For luxury and premium businesses in particular, vanity metrics can be misleading. A post reaching thousands of people doesn’t necessarily mean it has generated actual business.
Successful luxury business track the numbers that tell you what is actually happening.
Here are the five most important to keep tabs on:
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Website Conversion Rate
Getting people to your website is only the beginning, but what happens after that?
Your website conversion rate helps you understand how effectively your digital presence turns visitors into enquiries, bookings, registrations or other meaningful actions.
If you are attracting the right audience but very few people move through your buyer journey, the problem may not be your advertising.
It could be your messaging, positioning, website experience or call to action.
Tracking your conversions helps you understand why people chose to stay.
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Cost Per Lead
Cost per lead allows you to compare different campaigns and channels, whilst understanding what it costs to generate an enquiry.
For example, one campaign might generate a large number of inexpensive enquiries, while another generates fewer but significantly more relevant conversations.
The cheapest lead isn’t necessarily the best lead.
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Lead-to-Customer Conversion Rate
You may be generating plenty of enquiries, but how many become customers?
Tracking the percentage of leads that eventually convert can reveal important information about your entire customer journey.
If lots of people enquire but very few purchase, you may need to look beyond your marketing.
The number helps you identify where the journey is breaking down.
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Customer Acquisition Cost
Customer acquisition cost looks at the bigger picture.
Rather than simply asking what a lead costs, you consider what it costs to acquire an actual customer.
If one channel consistently produces high-value customers at a sustainable acquisition cost, it may deserve more attention and budget.
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Customer Lifetime Value
One of the most important metrics to consider is what a customer is worth over the course of their relationship with your business.
A customer who makes one purchase is good.
But a customer who returns repeatedly, recommends you to others and becomes a long-term advocate?
Considerably more valuable.
Suddenly, spending more to acquire the right customer makes more sense than chasing vanity
metrics.
The Numbers Need Context
The purpose of tracking these figures isn’t to turn your marketing into a spreadsheet exercise.
It’s to make better decisions.
A campaign might have a high cost per lead but generate exceptionally valuable customers.
Another might produce impressive engagement but almost no commercial results.
Without context, the numbers can be misunderstood.
Understanding the purpose behind each campaigns makes the numbers make more sense.
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