The Must Have Marketing Metrics Every Business Needs to Track in 2024

The digital marketing world is making progress day by day as we enter into 2024. There are many reasons to stay competitive in this era such as your ability to measure, analyse, and observe your strategies. Companies reach out their marketing strategies, the new technologies, customers behaviours and decision making abilities. There are some essential metrics, as mentioned below, that are used as tools for businesses so that they increase their marketing strategies.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) calculates the total cost of acquiring a new customer. It is important to understand the CAC in business development. CAC measures the total costs which are spent on sales, campaigns and other resources. CAC is very important in evaluating the marketing growth and sales efforts.

How to calculate it: CAC calculated by dividing the total marketing and sales costs by the number of acquired new customers.

A business can improve the Customer Acquisition Cost by:
Improving Marketing Channels: Businesses should focus on the marketing channels that give the best return on investment (ROI).
Increase the Targeting: Customer sections can be refined by data assessment
Improve Sales Funnel Efficiency: Delay in sales process can be delayed by converting leads more effectively.

How to Calculate It: CLV can be calculated by multiplying the average purchase value, purchase frequency rate, and average customer lifespan.

CLV= Average purchase× purchase frequency rate × customer life span

CLV metric can be improved by:

Applying loyalty programs to keep customers engaged.
Motivating customers to purchase more expensive or additional products.
Providing services to increase satisfaction and loyalty.
If CAC is increasing without CLV, then a company should reassess its marketing strategies.

Conversion Rates:

Conversion rate is the percentage of visitors who visit your websites and complete the actions like making a purchase, signing up for a newsletter or downloading the new resources. High conversion rates indicate the effective marketing and compelling offers.

How to Measure It:

Divide the number of conversions by the total number of visitors, then multiply by 100 to get a percentage.

Conversion rate metric can be improved by:

A/B testing, it means a company should experiment with different elements of its website to find what is best for your audience. Evaluating the CTAs. Increasing Landing Pages designs that are according to ad content.

Return on Investment (ROI)

ROI is the most important metric which measures the increase in profit of a company marketing investments. It helps the businesses in increasing profits of marketing campaigns and other strategies.ROI uses to understand the financial impact of marketing activities.

How to measure it: ROI is calculated by subtracting the marketing cost from the revenue generated, then dividing by the marketing cost.

ROI can be improved by:

Investing in high performance channels and observing their
performances.
Monitoring campaign performances by using analytics tools that observe the campaigns more efficiently and effectively

Social Media Engagement

Social media engagement measures the effectiveness of your brand connecting with its audience on social platforms. In 2024, social media engagement engage the audiences more effectively.

How to Measure It: Track metrics such as likes, shares, comments, and mentions across social media platforms.

Social media engagement metric can be improved by

Creating contents that are according to your audience and improving interactions.
Parenting with the influencers so that your access and credibility can spread.
Connecting with your followers, audiences and replying to their comments and messages timely.

Click through rate:

Click through rate calculates the percentage of people who open the link, and give a reply after viewing it. CTR is a very important metric for those businesses that run digital ads and email campaigns. A low Click Through Rate observes that your content is not matching with the target audience, but the high CTR indicates that content is according to the audience.

How to calculate it:

CTR can be calculated by dividing the number of clicks with the number of impressions and multiplying by 100.

Click Through Rate can be improved by:

⦁ Testing different ads, contents and creativity.
⦁ Personalise your messages just to make it accordance with the audience.

Website Traffic and Sources:

It is important to follow the website traffic and sources to indicate how audiences are interacting with your websites. This metric identifies the marketing channels such as paid ads, social media, organic search, etc that drive the most traffic.

If traffic progress is not observed from the specific channels, it means a company’s marketing strategies need to be improved. It must be understood which channels run the most qualified traffic. Use some tools to analyse the website traffic and identify the sources. Websites must be improved so that visitors from other channels visit your website more.

Engagement Metrics:

Engagement metrics such as likes, shares, comments and time spent on page is very crucial because it measures the best alignment of your content with your audience. Social media platforms and marketing campaigns are dependent on the engagement metrics. It provides ideas on how you involve your audience in the brand or marketing. High engagement metrics give more opportunities to strengthen the relationship with the customers.

A company can improve the Engagement Metrics by:

Monitoring, like, shares, comments and other connecting metrics on social media. Engaging with the audience through comment section, replying, follow back options, it will increase the audience loyalty and keep them active.

How to utilise metrics for strategic planning:

Evaluating these metrics enables businesses to make decisions and strategically allocate resources. For example, a company which notices high CAC just focuses on improving customer maintenance strategy to increase CLV. Likewise, Tracking Conversion Rates can identify those areas in marketing campaigns or website design which can be improved.