The 7 essential customer marketing KPIs you need to track

The Customer Marketing KPIs are a set of key performance indicators that can help you to; 

-Provide the best possible experience for your customers and drive results for your business. 

If you’re looking to measure the success of your customer marketing programs, you need to use the right KPIs. 

And in this article, we will discuss the seven essential customer marketing KPIs you need to track.

 

What are Customer Marketing KPIs

Customer Marketing KPIs are a set of key performance indicators that help you measure the success of your customer marketing programs and understand how to improve them. 

There are three categories of KPIs: 

1) metrics that show the effectiveness of your customer outreach efforts, 

2) metrics that show how well your content is performing 

3) metrics that show the impact on leads.

1) metrics that show the effectiveness of your customer outreach efforts, 

#1. Response Rate

Response rate is a metric that shows how many people responded to your customer outreach efforts. 

This can be measured by the number of people who responded to an email, signed up for a webinar, or filled out a form.

#2. Conversion Rate

Conversion rate is a metric that shows how many people took the desired action after receiving your outreach.

2) metrics that show how well your content is performing 

There are a few key metrics that can show how well your content is performing. 

These include things like:

– engagement (how often people are interacting with your content), 

– reach (how many people are seeing your content), 

– and conversion (how many people are taking the desired action after seeing your content). 

By tracking these metrics, you can get a good sense of how well your content is performing.

And where you might need to make some improvements.

3) metrics that show the impact on leads.

Metrics that show how your team is impacting leads. 

 Onboarding new employees are important, but so is onboarding new clients. 

Use these metrics to show how your team members are impacting leads and potential clients.  

Whether it’s a direct salesperson or an administrative assistant, be sure to measure their performance by the number of leads they’ve helped acquire. 

To make this more accurate, you should consider whether the lead came from cold outreach or an outbound campaign.

The 7 Essential Customer Marketing KPIs You Need To Track

The act of targeting customers is a cornerstone of any successful business. 

Without it, you’re leaving money on the table. 

To make sure that you are getting the most out of your customer marketing efforts, you need to track key performance indicators (KPIs).

1. Customer Acquisition Cost 

Firstly, Customer Acquisition Cost is one of the essential customer marketing KPIs you need to track

What is low customer acquisition cost?

A low customer acquisition cost [low CAC] is a marketing strategy where the focus is on strategic marketing activities that are cheap and have a low cost of marketing. 

And the goal of this approach is to grow the number of new customers at a lower investment. 

The idea behind this approach is that acquiring new customers has become too expensive for most companies;

So it makes sense to find cheaper ways to get more people through your door.

What does a high customer acquisition cost indicate?

A high customer acquisition cost indicates that it costs more to acquire new customers than it does to retain existing ones. 

This can be due to several factors, such as:

– inefficient marketing spending,

– targeting the wrong audience,

– or offering products or services that are not compelling enough. 

By understanding your customer acquisition cost, you can make changes to your marketing strategy and improve your chances of success.

What are the types of customer acquisition costs?

When growing a business, it’s important to understand the different types of customer acquisition costs (CAC). 

This includes costs like advertising, marketing, and sales salaries. 

There are five main types of customer acquisition costs CAC: 

1] Paid Advertising 

Paid advertising is one of the most common types of customer acquisition costs.

You’re spending money to get your business in front of potential customers. 

There are a variety of paid advertising channels, including: 

– Paid search and such as (Bing Ads or Google AdWords) 

– Social media advertising and such as (LinkedIn Ads, Facebook Ads, and Twitter Ads etc.) 

– Display advertising (banner ads, Google Display Network).

2] Trade Shows 

Another one of the most common types of customer acquisition costs is money spent on trade shows.

Trade shows are a great opportunity to meet new people and form relationships that can benefit your company.

But in the past, these events were mostly about face-to-face interactions and generating leads. 

Today, they’re about much more. 

They’re about creating experiences that connect with attendees on a personal level and leave a lasting impression.

3] Public Relations

Another one of the most common types of customer acquisition costs is money spent on Public Relations.

Public relations is the process of building positive relationships with the media and other key influencers.

4] Sales and Marketing Salaries.

Another one of the most common types of customer acquisition costs is money spent on Sales and Marketing Salaries.

 You can expect your Sales and Marketing costs to increase as you grow. 

The more customers, clients and leads that your business is generating, the higher your costs will go. 

5] Customer service costs 

Another one of the most common types of customer acquisition costs is money spent on Customer service.

Customer service costs are the total cost of answering your customers’ questions, resolving their issues, and fixing any problems they have. 

You can break this down by the number of calls received, and the average call duration.

And how many agents are answering those calls?

2. Customer Retention Rate 

Secondly, Customer Retention Rate is one of the essential customer marketing KPIs you need to track.

What is a retention rate and why is it important?

The retention rate in business is the percentage of customers who come back after the initial purchase. 

A high retention rate meaning -that it is more likely your customer will buy from you again and again. 

A high customer retention rate is important for several reasons / why retention rate is important?

1] satisfying your customers’ needs

First, a high retention rate indicates that you are satisfying your customers’ needs and they are happy with your product or service. 

This means that you are not only acquiring new customers but also retaining the ones you have. 

2] a healthy business

Second, a high retention rate is an indication of a healthy business. 

It means that you have a good product or service that your customers want.

And that you are doing something right to keep them coming back. 

3] increased profits

Third, a high retention rate can lead to increased profits. 

Happy customers are more likely to buy more, and they are also more likely to refer others to your business. 

4] cheaper

It’s significantly cheaper and easier to keep a current customer than it is to acquire a new one.

 

Low retention rate meaning

A low retention rate can mean a lot of things for a business. 

— It could mean that customers are not satisfied with the company’s products or services;

 That they are not getting the value they expected, or that they are not being properly engaged. 

Low retention rates can be indicative of several problems, such as;

– a lack of satisfaction with the product, or a lack of understanding of how to use the product. 

If your company is seeing low retention rates, it’s important to investigate the causes and take corrective action. 

Low retention rates can mean lost customers and lost income, so it’s essential to address the problem as soon as possible.

Whatever the reason may be, businesses need to address any low retention rates quickly and take steps to remedy the situation. 

Otherwise, they could quickly find themselves losing valuable customers and damaging their bottom line.

Customer retention rate example

And here are the four customer retention rate examples. 

1] increasing customer loyalty programs 

2] improving customer service 

3] reducing product prices 

4] increasing the use of social media

NOTE:

To ensure that your customer marketing efforts are on track and making a positive impact on your business.

We recommend using Dashthis -a Digital Marketing Reporting Dashboard Software;

– that helps your business get the complete picture of your digital marketing campaigns and their performance.

The DashThis Report is a digital database that gives you complete control over your marketing KPIs. 

The database tracks marketing performance for all your marketing channels at a glance.

CLICK HERE To Get 10 FREE digital Marketing dashboards For 15 Days.

Don’t worry! we don’t want your credit card details 

CLICK HERE To Get 10 FREE digital Marketing dashboards For 15 Days.

 

3. Customer Lifetime Value 

Thirdly, Customer Lifetime Value is one of the essential customer marketing KPIs you need to track.

Customer lifetime value in marketing:

Customer lifetime value in marketing is a metric used to measure the profitability of a customer over the entire period they are a customer of your business. 

CLV takes into account the average purchase amount made by a customer and the number of purchases they make.

And the time between each purchase. 

What does a good customer lifetime value look like

A good customer lifetime value is identifying and attracting customers who will have a high value to make a lot more money in the long run. 

A good customer lifetime value (CLV) is key to a company’s success.

What is the importance of lifetime customer value?

CLV -Customer lifetime value is important because it allows you to measure the long-term value of a customer, and understand how much profit you can expect to make from each customer. 

This information can help you make decisions about how much effort and money you should invest in acquiring and retaining customers.

4. Net Promoter Score 

Fourthly, the Net Promoter Score is one of the essential customer marketing KPIs you need to track.

What is a good and bad net promoter score?

A net promoter score (NPS) is a measure of customer loyalty that asks customers how likely they are to recommend a company’s products or services to others. 

A [high] good net promoter score means that customers are loyal and likely to recommend a company’s products or services to others;

While 

A low net promoter score means -customers are unhappy and likely to complain. 

A low net promoter score means that you have a lot of unhappy, dissatisfied customers who are unlikely to recommend you to others.

Types of Net Promoter Score

Net Promoter Scores have three main types: 

1] Detractors (0-6): 

These Customers are not likely to recommend your company/product/service. 

Detractors are customers who score a 6 or lower on the Net Promoter Scores.

2] Passives (7-8): 

These Customers are indifferent and not likely to recommend or detract. 

And those customers who score a 7 or an 8 are Passives.

3] Promoters (9-10): 

Customers who are likely to recommend your company/product/service.

And Promoters are customers who score a 9 or 10. 

Knowing the different types of NPS can help you improve customer satisfaction and increase your business growth. 

5. Customer Churn Rate 

Sixth, Customer Churn Rate is one of the essential customer marketing KPIs you need to track.

Define a good customer churn rate.

A good customer churn rate is a low percentage of customers less than 1% who discontinue the use of a service or product within a given period.

 It should ideally be less than 1% because it indicates that the company is doing something right.

What is a bad churn rate?

A bad churn rate is a term used to measure the number of customers who stop using a service. 

It is also known as customer attrition rate or customer loss rate. 

Is a low churn rate good or bad?

A low churn rate is good for both the company and the customer. 

It means that the customers are satisfied with what they are getting from the company;

While it also means that the company is making a profit.

But in some cases, this could be bad news for a company;

– if they are not attracting new customers.

Why is customer churn important?

Customer churn is important for several reasons:

But let’s take a look at three of the most important ones. 

1] Customer churn Measures Your Company’s Health 

Customer churn is a key indicator of a company’s health. 

The lower the churn rate, the healthier the company is. 

A high churn rate means that customers are quitting your company in large numbers, which is not a good sign. 

2] Customer churn is important because it directly impacts your company’s revenue. 

Understanding what causes customers to churn can help you reduce the amount of churn and improve your bottom line. 

3] Customer churn is important because it helps you acquire new customers.

Happy customers are more likely to recommend your product or service to others, which can help you acquire new customers.

NOTE:

To ensure that your customer marketing efforts are on track and making a positive impact on your business.

We recommend using Dashthis -a Digital Marketing Reporting Dashboard Software;

– that helps your business get the complete picture of your digital marketing campaigns and their performance.

The DashThis Report is a digital database that gives you complete control over your marketing KPIs. 

The database tracks marketing performance for all your marketing channels at a glance.

CLICK HERE To Get 10 FREE digital Marketing dashboards For 15 Days.

Don’t worry! we don’t want your credit card details 

CLICK HERE To Get 10 FREE digital Marketing dashboards For 15 Days.

 

6. Customer Engagement 

Sixth, Customer Engagement is one of the essential customer marketing KPIs you need to track.

What is good customer engagement?

Good customer engagement is a process that helps the company build a long-term relationship with the customer. 

It can be done in many ways, such as asking for feedback from customers, giving them rewards for their loyalty, and providing them with new content.

The first step in good customer engagement is to know what your customers want and need. 

You should also make sure that you are not trying to sell something that they don’t want or need.

What are the three 3 Characteristics of customer engagement?

Customer engagement is the process of getting customers to interact with your brand and products. 

And there are three 3 main Characteristics of customer engagement to get customers involved with your business.

1] Interesting content: 

Engaging content is what drives customer engagement. 

It can be anything from blogs, social media posts, advertisements, and even pop-ups that appear on a website.

2] Personalization: 

Personalizing the content for each customer will make them feel like they are being spoken to directly;

And not just another person who happens to see the same advertisement or post you created.

3] Interactivity: 

Interactivity allows the customer to participate in the process by giving them something to do other than just passively view your content or advertisements 

– This includes interactive websites, online surveys, contests, giveaways and more!

Customer engagement role

The customer engagement role is to ensure that your company has a strong relationship with its customers;

And provides them with what they need to be happy with your service or product.

The customer engagement role can be broken down into three stages: 

1) The first stage involves creating a strategy for engaging with customers;

– which includes identifying the target audience, defining their needs and wants, and deciding on how to reach them. 

2) The second stage involves implementing this strategy;

– by communicating with customers in ways that are tailored to their needs and preferences. 

This can involve using social media channels like;

– Facebook or Twitter, 

– distributing flyers on the street for specific events, or writing and sending emails.

3) The third stage involves evaluating the effectiveness of the strategy based on data collected from a variety of channels. 

7. Average Revenue per User

Seventh, Average Revenue per User is one of the essential customer marketing KPIs you need to track.

What is a good revenue per user?

A good revenue per user (RPU) can vary depending on your business model, but in general, a higher RPU is better. 

A good revenue per user is not a fixed number. 

It depends upon the type of business, the industry and the geographical location. 

For example; in some industries, such as online gaming, it is more than $10 per month. 

And in other industries like social media or e-commerce, it can be less than $1 per year.

Why average revenue per user is important?

There are many reasons why understanding your average revenue per user [ARPU] is important.

 Here are four of the most important: 

1] Average revenue per user is important because it can help you identify which products and services are most lucrative. 

2] Average revenue per user is important because it can help you determine whether you are pricing your products and services correctly. 

3] Average revenue per user is important because it can help you identify areas where you could increase customer spending. 

4] Average revenue per user is important because it can help you measure the profitability of your customer base. 

 

Conclusion 

There are a lot of different customer marketing KPIs out there;

But these seven are essential for understanding the success of your programs and how to improve them. 

By tracking these KPIs, you can ensure that your customer marketing efforts are on track and positively impact your business.

NOTE:

To ensure that your customer marketing efforts are on track and making a positive impact on your business.

We recommend using Dashthis -a Digital Marketing Reporting Dashboard Software;

– that helps your business get the complete picture of your digital marketing campaigns and their performance.

The DashThis Report is a digital database that gives you complete control over your marketing KPIs. 

The database tracks marketing performance for all your marketing channels at a glance.

CLICK HERE To Get 10 FREE digital Marketing dashboards For 15 Days.

Don’t worry! we don’t want your credit card details 

CLICK HERE To Get 10 FREE digital Marketing dashboards For 15 Days.

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