Top 10 B2C Customer Acquisition Metrics you need to track All marketers strive for many things, but customer acquisition is the end goal in every single campaign, promotion or effort. However, there are various factors that determine how successful your efforts are and different ways of tracking them – and it goes beyond the question of, “How many products did we sell?” While asking yourself that question is indeed a good idea, it won’t really show you how profitable your business is, and whether it’ll continue to prosper or not. Plus, you would also need certain information and insight on how to guarantee the future and growth of your company, and the only way of doing that is by tracking other important customer acquisition metrics. Without metrics, you’ll basically be playing a guessing game with your business – which is something all business owners should steer clear of. So, without further ado, here are the top 10 B2C customer acquisition metrics that can help you measure success, and eventually help you grow your business. 1. Customer Acquisition Cost (CAC) Customer acquisition cost (CAC) measures the total sales and marketing cost required to earn a new customer over a specific time period. This metric is vital in determining your profitability as it compares the amount of money spent on attracting customers against the number of customers gained, which can directly impact your profit margins. Image: Hubspot 2. Customer Lifetime Value (CLV) CLV measures the total income a business can expect to bring in from a customer for as long as that person or account remains a client. Having a healthy idea of your customer lifetime value allows you to break down various components that can impact your move-forward strategies – especially surrounding factors such as pricing, sales, advertising and customer retention to reduce cost and increase profit. Image: Tidio 3. Average Order Value (AOV) The Average Order Value (AOV) measures the average value of every purchase. You can obtain measurement data for this metric by simply dividing the total value of all sales by the number of items in your customer’s carts when they check out. This helps to give you valuable customer insight and allows you to drive sales strategies to earn as much as possible from customer purchases. Image: Eshopbox 4. Churn rate Do you know how many customers you lose every year, or how many customers you have lost in comparison throughout the years? Customer churn rate is a critically important metric for companies whose customers pay on a recurring basis, like a subscription-based operating model, for example. The idea behind understanding your customer churn rate is to understand their turnover, which refers to the number of customers you’re losing in a set timeframe. Image: CleverTap 5. Purchase Frequency The purchase frequency refers to how often the average shopper buys from your store. This gives you insight into common buying triggers like seasonal events and discounts, which is vital in backing up the execution of marketing strategies such as targeted offers and email newsletters around key times of the year when you know your customer is making purchases. Image: Smile.io 6. Loyalty rate Customer loyalty rate is the number of customers who have made a repeat purchase with you within a given time range. Since loyal customers tend to purchase from the same brand multiple times, it’s important to know how many loyal customers you have – considering they drive the most sales and are also the most likely to share referrals to your business. Image: Smile.io 7. Marketing percentage of CAC The marketing percentage of CAC tells you how much of your marketing budget is spent on bringing in new customers. A good marketing strategy results in a low marketing percentage of CAC, hence, tracking this metric will allow you to gain insight into the split of your sales and marketing expenditure, as well as its return on investment. 8. Conversion rate Customer conversion rate is the percentage of potential customers who take a specific desired action – such as on a website or landing page. Your conversion rate enables you to measure how effective your content marketing strategy is in driving sales qualified leads. Image: CFI 9. Customer acquisition channels What channels bring in most of your customers? Answering this crucial question allows you to focus on key channels and understand your target customer’s behaviour. There are various ways to track this, but a commonly used tool is Google Analytics. Alternatively, you can use unique tracking systems that are at different parts of your product landing or checkout pages. 10. Referral acquisition Word-of-mouth marketing is always the first choice for most people when they’re looking for a brand to buy from. Referral acquisition is often the most cost-effective marketing, and taps on existing brand ambassadors to drive sales. But how exactly do you measure this? Well, that can be entirely up to you, but we highly recommend the cost vs revenue measurement. This would allow you to find out just how much you are spending on your referral programs and how much you’re getting back in sales. If your revenue exceeds your cost, then that means you’re on the right track. From there, you can decide on whether you should continue running your referral programs or even experiment with making them more well-known to your potential customers (through ads, better copy, etc). Image: Referral Candy Improve your business and customer acquisitions with Salesworks Now that you have a good idea of the important customer acquisition metrics for B2Cs, you can use them to your advantage to better improve your business and its profitability. That being said, these metrics aren’t just something that you should only check once and then forget all about. As a business owner or marketer, you’ll need to keep track of them as often as possible, and depending on the size of your business, it could be on a weekly or monthly basis. This will ensure that you’ll be equipped with accurate data to help you make better decisions. Looking to find out more about metrics, or how you can get additional support to track or improve existing results? Partnering with SalesWorks can help you bring your strategies to the next level. Our approach focuses on not just driving volume through the door, but more importantly, quality customer acquisitions. Find out how we can help you by reaching out to our team here.