The Marketing Metrics That Actually Matter (And the Ones You Should Ignore)
Marketing is flooded with data, but not all metrics are created equal. Many companies focus on vanity metrics—impressions, likes, and clicks—without tracking the numbers that actually impact growth and revenue.
In this article, we’ll break down the metrics that truly matter and how to use them to make better marketing decisions.
Vanity Metrics vs. Actionable Metrics
Vanity metrics look impressive but don’t necessarily drive business results. Actionable metrics, on the other hand, give you real insight into performance and profitability.
Vanity Metrics to Avoid:
Social media likes & follows – Unless they drive sales, these numbers don’t mean much.
Website traffic without conversions – More traffic is great, but if it doesn’t convert, it’s just noise.
Email open rates – A high open rate is useless if no one clicks or takes action.
Actionable Metrics to Track:
Customer acquisition cost (CAC) – How much does it cost to acquire a new customer?
Customer lifetime value (LTV) – How much revenue does a customer generate over time?
Conversion rates – How efficiently are leads turning into customers?
Marketing-influenced revenue – How much revenue is directly tied to marketing efforts?
The key is to focus on metrics that drive revenue and business growth.
1. Customer Acquisition Cost (CAC)
CAC tells you how much you’re spending to bring in each new customer. If it’s too high, your marketing isn’t efficient.
How to Calculate It:
CAC = Total Marketing & Sales Costs / Number of New Customers Acquired
How to Improve It:
Optimize your ad targeting to reach higher-intent customers.
Improve conversion rates to make each lead more valuable.
Test organic marketing channels to reduce paid acquisition costs.
If CAC is too high, your marketing spend isn’t working as hard as it should.
2. Customer Lifetime Value (LTV)
LTV helps you understand how valuable a customer is over time. If your LTV is low, you might be attracting one-time buyers instead of repeat customers.
How to Calculate It:
LTV=Average Revenue per Customer×Average Customer Lifespan\text{LTV} = \text{Average Revenue per Customer} \times \text{Average Customer Lifespan}LTV=Average Revenue per Customer×Average Customer Lifespan
How to Improve It:
Strengthen your customer retention strategy.
Offer upsells, cross-sells, or subscription models to increase value.
Focus on brand loyalty and customer experience to keep people coming back.
High LTV means customers spend more and stick around longer.
3. Conversion Rates
A high conversion rate means your marketing is efficient and persuasive. A low one means you’re leaving money on the table.
Key Conversion Metrics to Track:
Website conversion rate – How many visitors take action (buy, sign up, book a demo)?
Lead-to-customer conversion rate – How many leads actually become paying customers?
Email click-through rate – How many people take action from your emails?
How to Improve It:
Refine messaging to make offers more compelling.
Test landing pages and optimize for conversions.
Personalize marketing to increase engagement.
A small increase in conversion rate can have a massive impact on revenue.
4. Marketing-Influenced Revenue
At the end of the day, marketing is about driving revenue. If you can’t track how marketing contributes to sales, you’re flying blind.
How to Measure It:
Track leads generated by marketing and their impact on revenue.
Measure ROI on campaigns to see what’s working.
Align marketing and sales data to connect the dots.
Marketing should be a profit center, not an expense.
Final Thoughts
Your marketing should be built around metrics that matter. By focusing on CAC, LTV, conversion rates, and marketing-influenced revenue, you can make data-driven decisions that drive real growth.
Are you measuring what actually matters?
Let’s build a marketing strategy that delivers real results.