The Most Important Marketing KPIs You Must Track

In marketing, there are some KPIs (key performance indicators), that you must track to ensure that what you’re doing is performing, what to keep doing, what to avoid, and what to change.

In other words, if you’re not going to track them, then you’re going to struggle to get the results you want as you won’t know what works and what doesn’t work.

Here’s an overview of what marketing KPIs you have to track if you want to be successful.

  1. Customer Acquisition Cost (CAC)
  2. Average Cart Value (ACV)
  3. Return On Investment (ROI)
  4. Customer Lifetime Value (CLV)

So, are you ready to begin? If so, let’s dive in…

Customer Acquisition Cost (CAC)

The customer acquisition cost is one of the most important marketing KPIs you must track.

That’s because its number is going to determine whether or not your marketing works. Customer acquisition cost is the amount of money you spend to get a new customer.

Based on your strategy, there is going to be a difference between how high you want the number to get.

However, in general, you don’t want the number to be higher than the profit margin of the product or service that they buy. If that’s going to happen it means that you’re losing money.

So, what are some of the ways to lower the customer acquisition cost?

Well, first off you want to target the right audience (yes. even with your content) and you want to retarget your audience.

The most money you’re going to spend is by advertising to a cold audience. When you retarget people who follow you on social media, read your blog, or are on your email list the cost is going to go down like crazy as they already know you, like you, and likely trust you.

Whereas persuading somebody who never heard of you to do something is way costlier.

Also, never forget to show ads only to the right people.

Otherwise, it’s like selling an anvil to a stock broker or a steak to a vegan. You won’t get any results and if you will, the CPA is just going to be massive.

But there is another marketing KPI that you have to track if you want to be successful and that is actually going to determine how high the CAC can be.

Average Cart Value (ACV)

How high the average cart value is going to be is going to determine how much you can spend on ads and in the end, it is going to determine how high the CAC is going to be.

This is why it is such an important marketing KPI to track as it is going to determine how much money you can spend.

So, how can you possibly increase the average cart value besides just selling a more expensive product?

That solely depends on the business model that you have.

If you are an e-commerce site, you might as well want to start recommending other products to buy whenever somebody taps the “add to cart” button.

You also want to have some additional product recommendations ready in the cart.

It’s important that those recommendations are relevant to the things they added to the cart. If they’re not, nobody is going to get them.

But if you do everything right, you’d be surprised at how many people would actually get the recommended products or services and how high your profits are going to go.

When you have a sales funnel, the way to increase this marketing KPI is going to be a bit different.

Instead of just recommending them products and services, you are going to use “one-time offer pages”. Here is an example of how an OTO page can look like:

An example of an upsell page

This page is where your dream customers are going to be sent to after they purchase (instead of just thanking them) and you’ll ask them to buy a relevant product or service that is going to help them get better results.

After that, they have two options.

First, is to say “yes”. When that happens you will send them to another OTO page where you are going to present them with another one-time offer.

If they accept that one as well, they’ll just go to the thank you page and you will thank them for the purchase.

If not, then instead you will redirect them to a downsell page.

That page is going to do the same as an upsell page but instead of selling a relevant upsell, it is going to sell a cheaper downsell alternative to what you offered them on the one-time offer page.

This will make a lot of people who said “no” still buy, which is obviously going to skyrocket your ACV.

How cool is that?

But now, let’s move on to another extremely important marketing KPI that you have to understand.

Return On Investment (ROI)

Return on investment is another really important marketing KPI that you have to know. Whenever you want to run an ad campaign or invest in something you should track your return on investment.

Return on investment is basically how much money you earned as an extra percentage of the money you invested.

For example, if you spend $100 and you get $112 back, your ROI is 12%. If you spend $100 and you get $168 back, your ROI is 68%.

It’s all the money you earned as an extra on your investment.

And tracking this marketing KPI is really important as it is going to tell you whether or not your marketing is working and if you should keep on doing what you are doing.

So, always track it, and now let’s move on to another of the marketing KPIs that you should track…

Customer Lifetime Value (CLV)

Everybody knows that once you acquire a customer, they are not likely just going to abandon the ship after they purchase.

If you sell a great product or service and you deliver, they are likely coming to buy your stuff again and again.

And that’s when customer lifetime value comes in.

It is going to determine what is the average amount of money a customer is going to spend with you from the moment they become a customer to the moment they make the last purchase.

For example, if you’d be a car salesman and on average a customer buys 4 cars before they stop doing business with you, and the average value of the car is $15,000, then the CLV is going to be $60,000.

Get the point?

It is really important to know it because, in the end, it is fine if you are going to lose money to acquire a customer on the front end when you start making money with them on the back end.

Published by filipkonecny

Filip Konecny is an elite entrepreneur, marketer, and author of 5 marketing books who helps tens of thousands of entrepreneurs and marketers in over 80+ countries get new customers, grow their businesses online, and make their voices heard. He has reached over 8,000,000+ entrepreneurs, built a following of tens of thousands of people, and been featured and written for some of the top marketing blogs like Jeff Bullas,, and Social Champ. Filip has entrepreneurship in his heart and believes that if you sell a product or service that helps people and makes this world better, it’s your DUTY to make your voice heard, sell it, and change the world. And he’s here to show you do that.

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