3 Crucial Metrics to Hold Marketing Accountable
Now that you’re running the family business, you don’t have time to monitor all the nitty-gritty metrics within the company. You have people in place to manage them for you.
However, as the head of marketing, there are three metrics you should definitely know to hold marketing accountable.
A Metric that Monitors Engagement
Focus on the one platform where people respond to your content the most. This will be your engagement metric.
Let’s pretend that for you, that platform is Facebook. It’s where the most people follow you and where you get the most likes and comments.
This gives you the most tangible data regarding where the excitement is happening. This is important because you need to know when your engagement rate starts to drop, so you can find out why.
Maybe you’re not following the latest industry trend. Perhaps a new competitor is getting people’s attention. That’s where marketing can be held accountable.
Remember, this is only one of three metrics you need to know. Keep it simple and only concentrate on this one platform.
A Metric that Monitors When Engagement Turns into Action
The next important metric is your conversion metric.
A conversion is when a prospect does what you want them to do.
Going back to our Facebook example, let’s say you want people to click the “shop now” button on your Facebook ad to access your online catalog.
Your conversion metric tells you how many people clicked “shop now” compared to how many people saw the content.
If the data shows a high level of engagement but low conversions, then the marketing strategy needs to be reevaluated.
Maybe you’re promoting your latest line of dog food to a bunch of people who only have cats!
A Metric to Make Sure the Money Generates More Money
Last but not least, you need to know the cost of marketing.
This is the most important metric of all—the one that tracks your return on investment.
We recommend using the Customer Acquisition Cost (CAC) formula to calculate your marketing cost. This number will tell you how much it costs you to gain a new customer.
You want to spend as little as possible for more customers over time.
When you see this number going up, you now have a way to hold marketing accountable.
A higher CAC could indicate that you’re overspending on Facebook ads.
See page 4 in our Marketing Metrics Guide for a closer look at the CAC formula.
Move Marketing Forward by Tracking Three Metrics
Now that you know these three metrics, you never have to do random acts of marketing ever again! While these are the most important metrics, there are a few more that have an impact on your bottom line.
Download our Marketing Metrics Guide to learn more.
