As we head into a new year, when it comes to reassessing your building product’s approach to marketing, you want to have a data-led approach and be guided by the science.
Only through this approach can you meet your KPIs and begin to see actual business growth.
But to make sure these KPIs can be met, you need to set targets, track metrics and regularly evaluate them.
So where do you start?
We’ve picked 10 of the most important marketing metrics to be tracking that will help your building product brand achieve its goals.
1: Customer Lifetime Value
Helping to provide a definitive value of your customers, customer lifetime value lets you know what an average customer is worth, guiding things such as ROI and acquisition cost. Most importantly, it allows you to work out who your most valuable customers are.
The simple formula involves calculating the average order total, multiplied by the average number of purchases in a year, multiplied by average retention time in years.
This allows you to work out costs over a given period depending on your marketing intentions.
2: Customer Acquisition Cost
Leading on from customer lifetime value, the customer acquisition cost is a method that allows you to streamline your approach to marketing spend and work out exactly what, in theory, needs to be spent in order to gain one customer.
To work it out, you need to do is divide your total sales & marketing costs by the number of customers acquired in a given amount of time.
This gives you a snapshot of your marketing activities and allows you to explore what exactly is and isn’t working.
3: Cost Per Lead
Like customer acquisition cost, cost per lead measures the amount of marketing spend required in order to gain a lead.
Depending on how many channels are being used for your construction marketing, you can understand what is working, what isn’t and which of your construction marketing channels might need more work.
The more you can narrow down the costs of your marketing channels, working out lifetime value, lead and acquisition cost, the more you can react, refine and get results.
4: Domain Authority
One of the most unknown metrics, domain authority is probably one of the single most important when it comes to ranking higher on Google.
On a scale from 0-100, domain authority is Google’s way of determining how authoritative your website domain is, a metric improved by receiving backlinks and being referenced.
Websites with higher domain ratings such as news sites or business journals are commonly found towards the top of Google, so measuring your authority regularly is a great way to understand how your rankings will change throughout the year.
5: Email Click Rate
While email open rate might be the first metric you look at, it’s more important to consider click rate if you really want to get an idea of how your marketing content is performing with your audience.
The higher the click rate, the more engaged your recipients are with what is being sent. So, if you are sending meeting links and the click rate is up, it’s a fantastic indicator that people want to meet with your team. Likewise, if blogs are being clicked, you know the content is appealing to your audience.
If your click-through is low, you know your content needs to be revisited and revised, something that you won’t know by just measuring email marketing open rates alone.
6: Website Bounce Rate
Bounce rate is your indicator of the quality of your website and how well your pages link together.
An ideal bounce rate would be anywhere between 25-45%. With a bounce rate too high it’s likely there are technical issues on your web page or it’s just not engaging enough. Too low it’s likely the traffic is from bots and could be affecting your data.
Having an optimised bounce rate means that you are increasing your chances of conversion as visitors are spending more time on your website.
7: Average Time On-Site
Walking hand-in-hand bounce rate, measuring the time spent on your building product website average time, or session time helps highlight how long your visitors are spending on site.
This is a fantastic metric to track, particularly if you are doing content marketing. You want visitors to be spending time reading the content, educating, and informing themselves.
In an ideal world, your site visitors have a long average time, with a low bounce rate, suggesting they are reading the information provided, in turn leading to more leads.
8: Traffic Acquisition
It’s all well and good measuring the traffic coming to your construction product website, but do you know where that traffic is coming from?
Like your cost per lead, your traffic acquisition lets you break down your website visitors into different channels, allowing you to get a better picture of what’s working.
Google Analytics provides a traffic acquisition tool, breaking down your website visitors into a range of categories including organic, email, social media and direct. Better understanding where your traffic is coming from allows you to refine and revise, optimising your marketing channels.
9: Customer Churn
Measured across a given amount of time, churn is a fantastic indicator of how successful your customer experience is.
Relating to the number of customers who have stopped regularly using your product or services, churn can be calculated by dividing customers lost during an agreed period of time, by those you had at the start.
In a perfect world, you want to have 0% churn. But any number will help you understand who you are losing so you can find out why giving you the tools to react accordingly.
10: Customer Conversion Rate
When you’re working with a marketing funnel, it’s important that you are measuring conversion rate as this is the most important metric that indicates the success of all of your efforts.
In having something like a landing page with a meeting link or form, only available through a CTA, you can gain the all-important data that work out the conversion rate.
You can work this out by dividing the number of visitors to the page by the number of submissions. It’s important to make sure that this page can’t be found by search engines and that is fully optimised to encourage conversions. That’s what you want, after all.
If you stick to tracking these 10 different metrics then you should be well on the way to having a successful 2022 for your building products.
The important thing to consider when measuring these data is being proactive, not reactive.
If you see something is below your expectations, then you should react and explore why. In doing this, not only does it help get everything back on track, but it helps drive your construction marketing in the right direction.
Data is everything, so in measuring and keeping track of these metrics, you can have a much more successful approach to your construction marketing.
At Insynth we deliver a predictable flow of leads, customers, and specifications for building product brands through our inbound marketing approach, proven to reach a technically demanding audience.
We use the latest marketing techniques such as construction inbound marketing, to equip building product companies to grow sustainability in this era of digital transformation.
As the only HubSpot certified agency to major in construction marketing. We have a proven formula of bringing a variety of functionalities together including CRM Implementation, Web Design, Sales Automation, SEO, and Email Marketing to achieve your ultimate aim: Growing your business and gaining new specifiers and customers.