Marketers know measurement matters. Performance data informs our strategies and campaigns, and we’re constantly on the lookout for the next clever idea or initiative to deliver on those KPIs. The problem? Determining which numbers to focus on. Too often, reporting gets bogged down by everything from site traffic to annual revenue — but fails to deliver insights about the customers themselves.
While click rate and page views are key pieces of any marketing puzzle, customer-based data should be at the heart of your analytics — and your decisions. So take time to focus on the following customer KPIs:
Customer lifetime value
We’ve said it before and we’ll say it again, customer lifetime value (CLV) is the most important KPI you can and should track. Most marketers don’t track this metric because their platform can’t provide the right data, but this data point is critical.
CLV goes beyond current customer spending to predict expected future value. CLV tells you what your customers are likely to spend, giving you a predictive glimpse into future profits. You can then tap into CLV to target the customers who have the most engagement (and spending) potential. This strategy can make a big impact on your bottom line, so make sure you have a marketing partner that is able to help keep tabs on CLV.
Net Promoter Score
Also known as NPS, the Net Promoter Score asks how likely a customer is to recommend your product or service to others. And it’s not possible to predict or direct the customer journey, so marketers need to find ways to transform their customers into evangelists who will champion their brand.
Calculated by finding the percentage difference between detractors (those who won’t advocate for your brand) and promoters (those who will), this KPI provides a great overview of your customer experience (CX) performance, as well as a healthy reality check. If your NPS isn’t quite where you want it yet, don’t despair. NPS is an overarching statistic — dig deep to find the pain points that are hurting your CX (slow site speed, bad customer service, etc.) and make the necessary adjustments.
Customer repeat rate
Once customers are in the door, your goal is to keep them coming back again and again — and you need to measure that. Adding customer repeat rate to your list of KPIs keeps you ready to fine-tune your loyalty strategy with unique elements like gamification. A high customer repeat rate ensures your brand truly sticks with your customers and delivers a top-notch experience worth repeating.
Old Chicago Pizza and its OC Rewards loyalty program is a great example of a brand doing it right by focusing on customer engagement. Its interactive World Beer Tour drives repeat visits among its most engaged customers by challenging guests to try 110 varieties of beer in exchange for points and eternal glory in the “Hall of Foam.” In only four years, more than 120,000 customers have completed the tour, and the program has increased overall revenue by 30%.
When it comes to measuring the success of your campaigns, site traffic and email open rates are just the beginning. Next time you wonder how to prove your ROI, don’t forget to dive into customer actions. Contact Cheetah Digital here to unlock your brand’s customer lifetime value, Net Promoter Score, and customer repeat rate — as well as other KPIs that matter most to your brand.