Marketing Metrics Tool

When we advise a client, we try to ensure we are addressing the metric variables of their business development and not providing just the usual suspects in advice.

Use the tool below to test what small improvements in different factors can do to your bottom-line... you might be surprised!

These ‘metrics’ are four areas of variables that improve business... Acquisition, Retention, Leverage and Transaction...

Acquisition

We can affect two metrics through various strategies... we can affect your qualified targets volume and we can affect your conversion rate.  The metric we use looks like this...

Qualified Targets Volume x Conversion Rate = New Customers

Retention

We can affect how many older customers you keep, your retention-rate, through a lot of initiatives.  Old business kept costs a lot less than new business one.  The metric looks like this...

Existing Customers x Retention Rate = Kept Customers

Leverage

We can affect how successfully you cross-sell, what customer referral schemes you have in place and your customers’ contribution to things like testimonials and case studies.  All of these help you get more per customer.  The metric looks like this...

Cross-Sell + Referrals + Assets = Customer Leverage

Transaction

We can affect price, your transaction bundling (how well you up-sell) and your transaction frequency (how often your customers buy from you).  If we can lift these, then a given buying event is worth much more.  The metric looks like this...

(Price + Bundling) x Frequency = Transaction Value

Piecing It Together

When you place these together, it looks like this...

To consider how well your own marketing and lead generation is working, ask yourself questions like these... they’ll help you with your own ideas-generating...

• “What can I do to target more prospects?”
• “Where can I find prospects more qualified, more likely to convert?”
• “What can I do that’s more likely to get a response?”
• “Looking at existing marketing efforts that are locked in, what can I do to make those better and more likely to get a better conversion rate?”
• “What do my customers want that I’m not providing and which would keep them longer?”
• “What do my customers hate?”
• “How can I test a price rise?”
• “What can I add to the average order a customer places?”
• “What can I do to look for other opportunities within an existing customer?”

There are other questions like these.

To learn more about Marketing Metrics, contact us today.