Several marketing metrics help you measure the performance of your business at regular intervals. These tools help you understand how well your business is performing and help you re-evaluate your business strategies routinely.
Let’s explore some of the most crucial metrics you should track.
Metrics that Your Company Needs to Track
1. Social Media Reach/Audience Growth Rate
By tracking the audience’s growth rate, you can quickly evaluate the performance of your social media marketing efforts and modify your strategy where necessary.
2. Cost of Customer Acquisition
The cost of customer acquisition (CAC) is determined by dividing your marketing expenses by the number of new customers you acquire in a specific period. CAC should always be measured alongside Customer Lifetime Value (CLV), which is a projection to estimate a customer’s monetary worth after factoring the value of the relationship over time.
3. Qualified Leads Per Month
This business metric helps you determine whether you’re reaching the right audience with the highest conversion rate. If the number of qualified leads you get is decreasing, you need to re-evaluate your advertising and sales strategies.
4. Break-Even Point
Your company’s break-even point is the quantity of commodity you must sell to ensure your total revenue equals your cost of production. Knowing your break-even point is crucial because it serves as the minimum goal you must achieve to avoid losing money during a specific period.
Company Benefits From Tracking Metrics
There are numerous benefits to tracking your business metrics. These benefits are;
- You get to know the truth about the performance of your business, from the highest level to individual employees. You can also identify problems before they get out of hand.
- You can identify issues that would otherwise go unnoticed, thus enhancing efficiency and productivity.
- Employees understand what’s important to your company when they see what you measure, which improves employee performance.
Tracking your business metrics can help you develop strategies that influence the overall growth of your business. Start measuring and take control today!