22 November 2024
10 Business Metrics Every Marketing Agency Should Track
Success in marketing is about more than creativity; it’s about measurable results. Tracking the right business metrics allows agencies to evaluate performance, optimize strategies, and achieve sustainable growth. This blog covers the top 10 metrics every agency should prioritize in 2025.
The Top 10 Metrics to Track
Customer Acquisition Cost (CAC)
Measures how much it costs to acquire a new customer.
Formula: Total Marketing Spend ÷ New Customers.Customer Lifetime Value (LTV)
Calculates the total revenue a customer will generate over their lifetime.
Formula: Average Purchase Value × Purchase Frequency × Customer Lifespan.Return on Ad Spend (ROAS)
Evaluates the efficiency of your ad campaigns.
Formula: Revenue from Ads ÷ Ad Spend.Marketing Efficiency Ratio (MER)
Provides a holistic view of marketing efficiency.
Formula: Total Revenue ÷ Total Marketing Spend.Conversion Rate
Tracks the percentage of visitors who take a desired action.
Formula: (Conversions ÷ Total Visitors) × 100.Churn Rate
Measures how many customers stop using your service.
Formula: (Customers Lost ÷ Total Customers) × 100.Net Promoter Score (NPS)
Evaluates customer loyalty by asking how likely they are to recommend your brand.Revenue Growth
Tracks how much your revenue has increased over a specific period.
Formula: (Current Revenue − Previous Revenue) ÷ Previous Revenue × 100.Cost Per Lead (CPL)
Measures how much it costs to generate a new lead.
Formula: Total Campaign Spend ÷ Number of Leads.Lead-to-Customer Conversion Rate
Tracks how many leads turn into paying customers.
Formula: (Customers ÷ Leads) × 100.
Tools to Track These Metrics
1. Octify
Centralizes all your data, providing real-time insights into critical metrics like CAC, LTV, and MER.
2. Google Analytics 4
Tracks customer behavior on your website and app.
3. HubSpot
Monitors lead generation, nurturing, and CRM performance.
Track the Metrics That Matter with Octify
Tracking the right metrics is the first step to agency success. Use Octify to centralize your data and focus on the metrics that drive growth.
Sign up with Octify today and start optimizing your performance.