8 Marketing Metrics Every Tech Company Should Be Tracking
In an ideal world, everybody’s marketing strategies would work without fail. There’s something quite disheartening about spending all that time planning only to see the results fall short of expectations. If you don’t want to play guessing games with your tech company’s success, it is best to observe and evaluate marketing metrics. That way, you’ll see how well your branding is going, whether or not you are making a profit, and so much more. Although nothing about marketing is easy, it does not have to be too complicated. Read on and see how you can start identifying metrics without a ton of hassle.
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8 Marketing Metrics Every Tech Company Should Be Tracking
You would be hard-pressed to find tech companies that do not want to get more clients. When you think about lead generation, an important consideration would be on the types that you acquire. Some are those who are most engaged with your company’s marketing efforts, which are also known as marketing qualified leads. Others are those who already sampled your products and want to be more involved. These different leads indicate how well you are doing in the various facets of your operations. By taking them all into account, you receive unique feedback on where you need to improve and what your strengths are as a business.
Sometimes it isn’t easy to know when you need productivity tips. An excellent way to find out is through your company churn rate. This is the rate at which your clients and customers stop doing business with you. If you see that the rate is rising, then you may have a problem on your hands. Realizing when business is down is an excellent time to re-evaluate what you are doing to see what isn’t working.
In conducting a thorough analysis of your company website, one of the most important things to monitor is your conversion rate. This is what indicates how many site visitors have gone on to become actual customers. According to Wordstream, the average conversion rate for websites is at 2.35%. The same sources also came out with a report that companies in the top 10% see conversion rates that are at least three times higher than average. This particular metric is a simple yet reliable indicator of just how successful your marketing campaigns are.
Revenue may be the most apparent metric you can track. The more money you have, the better opportunities await you. With a high amount of income, your cost estimation efforts for an upcoming project becomes a breeze. You’ll be able to compensate your employees better, or you’ll have the chance to hire more people. For a less obvious route to for this tip, tracking how you attained your revenue is even more helpful. That way, you can have a better idea of how your tech company is making money, and if there are ways for you to improve further.
Return on Investment
Often shortened to just ROI, a return on investment isn’t always related to your company’s finances. It may also refer to the fruits of your marketing labor. Let us take the conversion above rate as an example. That can serve as a return on investment on your hours spent working on your website’s content. Then there are times when this metric does not even have to relate to your expected results. Note that a partial reason why a business plan exists is to entice investors. Reporting on your successes, finance-related or not, can serve as your investors’ ROI. As happy as it can be to know how much money they are getting back, it can be just as pleasing for them to hear about a recent company milestone, for example.
Customer Retention Rate
Customer retention is yet another important metric that determines how many people continue to patronize your company. Most businesses calculate the rate according to specific periods, which makes it easier to keep track of in the long-run. To accomplish this, there is a formula that one must adhere to. That formula is ((CE-CN)/CS)) X 100. The CE part represents the number of customers that are still on hand once the period ends. For the CN, that represents the new customers that bought from you during the same period. CS is how many customers you had at the period’s start date.
Customer Acquisition Cost
When you take the cost of your sales and marketing for a specific period and then divide it according to how many customers you had in the same period, you get your customer acquisition cost. How this metric shows you whether your efforts have been fruitful or not depends if your CAC is smaller than your monetization rate. If it is the other way around, then you may find your company in dire straights. According to the website, For Entrepreneurs, an out of balance business is when the latter happens more than the former, and is seen by many as a startup killer.
Last but certainly not least, there is traffic. The simplest explanation for this term is that this refers to how many visitors your sites and platforms get. Not only does this term apply to those who check out your official website, but also your company’s social media accounts, such as Facebook, Twitter, Instagram, Pinterest, and Linkedin. It is worth noting that as useful as it may seem to keep track of traffic, this isn’t necessarily the definitive marketing metric. Instead, think of this as a general indication of how your collective digital marketing efforts are doing. Be sure to keep track of the sources of the traffic across the various mediums. To increase traffic, one way is to take advantage of recent trends.
Marketing metrics are essential to any business because they inform on how to present practical efforts are. Knowledge of that sort will benefit any company, which makes the familiarization of the metrics above so crucial as well. Now that you’ve gone through this article, you should be in a much better position to employ these marketing metrics and take your tech company to a level above its current one.