DATA AND METRICS Flashcards
Click-through rate
This is how many people click on a call-to-action link. If the click-through rate is low, marketers may need to consider how to rephrase their call to action.
Reach
This represents how many people looked at your post. You can use it to measure how large your audience is since it counts individual users.
Post reach
This is how many users saw a specific post.
Page reach
This is how many users saw any content posted on a specific page.
Organic reach
This is how many users saw your content without paying for promotion.
Average response time
This is how long you take to respond to feedback. Consider responding to consumers within 24 hours to show you’re attentive to their needs.
Vanity metric
These are metrics that look impressive but have situational value. For example, impressions are often the highest number you see in your post’s metrics, but it’s rarely useful unless measuring brand awareness.
Dark social
This is traffic coming to your website from an unknown source. Often happens when people share links through direct messages.
Paid reach
This is how many users saw content you paid to promote.
Potential reach
This is your total amount of followers across all platforms.
Churn rate
Churn rate is a measurement used to calculate customer retention and is significant for recurring revenue companies. It helps companies identify how many customers they lose in a given time period.
To calculate churn rate, you divide the number of customers lost during a time period by the number of customers you had at the beginning of the time period.
Customer acquisition cost (CAC)
Customer acquisition cost is exactly what it sounds like — the cost associated with turning a lead into a customer
CAC=sales and marketing expense/number of new customers
What is a good customer Acquisition Cost? A Good Customer Acquisition Cost varies by the industry and tactics used. But a good way to benchmark your CAC is by comparing it to Customer Lifetime Value (also known as LTV). It is said that an ideal LTV to CAC ratio is 3:1 .
Cost per lead (CPL)
Cost per lead refers to the amount spent on acquiring a lead. This cost is factored heavily into CAC. The most common use case for cost per lead can be found in paid advertising where there is a direct correlation between the amount of money you are spending in something like Google Ads, and the number of leads you are generating from that spend.
Key performance indicator (KPI)
Key Performance Indicators are used to track progress towards marketing goals. By setting the right KPIs for your business, you can continuously evaluate performance and make adjustments to optimize your marketing strategy.
Leading performance indicators (LPIs) and tactical performance indicators (TPIs) can help you understand which specific efforts are propelling you toward your goals.
Customer lifetime value (CLV)
The Customer lifetime value is the predicted net profit associated with the future relationship with that customer.
Customer Lifetime Value = (Customer Value* x Average Customer Lifespan)
*Customer Value = (Average Purchase Value x Average Number of Purchases)
