In order to see if you’ve fulfilled the marketing goals you’ve set for your business, you need to make sure you are able to analyze the data of all of your marketing spend. At the end of your marketing term, it’s important to have the ability to see what is working or not. A big part of benchmarking your data is taking a close look at your B2B website marketing metrics.
The top six metrics to take a closer look at as identified in theMarketing Metrics To Use on B2B Websites whitepaper are as follows: CPA (Cost Per Action), Total Conversions, Cost Per Lead, ROAS (Return On Advertising Spend), CLV (Customer Lifetime Value), and Overall ROI (Return On Investment).
So what is CLV, and why is it important? The Customer Lifetime Value is an important metric to determine the overall economic value a person brings to your company, not just the product alone. From the customer’s first interaction with your brand to the final purchase, analyzing the full customer journey can help determine if you have holes in any part of it. Once you can see where you lost the customer, you can pinpoint how to change your efforts so you can bring them back and retain them in the long term.
The formula for the calculating CLV is simply to predict the net profit attributed to the entire relationship with a customer, with varying levels of accuracy and sophistication. Various website analytics software systems can monitor your customer’s journey through your B2B website, tracking how the person found your website, what pages they visited, and what actions they took to convert from a lead into a purchase.
Keep in mind that the CLV metric is a forward-thinking model. Since you are tracking the full lifetime revenues and costs attached to a customer relationship, it can help shape future marketing strategies but is more difficult to quantify.
Any seasoned marketer understands that converting one-time customers into loyal friends for life results in immense value for your business. Recognizing the longtime worth of your customers and using B2B website marketing metrics to help track the full customer journey will be a huge benefit in reaching your business’s marketing goals.