Segmenting customers is critical. When organizations segment their customers, they can identify which are most likely to make a transaction and predict their lifetime value vs others. Segments have targeted messaging, retention, and customer loyalty programs, as well as budget allocations. 

• Geographic
• Behavioral 
• Psychographic
• Demographic

Understanding your customer acquisition cost (CAC) is at the heart of growing your business in a scalable and profitable way. This is powerful when evaluated by marketing channel to determine how to allocate budget.

CAC= Total Cost Of Marketing & Sales/ # of Customers Acquired 

A customer acquisition is unprofitably only if CAC exceeds CLV. For most businesses, your CLV to CAC ratio should be 3:1 for each marketing segment. If you spend too much (e.g. 1:1 ratio), acquiring those customers won’t be profitable. But if you spend too little (e.g. 7:1 ratio), you will be missing out on profitable customers whose acquisition cost is above your current bid cap.

A marketing qualified lead simply refers to a lead that is ready to be given to your sales department for outreach. By identifying what a qualified lead looks like for your business—whether through form submissions, website behaviors, or some other action—you can track the steps that lead to the contact’s readiness for sales, extracting the effective points in the marketing and sales pipeline.

This is a simple KPI that allows you to measure the progress of your business in generating sales revenue. With several points of data, you can determine your business’s growth trends and projections. It’s valuable on both a top-level view, as you are tracking your business’s overall success, as well as on an individual basis, as you can apply it to your team members to develop personalized goals. This is a great way to continue boosting your company’s growth and, by extension, its revenue.

Customer lifetime value is one of the most important business metrics. It provides a picture of the business long-term and its financial viability. High CLV is an indicator of product-market fit, brand loyalty, and recurring revenue from existing customers. It is recommended that businesses monitor and optimize customer lifetime value if they are looking for steady growth.

CLV= (Avg Sales Value * Avg Transactions * Retention Time Period) * Profit Margin

Customer retention measures your business’s effectiveness in retaining customers over the long term. The adage states that engaging new customers costs more than engaging current customers; therefore, you’ll want to focus on this key performance indicator to help sharpen your business’s reputation, customer service process, and overall customer experience. At what stages after a customer exists are you losing repeat business? Where can you improve your efforts?

First, you need to understand the period to use.

CRR= (# end of the period - #aquired during) / # at the beginning of period)

Customer churn is an important metric to track because lost customers equal lost revenue. If a company loses enough customers, it can have a serious impact on its bottom line

• Customer churn analysis helps businesses understand why customers don’t return for repeat business.
• Churn rate tells you what portion of your customers leave over a period of time.
• It’s often useful to look at churn by product, region or other granular factors.

CCR= (customers at beginning of period - customers at end of period)/customers at beginning of period

• Customer Touch Frequency/Mediums/Cadence
• Open/Click/Conversion Rates
• Campaigns/Content
• Discounts/Offers
• Lapse Periods With Communication Blackouts

Return on investment, or ROI, allows you to measure how much revenue is being generated by a specific marketing campaign, as compared to the costs of running the campaign. ROI may be considered the most important indicator to monitor and assess.

Take revenue or profit growth from that business or product line, subtract the marketing costs and then divide by the marketing cost