So, you’ve been considering getting your CRM strategies off the ground and into action, but you are wondering what KPI’s and Metrics you should be looking at first. Well, here is a list of some important metrics just in case they could at least be some fuel to get you going.
- Unique Active Registrants (UAR) 30 day Engagement: How many unique customers do you have that have actually been active in the past 30 days. Active could be counted as App Opens, Email Opens, Social Followers or Browser App clicks.
- Asset Engagement Ratio (Marketing Tools): Do you have an Email channel, and maybe a Mobile App driving traffic to your site? Add them up, and bounce them off of your total visits to the site, and you now have a KPI that shows if you Marketing Tools are providing a great benefit to your traffic. Here is a hint, if its lower than 15%, you need to get optimizing. It can also allow you to perform some smart ROI analysis on your asset traffic.
- Owned Media / Paid Media Ratio: Similar to the Asset Engagement Ratio, take all your Paid Media Channel data (PPC, Display, Re-targeting, Blogger Channels, Video), and bounce them off of your Owned Media Channel data (SEO, Direct, Email, Blog Posts) to see how your brand is doing. If your Paid ratio is dominant, it definitely will show you that you are either getting beaten by your competitors, or your “product” is not organically interesting enough.
- 90 & 180 Day Retention Rate: Depending on if you have a strong acquisition strategy or a poor one, you have got to know how engaged you keep them in your on-boarding flows. Find a way to count the amount of visits, opens and influences each of your new customers have within 90 and 180 days of account registration. Notice, you are ONLY counting engagements with this one. A 30 day Retention Rate will get you even closer to understanding if you loose them quickly or further down the line.
- Recency/Frequency of Buyers: For you old school Marketeers out there, this is the closest to RFM that I am going to get. This is similar to 90 & 180 Day Retention, but you are specifically looking for purchases and purchase behavior. Understanding the average days between purchase and Frequency of purchase by channel will allow you to see which channels are underperforming
- LTV (Lifetime Value): This one is similar to ARPU (Average Revenue Per Unit) with a little shift to it in the way that you count the value. Grab total revenue over your customers rolling 12 or 18 months, then divide it by total customers. Once you have the full value, then segment out the customers by frequency to see if your LTV of customers is moving between younger customers, and your true brand adapters for many years. Most typical response is to take these numbers and apply them straight to ROI calculations for media spend, but I would suggest this shows your CRM efficiency even more so.
- Ave Influence per Order: Every customer has a journey before they purchase or convert with you. Some only have 1 digital channel that influences a purchase (customer comes Direct To Site), and some have over 10 (PPC gets them to your site, Email sends out a promotion, they actually convert on a mobile app notification, etc). Find a way to count how many channels a customer has visited your site or your marketing assets by each individual ID. You can then associate the average amount of channels it takes for customers to purchase with you. You’d be surprised to see how many it usually takes. I’ve managed sites that are as little as 3 influences per order, all the way up to 11. Once you get up there, you definitely need to start considering if you are overspending to win customers to your site.