Imagine you are on a flight and the plane is taking off from London to Paris. You are getting comfortable in your seat sitting beside a stranger. You hear a voice coming from the intercom, “Good evening passengers, this is your captain speaking. I would like to welcome you all to the flight. I usually tell the passengers the altitude we are flying with, but today we have decided to continue this flight without any indications. I know the directions and routes in general. Just sit back have tea and coffee and relax. We will be landing in Paris in a few hours.
Do you think you would be sitting back and relaxing on the flight? So then why do many of the marketing leaders lead teams similar to this pilot? Growth marketing metrics work as an indicator that tells you how well your plan is going. Is the engine running without any obstacles? Or is there any leak in the fuel?
By measuring the important and reliable metrics, your marketing team exactly knows where to focus and put your energy. What needs to be enhanced? Where is the friction in the buyer’s journey? How we can make our marketing engine efficient.
In this blog, we are going to discover everything you need to know about growth marketing strategies. Let’s begin with all the details.
What are Growth Marketing Metrics?
Before we start to read about growth marketing strategies let’s see what growth marketing is:
Growth marketing is similar to the full-funnel way. It is an approach that utilizes the 6 stages of growth and buyer journey. At every step of the buyer journey, you lose or win customers depending on how to engage, appeal to, and ultimately delight them.
So where do the metrics arrive? With six levels to focus on, you need to know whether your efforts will grow the fruit or fall flat. Growth marketing metrics work as an indicator on the dashboard of your growth engine. They help you in determining where to put your energy and optimize performance.
A data-driven approach lets you build a baseline, monitor your progress over time, enhance what’s winning, make modifications to what’s not, and sharpen your marketing strategy. Does this sound complicated?
It is not complicated at all.
There are numerous online platforms accessible online where all of your required metrics live. You can take action, see results, and make the best use of your time.
Performance Marketing vs. Growth Marketing
Let’s break down what is exactly performance marketing and growth marketing.
Growth marketing focuses on playing the long game. The primary focus is obtaining customers through a data-driven and experimental approach. Instead of short-term wins, growth marketers invest their resources and time into strategies that flex compounding returns over time.
Primary Elements of Growth Marketing
- Continuous Experimentation
Continuously testing different strategies and iterations based on results.
- Data-Driven Decisions
Utilizing analytics to pinpoint double-down and effective channels.
- Pay Attention To The Entire Funnel
Optimize your customer journey entirely and not just at the top of the funnel.
- Long- Term Customer Value
Prioritize those strategies that build lasting relationships.
Growth marketers breathe and live the “develop it, analyze it, learn it” mentality. They find cost-effective and scalable ways to appeal to their desired audience and convert them into loyal brand ambassadors.
On the other hand, performance marketing pays less attention to driving particular actions that give measurable ROI in the short term. If growth marketing takes the impressive route, performance marketing is all about taking the most direct path possible.
Hallmarks of Performance Marketing
Let’s have a look at the hallmarks of performance marketing.
- Focus On Conversions
Campaigns designed to generate sales, leads, downloads, etc.
- Short-Time Horizon
Strategies oriented around immediate returns.
- Channel Optimization
Bidding, targeting, constantly fine-tuning, etc.
- Metrics
Metrics like ROAS and CPA measure success through cost per acquisition and return on ad spend.
- Customer Acquisition Costs
Performance marketers are obsessed with securing the minimum possible customer acquisition cost. This is done through audience targeting, creative testing, and rigorous funnel optimization, all of which can be effectively summarized in a one page business plan for clarity and focus.
Important Metrics to Track
Here is a list of some of the metrics that will help you track and measure the performance.
- Awareness Metrics
Awareness is simply how many people know who you are. This can be measured by tracking how many visitors crawl on your website every month and how many of them follow you and interact with the content of your company. This interaction could be on different social media sites like Medium or YouTube.
- Acquisition Metrics
The right type of traffic coming to your website makes acquisition simple. Acquisition metrics pay attention to how many visitors you turn into leads through lead magnets, offers, and forms. Again, you have to set your goals and carefully create your offers and lead magnets to target the people most likely to purchase from you. Acquisition guides you if your traffic isn’t converting your lead magnets.
- Activation Metrics
Activation is fed by awareness and acquisition. In this stage, you are nurturing your MQLs to convert them into SQLs. You are all set for success if you have done a great job attracting your ideal customers and offering value to them. Attaching the lead score is a great way of determining whether the lead is solid or not.
- Revenue Metrics
We all desire to make money, but how can we track revenue? We can break it into small chunks and make it simple to understand.
- Customer Acquisition Cost
It’s all good to celebrate when your visitor turns into a customer. But your business costs a lot to acquire customers. With CAC metrics you will know how much you are spending on sales efforts and marketing. You can also calculate marketing return on investment.
- Retention Metrics
To get the full picture of the metrics that matter, you must look at retention metrics. Crushing your sales and marketing does not mean enough if your customer isn’t sticking around. Understanding these metrics can also help you determine when to sell your business, as a strong customer base is vital for maximizing its value.
Frequently Asked Questions
What are examples of growth marketing metrics?
Some key growth marketing metrics include:
- Revenue (like annual recurring revenue and average revenue per user)
- Lifetime Value (LTV)
- Customer Acquisition Cost (CAC)
- Conversion Rates
- Activation Rate
- Retention Rate
- Customer Satisfaction
What are the types of growth marketing metrics?
Growth marketing metrics can be grouped into categories focusing on:
- Revenue Generation
- Customer Acquisition and Activation
- Retention and Lifetime Value
What is the most important growth marketing metric?
Many businesses choose a “North Star” metric to gauge the value they provide. This metric aligns with the company’s strategy and growth efforts. Examples include the number of purchases for an e-commerce site or completed rides for a ride-hailing service.
Concluding the Growth Marketing Metrics
In summary, performance marketing is most effective at the bottom of the funnel, while growth marketing spans all stages to drive overall business growth. Understanding this distinction can help you define what success looks like for your marketing goals. We have covered all the important factors of growth marketing metrics and performance optimization in this blog. Keep all the factors in mind while deciding the best metric for your business.