Developing a marketing plan is one of the first steps in bringing your business to more consumers. A marketing plan will introduce your business to the masses and show what it can do for them. However, it is important to keep in mind what you would like to achieve with your marketing plan. Your ROI or return on investment metrics will help you to determine if your marketing plan is beneficial. Throughout this guide, we will review many of the key metrics that determine the success of your marketing plan.
Cost per lead
Your cost per lead is the cost of your marketing plan divided by the number of leads your business obtains. However, it is key to indicate what you consider a lead. It can be different for every business. A lead can be a consumer buying a product, signing up for a subscription, and many more things. It is important to determine if the amount of money you are spending on your marketing plan is worth it for the number of leads you obtain. To determine its success, you must determine how much a single lead is worth to your business. If the number of leads you obtained is above the threshold you determined, your campaign will be a success. If not, then it is best to see what can be changed to increase performance. It is not in your best interest to completely shut down your efforts.
Cost per acquisition
Much like CPL, cost per acquisition (CPA) shows the new consumers that interact with your business. However, one major difference is that the CPA is a sale. So, these are more significant than a lead. Acquisitions are capital going back into your business; this directly shows whether your marketing plan is successful. The amount of money gained from your efforts must meet a certain level that you have previously determined. If this level is obtained, then you know that your marketing plan is being used correctly and to your advantage. CPA is sometimes seen as a stronger metric than CPL, as it directly translates to actual dollars.
Customer lifetime value
LTV, or customer lifetime value, is a metric that shows the projected amount of money a single consumer will spend on your business throughout their lifetime. This is the amount of predicted revenue from one acquisition. This is a crucial metric to follow as it shows success not just in the short term but also in the future. If this number is high, then you know that this consumer is likely to frequent your business. This will then translate to more sales as they are likely to tell their family and friends about your business by word of mouth. Word of mouth is one of the strongest ways to convey the trust of a business to others. If consumers tell others about your business, then they will put their reputation on it, and their opinion will be trusted by others.
Cost per click
A major piece of a marketing plan is your presence on the web. One of the main ways to be seen on the internet is to use Google ads to advertise your business to specific people on the internet. Your business will put out advertisements on Google to show your business to consumers. A click on your ad will generally take them to a specific place on your website. A click translates to the intent of a purchase. So, the cost per click you should aim for should be as low as possible.
This will translate to each consumer that clicks on your ad not costing your business a lot of money. The higher your CPC, the more money you are spending on your ads, and the less revenue you will gain from the ads. A CPC of about $1 is ideal as it does not cost your business a significant amount of money and resources and will generally lead to a sale, which is the end goal of your marketing plan.
Unique monthly visitors
The number of visitors to your business’s website is a great metric to use when it comes to viewing the success of your marketing plan. A high number of visitors to your business’s site is great to see. This shows that there is high interest in what you have to offer and might be interested in making a purchase. Visits will not always lead to sales, but it is worth the effort of your website to show them how your business differs from the competition and why they should make a purchase.
When developing a marketing plan, it is crucial to know what you would like to achieve. There are many metrics that you can use to determine whether your plan is a success, but they can be confusing and exhausting to learn. Leave the hard work to the experts. Schedule a consultation today to start a marketing plan that will take your business to the next level.