Metrics, models and tools that will make your work easier.
CR (Conversion Rate) – conversion rate. This is the percentage of users who performed the desired action on the site: placed an order,
installed an application, filled out a form.
AOV (Average Order Value) – average basket. One of the indicators that helps assess the profitability of marketing activities.
RPV (Revenue per Visitor) – revenue per user on the site. One of the main metrics in digital marketing.
GRP (Gross Rating Point) – a collective assessment of the effectiveness of an advertising campaign list of changsha cell phone numbers which takes into account all the displays of ads to potential customers in a given period. It is calculated as the sum of the ratings of individual ads. If the ad was watched by 50% of viewers on the first day and by 20% on the second, the GRP for two days will be 70 percentage points.
BR (Bounce Rate) – bounce rate. In Google Analytics, a “bounced” session is considered to be one in which the user has not performed any other action than entering the page. If the bounce rate on a page is 65%, it means that 65% of users
leave the website without visiting any other subpage.
LTV or CLTV (Customer Lifetime Value) – the profit a company receives by acquiring one customer. In other words, LTV is a financial measure of how valuable one customer is to a company.
To determine the LTV of customers acquired in a selected period, you should subtract the expenses incurred to acquire or retain them from the total income they brought in, and divide the result by the number of customers.
This metric will change over time. If your product has a high repeat purchase rate, you need to monitor the change in LTV for a selected group of customers at a set frequency – for example, once a month or once a quarter.
ROMI (Return on Marketing Investment) – return on marketing investment. This indicator answers the question of how many zlotys will each zloty bring, invested in marketing.
CPC (Cost per Click) – the price of one click when buying online advertising. An
important indicator when analyzing the effectiveness of paid online campaigns.
CAC (Customer Acquisition Cost) – the cost of acquiring a customer. These are the expenses incurred to acquire each new customer. This includes not only media purchase expenses digital marketing in 2032: what do industry leaders predict? but also marketing staff salaries, necessary software expenses and all other costs related to marketing.
ROAS (Return on Ad Spend) – return on advertising investment. Another indicator useful for analyzing advertising expenditure. While ROMI allows you to assess the overall effect of marketing activities, ROAS is useful for analyzing individual campaigns or communication channels. If ROAS is higher than 100% – advertising is effective, if lower – the company spends more on advertising than it earns.
SOM (Share of Market) – market share. An indicator assessing the company’s position in the market in relation to the competition.
Churn rate – the percentage of customers who have canceled a company’s services or stopped purchasing its goods in a given period.
CTR (Clickthrough rate) – the percentage of users who clicked on the ad and went to the website.
ARPU or ARPC (Average revenue per user / customer) – revenue per user or customer in a selected period.
CPM (Cost per mille) – price per thousand impressions. This universal metric allows you to compare the cost-effectiveness of different advertising spaces on the web.
A/B testing – a marketing research method that compares two versions of the same “product” (website, advertising banner, advertising content) that differ only in one element. This may be font size, text color phone database image or its location. The main goal is to choose the version that will increase the conversion rate .
Boston Consulting Group (BCG) matrix – a classic portfolio analysis method that takes into account demand and the place that the product occupies on the market. It was created by specialists from the American consulting company Boston Consulting Group in 1969.
According to this concept, all products or services of a company can be divided into four groups:
- “stars” – large market share and high sales growth rate (over 10%)
- “cash cows” – large market share and low sales growth rate (below 10%)
- “dogs” or “balls and chains” – low market share and low sales growth rate
- “question marks” – low market share and high sales growth rate
The main task of the BCG matrix is to create an ideal assortment program in which the largest share will be held by proven products – those that can ensure profits – “stars” and “cash cows”, and new products with an interesting perspective – “question marks”; and “dogs” or “balls and chains” will be gradually withdrawn from the market.
The Laddering Method is a technique of in-depth interviews in marketing research that reveals the true motivation of customers . Beginning with questions about product features, the interviewer gradually moves on to talk about the buyer’s values and needs that he or she hopes to fulfill with the product. This method is based on the means-end chain theory.
Neuromarketing – is a direction of marketing research based on the achievements of neurophysiology and psychology. It examines the reaction of the consumer’s brain to various advertising stimuli.
Eyetracking – eye tracking, one of the neuromarketing tools. It uses technology to track the movement of the user’s pupils while viewing a website, product label or advertising banner. It helps to identify visual elements that attract the eye .
SMART – the concept of formulating goals in the field of planning. A correctly formulated goal should be:
- S specific – specific
- Measurable
- Achievable – achievable
- Relevant – important
- Time -bound – time-bound
VALS (Values and Lifestyles) – a psychographic segmentation method created in the late 1970s in the United States. It is based on two main criteria: motivation to buy and personality traits.
Types of motivation:
- Ideals : the client makes a choice based on his or her values and principles
- Achievements : The customer makes a choice to impress someone or communicate their success
- Self-expression : the customer chooses goods that emphasize his personality or social position
Depending on their set of personality traits, consumers can be divided into eight groups:
- Innovators: active people, supporters of new concepts and new technologies . They prefer exclusive and niche products and services, constantly looking for new experiences. Sophisticated and hard-to-find products are for them a determinant of taste, independence and personality , and are not treated as a document of status or power.
- Thinkers : mature, aware, content with life.
- Achievers: motivated by a constant desire to achieve , they have a high level of commitment to both their careers and their private lives. They prefer products and services that can attest to their status and success – they often reach for prestigious , high-end products .
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Sensation Seekers: motivated by the possibility of self-expression,
- optimistic about the world and new possibilities. They choose products and services that are fashionable – they want to look good in the eyes of others, they spend a large part of their earnings on fashion and entertainment .
- Believers: Ideal -driven , traditionalists with a defined opinion and course of action regarding family, religion, community, or nation. They demonstrate a high level of loyalty to traditional , well-known brands that carry with them known, structured values.
- Aspiring: motivated by achievements , focused on opinions and a sense of acceptance from others, trends. They choose stylish products, based on the latest trends, imitating “high-end” products. Shopping is a social activity for them, they are impulsive consumers .
- They prefer products that are practical , functional, and fairly basic. They don’t overpay.