Indicators to Measure Marketing Success
If you were baking a cake, and needed to know when it was properly cooked, how would you go about finding out? Most bakers will tell you that you need to stick a knife or a toothpick into the middle of the cake. If it comes out with bits of batter on it, it’s not ready yet.
This is a similar approach to measuring the success of your customer acquisition marketing campaign, which is why we’re using this analogy.
Just like the toothpick, key performance indicators examples enable us to determine how well we’re doing with our current customer acquisition campaign. Key performance indicators can be very useful and handy tools in your marketing arsenal, provided you know how to use them correctly.
What are KPI’s?
KPI’s, or Key Performance Indicators, are very easy to understand and master. These are essentially metrics that can be measured to get an accurate understanding of how well your marketing campaign is doing over a given period of time.
Key Performance Indicators Examples
There are a number of very effective key performance indicators examples that you can use to gauge the effectiveness of your marketing as it relates to customer acquisition.
Perhaps the most often used KPI is the customer acquisition cost or CAC itself. This essentially measures how much was spent on acquiring new customers, and can be utilized to calculate the cost of acquiring individual customers over a given period of time.
Lifetime Value of a Customer or LTV is another great key performance indicator that goes hand in hand with CAC metrics. The way that this is used, is in the form of a simple ration. For example, if your CAC is higher than your LTV numbers, it means that you are simply spending more money than your customer is currently worth to your business.
Find out more info on customer acquisition in our blog articles here
