Metrics to consider for performance marketing monitoring

Despite what many people think before entering the marketing world, statistical data and metrics are a very important asset for the success of your business.

We are very repetitive, we know it, but it is so crucial to measure your data that we will repeat this phrase as many times as necessary: only by measuring your data you can improve your processes and sales.

It is true that targeting the right audience, having a good product and setting a good sales strategy is fundamental, but so is tracking your metrics because that is what will allow you to perfect everything.

Therefore, the protagonists of this post are the metrics to monitor your marketing performance or performance results.

Here we go!

What do we mean when we talk about performance marketing?

We talk about performance marketing when we pay for results.

For example, if we were a marketing agency, our client would pay only for the results achieved.

It is becoming increasingly common for clients to seek out performance optimisation agencies to work with because they ensure that they achieve the goals they have set for themselves. 

In addition, these types of agencies tend to be more productive and efficient because they guarantee results to clients, and because if they don’t achieve what they promised they will NOT charge for the service. :) 

To achieve these results, it is more than essential to base all strategies on real data, that’s why metrics are so important.

Benefits of performance marketing or performance optimisation

As you can imagine, the advantages of working on a performance marketing basis are enormous, but let’s leave them here so that your subconscious starts to seriously consider putting performance optimisation at the heart of your marketing strategy:

• It’s easier to measure return on investment (ROI). Whereas cost-per-click and cost-per-impression don’t make it very clear whether our actions have resulted in a conversion, basing everything on results does.
• Obviously, all of our objectives are based on conversion and sales. Conversion refers to the achievement of any type of goal: subscriptions, follower growth, engagement, organic traffic and sales, among others.
• If we do not achieve the results we set out to achieve, it is clear that our conversion will not be a success either.
• We achieve levels of optimisation never seen before. As we say, metrics to monitor performance marketing are essential to achieve those results for which we pay or the client pays us, depending on the situation in which we find ourselves.
• Thanks to them, we have data in near real time, and it gives us the ability to fine-tune our strategies at all times.

As a client or advertiser, the risk of your investment is much lower because you will be able to estimate what your results and costs will be in advance.

The maximum benefit of performance marketing is that your budget is distributed more efficiently, and you will allocate it only to those actions that, thanks to the measurement of results, will almost certainly work for you.

After reading all this, you will understand why performance optimisation is considered to be the fastest growing, highest ROI, most recommended, highest opportunity and most effective type of marketing.

And all this because without real data we don’t know what works and what doesn’t, and we won’t know what will lead us to achieve results and what won’t.
Let’s get those metrics!

Essential metrics to monitor your marketing performance

These are the metrics that will allow you to monitor your marketing performance and, as a result, achieve the results and objectives you have set yourself for your business: 

• Cost of Customer Acquisition, which will let you know how much you have invested in converting your potential customer into an actual customer.
• Percentage of marketing cost when acquiring a customer, which will tell you the impact of your marketing team’s cost on the total cost of customer acquisition.
• Average customer lifecycle duration, giving you information on the gross margin a customer generates from the beginning of the customer lifecycle until the end of the sales process.
• Payback time, this indicates how many months you need to recoup the investment you have previously made in acquiring new customers.
• Percentage of customers obtained by marketing strategies, it is essential to know if it is being profitable to go down the path you are going or if you should change.
• Conversion rate is the star of performance marketing metrics. This rate gives you information on how many people have completed the goal you set out to achieve, whether it’s a pure sale or something else.
• Recurring revenue per month, it will let you know if your business is going forwards or backwards.
• Click-through rate, whether it’s on an ad, an email, a blog post… All of them will tell you if what you’re publishing or promoting is working or not. It’s like taking the temperature of your potential customers. 

At Meeting Dots we are recognised lovers of analysis and metrics because, without them, we wouldn’t be able to penetrate our clients’ markets with complete success. 

After this, will you come over to our dark side and join us in the metrics freakiness to measure your performance marketing? 

Say yes in the comments! And if not, tell us why.