7 metrics of effectiveness of marketing campaigns

Marketing works when it brings in more money than it spends. This is a classic rule: "buy low, sell high". Therefore, you should focus on metrics that are directly related to profit generation to measure the effectiveness of your advertising investments.

Marketing effectiveness can be measured by various metrics that help evaluate the results of certain marketing efforts. We've collected the most common metrics for advertising campaigns.

To optimise your advertising activities, plan the actual costs of each traffic source and each marketing campaign. Data collection is a time-consuming process, especially when you have a large number of sources. Integration with the largest advertising platform Google Ads will allow you to collect data in one click.

Money earned is revenue, turnover minus cost is profit

Some businesses primarily track turnover, i.e. the amount of payments from customers. It is worth tracking operating profit - turnover minus the cost of goods. This is how you calculate the net profit, without the cost of purchasing the goods. However, you should not include the costs of renting a warehouse, store, or paying salaries to sellers in your calculations - these data should be taken into account when summarising the overall financial results.

ROI is a business performance indicator that establishes the difference between income and expenses. It shows how much money invested in marketing campaigns is effectively paid off. Revenue divided by expenses is measured as a percentage. If a source has an ROI < 100%, you are losing money. You should consider the most costly marketing channels. When you understand which advertising tools eat up most of your budget, you can reduce them. To do this, determine the actual cost of attracting one customer and the theoretically possible amount you can afford to pay for it.

This metric measures the number of potential customers who have expressed interest in your product or service and provided their contact details. You can measure the number of leads using the Google Analytics service. It provides information about their behaviour on your website. This tool is effective if you have a mechanism for collecting visitors' contact details. 

You can also do this with the help of an accounting program that records the number of users, their contacts, and actions on your website. 

For example, in CRM Torgsoft, you can keep records of customers, form customer bases and the history of interaction with them, analyse and create marketing campaigns for different consumer groups, as well as record sales and calculate revenues and profits. In addition, the accounting program allows you to integrate with an online store or marketplaces and with business services, such as mass mailing. This is possible thanks to the built-in algorithms that automate the work of the store. 

№3. Lead conversion

№4. Cost per Acquisition (CPA)

№5. Cost per Contact (CPC)

№6. Customer Lifetime Value (CLV)

№7. Conversion rates at each stage of the sales funnel