Analytics are key to growth, know your metrics!
As somebody who wants to see your business grow, you need to track your key performance indicators (KPIs) to make informed decisions and optimize your performance. However, with so many metrics to choose from, it can be overwhelming to figure out which KPIs to track. In this blog, we'll discuss five KPIs that you should always be tracking on your analytics dashboard.
1. Website Traffic
Website traffic is one of the most important KPIs that you should track. It gives you an overview of how many people are visiting your website, where they are coming from, and what pages they are viewing. By tracking your website traffic, you can identify which marketing channels are driving the most traffic to your site, and which pages are generating the most engagement.
2. Conversion Rate
Conversion rate measures the percentage of website visitors who complete a desired action, such as filling out a form, making a purchase, or subscribing to your newsletter. By tracking your conversion rate, you can identify which pages on your website are most effective at converting visitors into customers, and which pages need optimization.
3. Customer Acquisition Cost (CAC)
(CAC) measures how much it costs to acquire a new customer. The calculation of CAC takes into account all of the costs associated with acquiring a customer, including marketing and advertising expenses, sales commissions, and other costs related to generating leads and closing deals.
Knowing your CAC is important because it allows you to measure the effectiveness of your marketing and sales efforts. If your CAC is high, it may indicate that you need to optimize your marketing and sales processes to reduce costs and improve conversion rates. Conversely, if your CAC is low, it may indicate that your marketing and sales efforts are performing well and that you can invest more in those areas to drive growth.
Ultimately, understanding your CAC is critical to making informed decisions about how to allocate your marketing and sales resources and optimize your customer acquisition strategies.
4. Customer Lifetime Value (CLV)
CLV measures the total amount of revenue that a customer will generate over their lifetime as a customer. By tracking your CLV, you can identify which customer segments are most valuable to your business and optimize your marketing and sales strategies to retain and upsell those customers.
5. Churn Rate
Churn rate measures the percentage of customers who cancel or unsubscribe from your products or services over a specific period of time. By tracking your churn rate, you can identify which products or services are causing the most churn and take corrective actions, such as improving product quality or providing better customer support.
In conclusion, tracking the right KPIs is essential to optimizing your business performance. By including website traffic, conversion rate, customer acquisition cost, customer lifetime value, and churn rate on your analytics dashboard, you can gain valuable insights into your business and make data-driven decisions that will help you achieve your goals.