that help our clients focus on their marketing efforts. Access to this library allows me to send valuable resources to prospects after a phone call ends versus simply turning on the hard sales press.

Use tools to track leads

There are so many great tools available to keep tabs on the leads in your funnel. One of my new favorites is called Pipedrive. In a very visual way, Pipedrive allows me to see what phase my leads are in. You start with setting up your own funnel with specific steps in your sales process. Next, you add your leads and any information you have on them. Finally, you can set reminders for calls, emails and meetings and get an email in your inbox each day you have a reminder set.  This helps keep my inbox as clutter-free as possible – which is always a goal for me.

Sara JantschSara Jantsch is the Vice President of Operations at Duct Tape Marketing.  She oversees day-to-day operations to support the growth of Duct Tape Marketing and the Duct Tape Marketing Consultant Network.  She focuses on strategic planning, goal setting and directing the operations of the company in support of its goals.  Sara is also a Duct Tape Marketing Consultant and has a very strong passion for working with small business owners that started back at the dinner table as a child. Connect with Sara on Twitter.

The Secret Sauce for Optimizing Your FAQ Page

Having the human touch is a no brainer for companies that are starting out.  It’s undeniable that, cost aside, companies would much rather have sales people closing deals in addition to their support team personally answering every inquiry and problem…

Read More