3 marketing metrics to stop tracking – and what to measure instead

In our increasingly data-driven business environment, marketers and data analysts often collaborate to create metrics dashboards to drive spending, channel management, and strategies for the year.

Unfortunately, most teams end up tracking outdated metrics that aren’t specific to marketing KPIs (key performance indicators) or that don’t provide meaningful information about marketing’s contribution to the pipeline and revenue growth.

Marketing teams need to be agile and agile to add as much value as possible to the organization as a whole, so they don’t have time to hunt for metrics that aren’t adding value. Here are some examples of retirement-ready marketing metrics and suggestions for better metrics to replace them.

Useless Marketing Metric #1: Lead

Leads, whether raw, marketing, or sales, are a useless metric for small businesses to track alone or even in conjunction with many other metrics.

Marketing form fillers are nothing more than a growing interest and are just the beginning of a potential customer’s journey. Leads earned from these forms can be misleading if you don’t notice where the dollars are starting to fall.

What to try instead: Money Pipeline by Channel

Why it’s better: Rather than tracking any number of leads per day that may or may not convert, pipeline dollars tracking by channel lets you see how the dollars you invest contribute to real profits.

Useless Marketing Metric #2: Cost Per Lead (CPL)

CPL tracking is a great way to invest in low-cost lead sources. Of course, you’re probably tracking closed / won conversions too, but that’s not the big picture. You also need to understand what it costs to acquire new customers, and CPL and conversion rates are only part of that equation.

What to try instead: Customer Acquisition Cost (CAC)

Marketing + sales costs / number of new customers = customer acquisition costs

Why it’s better: Regardless of cost or conversion rate, leads don’t add value to your organization until they’re converted. We look for the true cost of acquiring a new customer, balanced with the customer’s lifetime revenue.

Useless Marketing Metric #3: Vanity Metrics

While email clicks, site bounce rates, and first-page keyword rankings can all be important for the marketing team to optimize programs, there’s no reason to waste time on “interesting” information like “Like” on Facebook, they are not added directly to the pipeline and revenue.

Its okay to maintain overall momentum for some individual channel performance metrics, but shallow social media metrics shouldn’t guide digital marketing efforts.

What to try instead: Customer lifetime value (CLTV or CLV)

The average revenue per customer x Average customer lifetime = customer lifetime value

Why it’s better: Calculating lifetime customer value as a marketing metric provides a beacon to industries and verticals that provide profitable, long-term, revenue-enhancing customers. Consider this comparison which analyzes vanity and vanity statistics. CLTV. What offers the most value?

The role of the marketing team is to attract, retain and engage customers. This process starts with building the pipeline and ends with the closed revenue from marketing strategies, programs, and activities. Keeping track of the correct marketing metrics is critical, especially for lean and efficient teams.