Key Metrics to Measure Marketing Success.

Insights — The success of any marketing campaign hinges on the ability to track, measure, and analyse key performance metrics. Without understanding your marketing campaign's key performance metrics, it's like throwing spaghetti at the wall and hoping it sticks.

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Marketing metrics

Gone are the days of relying on intuition and guesswork for your marketing. In a world where behaviours are tracked and measured, it's about making informed decisions based on solid data.

In this comprehensive article, we delve into the key metrics every marketer should track and understand, including conversion rates, customer acquisition costs, customer lifetime value, return on investment, website traffic, and paid advertising effectiveness.

When you are tracking the right metrics, you can see what works, what doesn't, and where improvements are needed to make your marketing more effective.

Conversion Rate

📖 Definition and Significance

The conversion rate is the percentage of visitors to your website who complete a desired action, such as making a purchase, filling out a form, or signing up for a newsletter. It is one of the most crucial metrics for assessing the effectiveness of your marketing efforts.

📱 How to Calculate Conversion Rate

To calculate the conversion rate, divide the number of conversions by the total number of visitors and multiply by 100. For example, if you had 50 conversions from 1,000 visitors, your conversion rate would be 5%.

📈 How to Improve Conversion Rate

To improve conversion rates, focus on optimising your website’s user experience, ensuring clear and compelling calls-to-action (CTAs), and A/B testing different elements of your landing pages. Personalising content and offers based on user behavior and preferences can significantly boost conversions.

Customer Acquisition Cost (CAC)

📖 Definition and Importance

Customer Acquisition Cost (CAC) measures the cost of acquiring a new customer, including all marketing and sales expenses. It’s essential for understanding the efficiency of your marketing spend and ensuring sustainable growth.

📱 How to Calculate CAC

To calculate CAC, divide the total marketing and sales costs by the number of new customers acquired during a specific period. For instance, if you spent $10,000 on marketing and acquired 100 new customers, your CAC would be $100.

📉 How to Reduce CAC

Reducing CAC involves improving the efficiency of your marketing channels, optimising your sales funnel, and enhancing customer retention efforts. Implementing referral programs, leveraging organic marketing channels, and focusing on high-quality lead generation can also help lower CAC.

Customer Lifetime Value (CLV)

📖 Definition and Importance

Customer Lifetime Value (CLV) represents the total revenue a business can expect from a single customer over their entire relationship. It’s a critical metric for assessing the long-term value of your customers and guiding investment decisions.

📱 How to Calculate CLV

To calculate CLV, multiply the average purchase value by the number of purchases per year and the average customer lifespan. For example, if your average purchase value is $50, customers make three purchases per year, and the average lifespan is five years, the CLV would be $750.

💡 How to Enhance CLV

Enhancing CLV involves focusing on customer retention, upselling and cross-selling strategies, and improving customer satisfaction. Continuously engaging customers with personalised offers and relevant content through retargeting can significantly boost CLV.

Return on Investment (ROI)

📖 Definition and Importance

Return on Investment (ROI) measures the profitability of your marketing efforts by comparing the revenue generated to the costs incurred. It’s a vital metric for assessing the overall effectiveness of your campaigns and making data-driven budget decisions.

📱 How to Measure ROI for Different Marketing Channels

To calculate ROI, subtract the marketing costs from the revenue generated and divide by the marketing costs. Multiply the result by 100 to get the percentage. For example, if you spent $5,000 on a campaign that generated $20,000 in revenue, your ROI would be 300%.

Measuring ROI for different marketing channels requires setting up proper tracking mechanisms, such as UTM parameters for online campaigns and unique phone numbers for offline campaigns. Utilising marketing attribution models can also help accurately assess the contribution of each marketing channel.


Tracking and analysing the right metrics is fundamental to the success of your marketing campaigns. Focusing on these critical metrics helps you gain valuable insights to make informed decisions and drive growth.

Remember, the key to successful marketing lies in data-driven insights, continuous learning, and adaptation.

Author of article: Trish McLachlan, Marketing Manager.

Drawing on over 25 years of marketing experience, Trish provides an in-depth perspective on the fundamentals of growth marketing.