Frequently Used Marketing Metrics

Customer Acquisition Cost

Average marketing and sales cost associated with acquiring new customer. Example: total marketing investment divided by number of new customers.

Customer Retention

Percent of our customers who keep doing business with us. Customer retention rate is calculated per period, for example, annual customer retention rate.

Customer Defection

Percent of our customers who quit doing business with us. Customer defection rate is calculated per period.

Brand Recognition

Percent of target audience who recognize our brand.

Advertising Effectiveness

Sales or profit generated by our advertising activities. Example: $ marginal sales divided by $ advertising activities.

Customer Advocacy

Percent of new customers who were referred by our current customers.

Customer LTV

Average number of years customers do business with us times average annual sales per customer discounted over the years.

Share of Wallet

Our sales compared to total customer purchasing of related products and services.

Sales Trend Metrics

Example: Sales trend by customer segment, sales trend by channel, sales trend by product, sales trend by region, unit volume trend.

Customer Satisfaction

The level of customer satisfaction. Example: percent of customers with above average level of satisfaction, percent of dissatisfied customers, number of customer complaints.

Sales Transaction Metrics

Example: Average order size, average product price.

Innovation and Growth Metrics

Example: Sales from new products, sales from new channels, sales from new market segments, number of new products.