Just as important as having a great inbound marketing strategy is knowing what metrics you need to be tracking to tell if it’s effective.
Inbound marketing (i.e., emails, blog content, social media, ads, and everything else you do to attract customers to your brand) is critical to success. However, it’s not enough to just put these tactics in place and hope for the best. You need to use qualitative and quantitative metrics to attach value to each of your efforts and determine whether they’re pulling their weight. From there, you can decide what’s making the most significant impact with your audience and what might be eating up more resources than it’s producing.
Below, we’re looking at the benefits of using qualitative and quantitative metrics for your inbound marketing strategy, including some examples of what you might want to start tracking if you’re not already.
Converting Customer Needs to Quantitative Metrics – Part 1 of 4
What are quantitative metrics?
Quantitative metrics are measurable outcomes associated with particular business decisions and activities. Using quantitative metrics to measure performance is often a reliable way to make comparisons between different aspects of a business, such as products, departments and even different approaches to solving complex business problems.
Quantitative metrics are represented using numbers that professionals can interpret to make meaning and support their business decisions. These numbers are often conveyed using visual tools like charts and graphs as well, which can help professionals understand their importance and the ways metrics might relate to each other.
12 quantitative metrics for measuring success
If you are interested in using quantitative metrics to measure your own organizations success, here are 12 examples of quantitative metrics, organized by category, for your consideration:
Quantitative marketing metrics
If you want to use quantitative measures to evaluate your marketing efforts, here are three strategies you can use:
Measuring the rate at which employees use specific marketing strategies can help determine the relationship between those strategies and sales. For example, if a marketing team is expected to leverage social media in its daily operations, you might measure the number of posts actually made and compare that number to a set social media engagement goal.
Website traffic metric measure details about the ways people visit your website. This can include how many people are viewing your site, how they access it and how long they stay on the site once theyve clicked on it. These quantitative metrics can help you make informed decisions about your online marketing strategies. For instance, you might compare the number of visitors who find your site via social media with those who found it through a search engine and use that information to guide your SEO activity.
Conversion rate in marketing measures the rate at which potential customers take a specific action in response to a marketing strategy. This can be a useful way to measure and analyze a companys marketing techniques. You might, for example, keep track of how many email recipients click a specific product link and subscribe to a service.
Quantitative product metrics
Quantitative metrics can help a company understand its production effectiveness and efficiency. Here are three product metrics you might use to achieve this goal:
Cycle time refers to the time it takes to complete a business process from start to finish. In the context of production, this metric can be a valuable way to identify strategies for optimizing productivity. For example, a bakery could track the amount of time that passes between procuring ingredients and selling a loaf of bread, and compare the time each component step takes as well. This might help them identify parts of the production process that could move more quickly or effectively.
Throughput is a quantitative metric that calculates production in a given amount of time. To calculate throughput rate, use this formula:
Throughput = number of units produced / production time per unit
This metric can be a useful way to identify the speed that a facility produces items, especially in the context of material goods. A building supply manufacturer, for example, might calculate throughput rate to determine how quickly they produce items like lumber.
Return on investment (ROI) measures a companys profit against their spending or investments. To find ROI, use this formula:
ROI = [(total sales – total investment) / total investment] x 100
For example, if a private school received $30,000 in tuition and invested $10,000 into its operations, its ROI would be 200%.
Quantitative customer success metrics
If you want to use quantitative metrics to measure customer success, here are three specific metrics you might consider using:
Customer satisfaction metrics measure how happy your customers are with the products they purchase or the services they receive. Companies can find measurable customer satisfaction metrics by using tools like surveys, polls and product and company reviews. For example, a restaurant might calculate the number of certain types and levels of online reviews they receive and use that information to adjust their services.
Customer retention metrics measure how many customers make repeat purchases or continue their subscription to a service. Measuring your number of repeat customers can help you analyze and evaluate your customer experience. For example, if you notice that customer retention changes when a new competitor enters the market, you can take steps to understand that competition and adjust your product or marketing strategies.
Customer acquisition refers to the rate at which a company gains customers, often compared to leads that do not. This quantitative metric can help sales and marketing teams determine their conversion rate and make changes to their strategies if necessary.
Quantitative financial metrics
Quantitative metrics frequently measure the financial well-being of a business or organization. Here are three quantitative financial metrics you can use:
Cash flow is a quantitative metric that measures the amount of money going into and coming out of a business. Calculating the relationship between income and expenses can be a useful way to make decisions regarding a companys budget. For example, if your cash flow reflects too much outgoing money, you can analyze your expenses and take steps to save money.
A companys profit margin is the ratio of money that remains in a business after accounting for expenses, liabilities and other costs. A business can measure both gross profit margin and net profit margin because these metrics account for different sets of expenses. Understanding your profit margin can be an important part of making decisions that maximize profit, such as maximizing revenue and minimizing costs.
This metric measures the amount of assets a business purchases on credit compared to assets they own outright. Debt-to-asset ration can be a good way to monitor the relative amount of debt a company carries, which can help inform borrowing decisions and help a business appeal to investors.
Which example is a quantitative metric?
What are the 4 types of metrics?
Are there qualitative metrics?
- Revenue in dollars.
- Weight in kilograms.
- Age in months or years.
- Length in centimeters.
- Distance in kilometers.
- Height in feet or inches.
- Number of weeks in a year.