Different Types of Core Metrics:

Different Types of Core Metrics:

1. Business performance metrics
2. Website Metrics
3. Ad/social media metrics

1. Business performance metrics:

This is the most important metrics. Let's start with two business performance metrics that are most critical to any business owner running a digital marketing campaign. Whether it's an e-commerce or lead generation business.

1. CPA: Cost per acquisition .
2. LTV: Lifetime customer value

CPA: Cost per acquisition .

How much on average you have to spend to acquire a new customer?

1. let's say you spend 2000 $ on marketing so far and you've generated ton and tons of lead into your website, but only 1 of those leads turn into sale. That means your customer per acquisition is 2000$
2. if you are an e-commerce store, you are selling products online, you just spent 500$ on advertising, you have 1000s of clicks on your link but only 1 person has bought than that would be 500$ CPA

Now you may be thinking that it's a really high CPA i.e cost per acquisitions to have.

However, the CPA is directly proportionate with your lifetime customer value.

LTV: Lifetime customer value:

In a nutshell, it's an average of the total amount of money that an average customer would spend with you, over the lifetime of them doing business with you.

If you are brand new business or startup, it might be difficult to know what Lifetime value is going to be? Your business model is going to have an impact on your LTV.

For example:

1. Selling a product one-off purchase, and people are aren't likely to ever need to buy from you again. your lifetime value is just going to be the cost of your product or service
2. Vs a subscription service
3. look up the typical lifetime of a customer in your industry to get a rough estimation of how long a customer will stay with you
4. average life * monthly fee.
5. for example 10$ a month: if you find out the average life span of customer in your industry is 12 months
6. So this will make the average lifetime value or expected LTV of around 120$

Now if you find that your CPA i.e cost per acquisitions exceeds your lifetime customer value you are in trouble!

These are the main metrics that are going to help your business grow. That's why these two metrics are important. And are the metrics that you need to be absolutely obsessing over to grow your business profitably.

Two question you should be asking over as a business owner or a digital marketer.

1. How do we increase our lifetime customer value. in other words: how do we get our customers to either
2. Buy from us more often
3. or in higher amount
4. How do we improve our marketing performance so we are spending less to acquire each customer.

There is caveat there:

if you are confident about the customer lifetime value and you know that a lot of the customer that buy from you as one-off will turn into repeated buyers you may afford to acquire customer at loss because you know that you make your profits later. However this can be a incredibly risky tactic. if you don't already have a proved business model. And you don't know what % of your buyers are actually repeat buyers.

2. Website Metrics:

If you have online presence or your business is operating in the digital age. your website is going to be the hub of where the leads or purchases come from.

Really the easiest way to do this is to break these metics down in the different stages of buyer journey or even the marketing funnel.

• First thing we want to become aware is
• how people are finding us?
• how many people are finding us?

The easiest metric to track of this is your website traffic. We can use google analytics for this. Two main traffic related metrics you are going to pay attention:

1. Sessions:
2. total amount of time a new session has started on your website
3. session reset after a user been on your website for a certain amount of time
4. multiple sessions could even come from 1 individual user.
5. Unique Visitors:
6. Gives you much better idea as how many different user have been on your website.

So this is a good metric to track in terms of how effective business is bringing visitors and potential customers to your website.

Things you want to start tracking is:

1. Bounce rate:
2. Showing what % of visitors are leaving your website without taking any further actions like click other page or button i.e no interaction
3. if you have very high bounce rate, people coming to your website are not resonating or not seeing what they want to see.
4. Average session duration

This will give you good indication of how engaged potential customers/visitors are with the content that is on your website.

Tools like hotjar and lucky orange, clarity can help you dive deeper into it.

Conversion Rate:

This can broken down by different goals or even conversion paths. You can conversion rate can be different. for example if you have a contact form in your website vs a form that user can fill out to book a demo. These two can have different impacts.

In future post we will discuss in details about each specific metics.

you can find more here:

https://www.youtube.com/watch?v=mPiWWnJsVGw&ab_channel=ElevateDigital