As marketers, we all have goals which could be ranging from building awareness, driving revenues, optimizing performance and improving customer satisfaction.  Therefore, it’s important to identify and track key marketing metrics to ensure that you are always one step closer to your goal. Here is a list of new age metrics that every digital marketer should be aware of and should closely follow.

7 Marketing Metrics that every marketer should know

Transaction Conversion Rate:

Conversion Marketing focuses on converting visitors on your website into paying customers. Transaction conversion rate is metric to track the number of transactions on your site. Conversion rate as a metric is viewed more as a long-term investment as to improve low conversion rate you need optimize customer experience, web analytics and use feedback to improve the user experience.


Active users: 

Active user tracks the number of unique users during a specific engagement period usually 30 days. If you’re a digital marketer, you will encounter words like MAU which stands for Monthly Active Users & DAU  which stands for Daily Monthly Active Users.  Standard DAU/MAU is usually 10%-20% only a handful of companies top 50% like Whatsapp.


ARPU (Average Revenue Per User):

ARPU is considered to be the holy grail of marketing metrics. ARPU is an indicative of the effectiveness of revenue generation potential and is a popular metric with communication and networking companies. ARPU calculation also differs basis the nature of business for example in the case of mobile games you have pay to download, subscription & ad-revenue model. To calculate the ARPU, a standard time period must be defined. Average Revenue Per User can be calculated using the below formula.


ARPU for Popular Mobile Games in 2014


It’s important to note that ARPU and CPI (Cost Per Install) seem to be inversely related.


Based on Quettra’s data, we can see that the average app loses 77% of its DAUs within the first three days after the install. Within 30 days, it’s lost 90% of DAUs. Within 90 days, it’s over 95%. Stunning. The other way to say this is that the average app mostly loses its entire user base within a few months, which is why of the >1.5 million apps in the Google Play store, only a few thousand sustain significant traffic.

Retention Rate:

With App & Play stores getting saturated mobile marketers are shifting focus from app installs to retention. For starters, retention rate can be defined as below. However, it is important to note that while measuring retention rate most brands use 90 days or one-quarter as an industry standard because it takes app users lifecycle into account.

Retention: Returning to the app at least 1x within 30 days

So what’s a good retention rate? Localytics has compiled retention rates across Industries. 75% of all app users churn within 90 days. The graph below showcases the average retention rate by industry after 30, 60, and 90 days respectively. As you can see, the average retention rate varies by industry.


Research from Quettra also suggests that shows losing 80% of your mobile users are normal.


You can conclude from the above graph that users find the top apps immediately useful, use it repeatedly in the first week, and the drop-off happens at about the same speed as the average apps.

Customer Lifetime Value:

Customer Lifetime Value has to be the single most important metric to understand your customers. CLV has an impact on the decisions that you make in every department starting from sales, marketing, product development and customer support. CLV can be calculated using the below formula.


Ideally, if you want to improve Customer Lifetime Value you need to improve your average order value (Gross Contribution Per Customer) or your retention rate.


The cost of Customer Acquisition can be calculated by dividing the costing spend on acquiring customers (marketing expenses) during a given period by the number of customers acquired during the same time period.  If you have to improve your Life Time Value you need to improve your Cost of Customer Acquisition.  CAC & LTV are closely looped, and the marketing metrics need to be tracked on regular intervals.

GMV (Gross Merchandise Value)

Gross merchandise value is the total value of merchandise sold over a given period through a customer to customer exchange site. It is a measure of the growth of the business, or use of the site to sell merchandise owned by others.


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