To see how well their marketing avenue is doing, CMOs need to track metrics that are tied directly to their business goals. In this blog post, we have covered five metrics every CMO should be tracking. Read on.
By Manreet Khara
5th April 2023
In today’s data-driven world, tracking metrics is an essential aspect of any business’s success. For marketers and CMOs, tracking metrics is particularly important to measure the effectiveness of their marketing campaigns and ensure they are achieving their business objectives. However, it’s not just about tracking any metrics but rather tracking the right metrics.
Tracking the right metrics can provide invaluable insights into the performance of your marketing campaigns and help you optimize them for better results. And it’s also important to avoid falling into the trap of tracking vanity metrics, which may look good on paper but do not provide any real value and can prevent you from making true data-driven decisions.
Instead, it’s important to focus on metrics that are directly tied to your business goals and that provide actionable insights. In this blog post, we will discuss the five key metrics every CMO should be tracking and provide detailed tips on how to increase each one.
Return on Investment (ROI) is a financial metric that measures the profitability of an investment by calculating the ratio of the investment’s profit to its cost. In marketing, ROI is calculated by subtracting the cost of the marketing campaign from the revenue generated by the campaign and dividing the result by the cost of the campaign.
As a CMO, tracking ROI is crucial because it provides insight into the profitability of your marketing campaigns. If your campaigns are generating a positive ROI, you know that your marketing efforts are paying off. Conversely, if your campaigns are generating a negative ROI, it’s time to re-evaluate your marketing strategy.
To improve ROI, focus on optimizing your marketing campaigns. This includes targeting the right audience, creating compelling content, and optimizing your ad spend. Here are a few tips to help you improve ROI:
Customer Acquisition Cost (CAC) measures the cost of all the efforts you put towards acquiring a new customer. It’s calculated by dividing the total cost of sales & marketing by the number of new customers acquired.
Tracking CAC is important for CMOs because it helps determine the effectiveness of their sales and marketing campaigns. If your CAC is too high, it may be time to reassess your customer acquisition strategy.
To reduce CAC, focus on increasing the effectiveness of your sales and marketing campaigns. This includes targeting the right audience, creating engaging content, and improving your sales process. Here are a few tips to help you reduce CAC:
Conversion rates measure the percentage of visitors to your website or landing page that take a specific action, such as making a purchase or filling out a form. Tracking conversion rates is important because it helps you understand how effective your website or landing page is at converting visitors into customers.
To improve conversion rates, focus on improving and optimizing your website or landing page. This includes creating compelling content, optimizing your user experience, and improving your call-to-action. Here are a few tips to help you improve your conversion rates:
Customer Lifetime Value (CLV) measures the total amount of revenue a customer will generate for your business over their lifetime. It is calculated by multiplying the average value of a customer’s purchase by the number of purchases they will make in a lifetime.
Tracking CLV is important for CMOs because it helps you understand the long-term value of your customers. If your CLV is too low, it may be time to reassess your customer retention strategy.
To increase CLV, focus on building strong relationships with your customers. This includes providing exceptional customer service, offering loyalty programs and incentives, and encouraging repeat business. Here are a few tips to help you increase CLV:
Social media reach and engagement measures the number of people who have seen or interacted with your social media content. Tracking social media reach and engagement is important because it helps you understand how effectively your content is resonating with your target audience.
To increase social media reach and engagement, focus on creating engaging and shareable content. This includes using compelling visuals, storytelling, and user-generated content. Here are a few tips to help you increase social media reach and engagement:
Tracking key metrics is essential for CMOs to ensure that their marketing campaigns are effective in achieving their business goals. In this blog post, we discussed the five key metrics every CMO should be tracking and provided detailed tips on how to increase each one.
By tracking ROI, CAC, conversion rates, CLV, and social media reach and engagement, CMOs can make data-driven decisions and optimize their marketing campaigns for maximum impact.
If you want to be the CMO who always has a holistic view of their marketing activities, check out DiGGrowth, an AI-driven, no-code marketing analytics platform to measure your marketing effectiveness. Alternatively, please feel free to write to us at firstname.lastname@example.org and we’ll get right back to you.
DiGGrowth helps B2B marketers do more with less and increase marketing ROI by 30%Start Free Trial
Data analysis has become an essential part of...Read full post
In the traditional business approach, organizations sought revenue...Read full post
Small and medium-sized businesses (SMBs) often struggle to...Read full post