In a data-driven market, tracking the right metrics remains vital for CMOs to measure the effectiveness of their marketing campaigns. In 2024, they must continue to focus on the metrics that offer actionable insights and align with the business goals.
Developing pricing strategies and identifying new market opportunities to drive revenue is essential. By tracking the metrics, brands can enhance the performance of their marketing campaigns and optimize them for better results. But, avoid falling into the trap of tracking vanity metrics that do not offer real value and which affect data-driven decisions.
Critical metrics every CMO must track in 2024
Return on Investment (ROI)
CMOs are constantly under pressure to justify the value of their marketing efforts and campaigns’ profitability. But, with marketing budgets plummeting, measuring the significance of marketing has never been more crucial.
Thus, to effectively measure the effectiveness of marketing efforts, practices such as optimization, attribution, agile learning, and AI/ML-based reinforcement will be more significant in 2024.
How to Improve ROI?
- Set clear goals that are specific, measurable, and achievable before launching any marketing campaign.
- Target the right audience and understand their behavior and preferences using data and analytics.
- Make content using storytelling and humor to create engaging and memorable content that aligns with the target audience.
- Use analytics to optimize the ad spend. Aim for campaigns that generate the most ROI.
Customer Lifetime Value (CLV)
Tracking Customer Lifetime Value (CLV) is essential to understand the long-term value of the customers. Low CLVs indicate the need to reassess the customer retention strategy. In 2024, brands must continue focusing on building strong customer relationships.
This means offering robust customer service, attractive loyalty programs and incentives, and encouraging repeat business.
How to Increase CLV?
- Offer exceptional customer service and make customers feel valued and appreciated.
- Address and respond to customer queries promptly and provide support when needed.
- Offer loyalty programs, incentives, and special offers to encourage repeat business.
- Encourage customers to purchase more services with cross-selling and upselling.
- Suggest related products or services based on their purchase history and preferences to boost customer engagement.
Customer Acquisition Cost (CAC)
Keeping track of CAC is vital to determine the effectiveness of marketing campaigns and sales. High CACs indicate the need to reassess the customer acquisition strategy.
In 2024, CMOs must focus on increasing the effectiveness of their sales and campaigns by targeting the right audience, creating engaging content, and enhancing the sales approach.
How to Reduce CAC?
- Channel the right resources to the right audience.
- Encourage affiliate partner programs to use affiliates’ influence to engage with potential clients.
- Work on customer retention strategies as acquiring a new customer costs way more than retaining an existing one.
- Figure out what can be improved in terms of product/service to continue bringing value to the customers.
Conversion Rates
Tracking conversion rates helps understand how effectively the website or landing page converts visitors into customers. In 2024, CMOs must continue to improve the website or landing page to boost conversion rates. Create compelling content, optimize UX, and enhance CTA.
How to Improve Conversion Rates?
- Shorten the forms on the pages to inform audiences that brands do not require a lot from them and are considerate of their time. Long forms make the visitors hesitant, or they just do not have the time to fill it out.
- Ensure the website or landing page is easy to explore, visually appealing, and easy to load.
- Make the CTA clear and compelling using simple language and incorporate elements to encourage visitors to take action.
- Conduct A/B testing to experiment with diverse website or landing page variations. Try and test various headlines, copy, images, and CTA to see what works best.
Understanding the Employees’ Impact on Customers
Exceptional employee experience (EX) is linked with seamless, frictionless CX. Brands know it is difficult to truly satisfy and delight their customers when their employees are not efficient or excited about their work.
As per a report by NTT Data, “2023 Global Employee Experience Trends Report,”
- EX has emerged as the number-one C-suite priority, with 94% of CEOs agreeing that improvements in EX will directly affect their bottom line.
- Satisfied and engaged employees are 66% more likely to deliver exceptional customer service.
- 96% of organizations agree that CX and EX strategies must be closely aligned to maximize their impact on business growth.
- 83% of organizations say their levels of EX capability are low and that this negatively affects delivery and business success.
In 2024, CMOs must continue collaborating with their counterparts to emphasize employee acquisition and retention. The collaboration must also emphasize measuring employee education, onboarding, compensation, and overall development.
How to Improve EX?
- Provide the employees with a work-life balance. This will prevent the risks of fatigue, turnover, and dissatisfaction.
- Empower employees to present their ideas and make decisions to benefit partners and customers. But, this will require comprehensive training and knowledge.
- Empowerment, communication, and commitment to the CX culture should be embedded in every employee.
- Determine major factors influencing employee experience like leadership, culture, communication, and recognition.
- Develop a roadmap for increasing EX maturity with detailed steps, deadlines, resources, and milestones for each element’s maturity level.
- Regularly monitor their progress as per new data and insights.
Conclusion
Tracking metrics is essential for any CMO to gain valuable insights, make decisions, and drive success. As said, the ability to assess the effectiveness of marketing campaigns and initiatives is one of the critical benefits of metrics tracking. Furthermore, it helps determine strategies to optimize marketing efforts and maximize returns.
In 2024, CMOs must continue to track the above metrics to-
- Identify areas of improvement
- Allocate resources more efficiently
- Target the right audience
- Deliver personalized experiences that resonate with customers.
However, flawed tracking can severely affect marketing strategies and overall business growth. Inaccurate data and insights mean making decisions based on intuition rather than evidence. This leads to-
- Ineffective campaigns
- Wasted resources
- Missed opportunities
By tracking the right metrics, CMOs can make significant decisions and stay ahead in the ever-evolving marketing landscape.
