5 Performance Marketing KPI’s You’re Crazy Not to Be Optimizing

Unfortunately many ecommerce businesses get caught up in the daily grind of managing a complex ecommerce subscription business and pay little attention to their key performance marketing metrics. The volume of daily data can feel overwhelming.  Managing merchant accounts, monitoring customer support and call center activity, working to improve fulfillment and product delivery speeds, optimizing to handle your transactions, drilling down into re-bill data and chargeback rates…the list is long.

As a business owner you’re likely building a team around the daily needs of your business, but it’s important to keep your eye on the important stuff. Successful business owners know how to separate the noise from the important metrics that drive revenue.

Luckily, it’s not rocket science, but you can’t manage what you can’t measure – so here are the 5 performance marketing KPI’s we think are the most important for you to be not only tracking, but understanding.

1. CLTV – Customer Lifetime Value

Gross Profit / Unique Customer = CLTV

Customer Lifetime Value allows you to understand the actual value of each unique customer that comes in the door. You can quickly measure the impact of each new customer with customer lifetime value.

2. MRR – Monthly Recurring Revenue

Monthly Gross Revenue from recurring orders

MRR is the income from recurring orders, not including the initial transaction. Initial transactions can sometime include trial subscription orders, so MRR won’t be skewed by initials transaction as it only reflects rebills.

3. ROI – Return on Investment

(Gross Revenue – Gross Expenses)/ Gross Expenses = ROI

ROI measures the gain/loss generated relative to the amount of money invested. ROI measures the success of your business strategy and can help you navigate where to double-down or to pivot.

4. eCPA – Effective Cost Per Acquisition

CPA Expense Total / Initial Order = eCPA

5. Customer Churn

How many customers are you losing on a weekly, monthly, quarterly, and yearly basis. Understanding your customer churn is vital to successfully growing your business.

You are what you measure.  Developing a discipline of measuring, monitoring and analyzing these 5 critical performance marketing KPI’s will ensure you have a handle on your business and are keeping your eye on the all important bottomline.