As a business owner, lead generation marketing is an essential practice that helps keep your company afloat. If you want to promote your business in a meaningful way online, you need to implement careful marketing strategies and then use analytics to track and measure your success. Failing to keep up with how your prospective buyers act online – the pages they spend the most time on when visiting your site, and the products they looked at while there – will put you at a disadvantage in the marketplace.
However, measuring how leads engage with your content is only the tip of the iceberg in terms of analytics. There is a number of other benchmarks that you should set, and the data you compile can help tailor your future online marketing efforts.
Here are two critical metrics to be aware of, and how you can use the stats at your company.
1.) Average Revenue Per User (ARPU) – This measurement shows how much each customer buys from you every month. In essence, it’s the total revenue divided by your active subscribers, and it plays an influential role in discovering your chance of hitting desired revenue targets. When you focus on ARPU, you can gain a better understanding of which aspect of lead generation you need to work on in order to increase revenue streams and you can track your success by subscribers and active customers.
2.) Lifetime Value (LTV) – Lifetime value is the average revenue a subscriber will generate over the course of the business-to-customer relationship. Essentially, it is a function of ARPU and persistence – how many months a buyer remains a paying customer. The higher the LTV of a customer, the more profit you garner, which can be later allocated to lead acquisition tactics.
If you want to see your business expand and grow into a thriving organization, make sure you know who your most active customers are, and exactly how much money they funnel into your products and services in a month and over the course of their relationship with your company. While these metrics merely provide a general picture of how you can achieve success, they set attainable benchmarks and give you goals to work toward. Consider implementing these metrics into your development system to determine where improvements in your marketing can be made.
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