As we move further into the future, the world of marketing and the trends around it is constantly evolving. In 2023, there will be a number of important metrics that you’ll need to pay attention to in order to stay ahead of the curve.
One of the most important marketing metrics to watch in 2023 will be customer lifetime value (CLV). CLV is a measure of the total value that a customer will bring to your business over the course of their relationship with your company. This metric is important because it allows you to understand the long-term value of your customers, and to make decisions about how to allocate your marketing resources in order to maximize the return on their investment.
There are several different ways to measure customer lifetime value (CLV), but the most common method is to use a simple formula that takes into account the average value of a sale, the average number of transactions per customer, and the average customer lifespan.
Here is an example of the formula that is often used to calculate CLV:
Another important metric to watch in 2023 will be customer acquisition cost (CAC). CAC is the total cost of acquiring a new customer. It includes everything from advertising and marketing expenses to the cost of sales and customer service. By understanding your CAC, you’ll be able to make more informed decisions about how much you should be spending on acquiring new customers, and how you can reduce your costs in order to improve your bottom line.
CAC = Total marketing and sales cost / Number of new customers acquired
To gather the data you need to calculate CAC, you will need to track the following:
Once you have this data, you can divide the total marketing and sales cost by the number of new customers acquired to calculate your CAC. For example, if you spent $10,000 on marketing and sales activities and acquired 100 new customers, your CAC would be $100 ($10,000 / 100).
It’s important to note that CAC can vary based on the industry you are in, the size of your business, and the specific marketing and sales tactics you are using. It’s also important to track CAC over time, as it can change as your business grows and evolves.
In addition to CLV and CAC, 2023 will also see the continued importance of metrics like customer satisfaction and customer retention. Customer satisfaction is a measure of how happy and satisfied customers are with your business, and it is often used as a key indicator of the overall health of a company. Customer retention, on the other hand, is a measure of how well your business is able to keep its customers over time, and it is often used as a key predictor of future revenue and growth.
There are a few different ways to measure customer retention, including:
Overall, the most important marketing metrics in 2023 will be those that help you to understand the value of your customers, and to make informed decisions about how to allocate your resources in order to maximize the return on your investment. By paying close attention to metrics like CLV, CAC, customer satisfaction, and customer retention, you’ll be able to stay ahead of the curve and continue to grow and thrive in an increasingly competitive marketplace.
Lastly, seek professional help if you’re looking for further guidance. Our team of EIRs and mentors are here to help you succeed. Whenever you’re ready, become a client and we can connect you with the right advisor for your unique challenges.