Check out our Top 5 Marketing KPI‘s to track when starting your own business
Money in the bank may help you rest easy, but what should you be measuring as far s healthy marketing performance to ensure long term success?
Below are a few we suggest making sure you track when starting out as a entrepreneur to ensure healthy growth…
CASH RUNWAY
Cash runway measures how long your marketing budget will last at the current burn rate
cash balance / monthly burn rate = X months cash runway
Uses burn rate and cash balance to define how long your money will last. This shows how soon you'll come up with new capital!
CUSTOMER ACQUISITION COST
The cost of gaining a single customer often turns out to be higher than expected, causing many stat ups to fail.
TTL marketing expense / # new customers = £ CAC
How much you spend to gain new business. This helps you figure out if marketing costs are too high.
REVENUE BY TRAFFIC SOURCE
Identifying where marketing budget should be spend also provides important consumer insights and trends.
Use a dedicated insights tool like Google Analytics
% of revenue coming from different sources (social, search, paid, etc.). This helps you focus on your most valuable marketing channels.
ADVERT CLICK THROUGH RATE
An easy one to track, using click through rate measures creative campaign success across different audience sizes with one clear metric.
Clicks*100 / Impressions = % click through rate
% of audience who click an ad after seeing it. This shows how appealing your ad is and whether you might need to change creative or copy.
MARKETING RETURN ON INVESTMENT
Your marketing efforts must return more revenue than you spend generating those sales.
(Marketing revenue - marketing cost)*100/marketing revenue = % MROI
The amount profit that comes from your paid marketing efforts. You have to get more return than you put in for paid marketing campaigns, it's that simple.
Use a mix of short and long term metrics to monitor your business’ growth, scale what is working and discard the rest! 🎯
