Digital marketing is measurable and this is one of its greatest advantages, as quantifying and evaluating market performance can put the company ahead of the competition if the metrics are calculated correctly.
Any and all measures that can be measured — actions, investments, behaviors, campaigns — should be of interest to marketing to analyze numerically. The marketing team needs to know the metrics in depth and how to apply them continuously so as not to waste analysis time.
Not all metrics will be applicable to the business or relevant at the time, therefore, using KPIs and identifying the most important ones in line with the objectives that the company intends to achieve, helps to optimize results, based only on those that deserve to be computed.
Revenue and sales metrics
There are several types of metrics and we will start loan officer email list with those that measure revenue and sales results.
ROI — Return on Investment
Return on Investment or ROI is the comparison between the money invested in marketing actions and efforts and what was received or lost by the company at the end of a campaign, that is, it is the metric that measures whether the company's result is profit or loss.
The ROI formula is simple:
ROI = revenue-cost of investment/cost of investment
Let's understand this through a practical example. If the company spent R$5,000.00 on the marketing strategy and obtained R$7,000.00 in revenue, just calculate to find out the result:
ROI = 7,000–5,000/5,000
ROI = 2,000/5,000
ROI = 0.4
The company's return would be 0.4, which corresponds to 40% of the investment value.
CAC — Customer Acquisition Cost
How much does the company spend to acquire a new customer? Even if the campaign is successful overall, it is possible that the individual acquisition cost is high, which suggests a review of strategies.
The results also help to define the budget and marketing strategies, if an unsatisfactory result is identified.
The CAC formula is defined by: