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Growth Marketing Metrics for 2023
The ultimate goal of growth marketing is annual recurring revenue. This metric is commonly used by subscription-based companies and can be useful for understanding business performance and guiding ongoing strategies. However, the most important growth marketing metrics are the ones that are easily measurable and that your company can track and improve over time.
North Star metric
Your company’s North Star growth marketing metric should embody key KPIs influencing user acquisition, retention, and revenue. It should be a top priority and distributed across relevant teams. It should be measurable, attainable, and relevant to your audience. Your North Star metric will determine how to best add value to your users. If you’re not sure where to begin, here are some tips for identifying the metric that will help you reach your goals.
To determine the best growth marketing metric for your business, you’ll want to determine the overall growth potential of your business and determine how much you need to invest in each key area. If your revenue growth has been flat for a few years, you can use the One Metric That Matters to help you determine whether you’re on track to reach your long-term goal. To make the most of your One Metric That Matters, consider incorporating it into your growth-hacking strategy.
Your North Star growth marketing metric should accurately predict how well your product is doing. It should also reflect how valuable your customers find your product. For example, Airbnb’s North Star metric is the number of nights that guests book through its platform. This metric reflects the evolution of the platform and correlates with the value of a good experience.
The other two factors in your North Star growth marketing metric should balance customer satisfaction and the cost of acquiring new users. Having a North Star that emphasizes money over customer satisfaction will ultimately lead to a dissatisfied customer base and may end up putting your company out of business.
Having a clear vision for your company’s future can help you make better decisions and ensure that your business will continue to succeed. With a clear North Star growth metric, your entire organization will remain on track, and your business will have a single, transparent accountability standard. In addition, it will prevent participants from hiding behind vanity metrics.
Monitoring activation rates
If you’re a startup or early-stage company, monitoring activation rates is crucial. If your website gets visitors, but they’re not signing up for your services or starting free trials, you may be losing out on valuable customer data. The best way to avoid this is to focus on activation rates. This metric can tell you if your onboarding process is broken or if users are not getting the value they expect.
An activation rate is a measurement of the proportion of acquired customers who sign up for your newsletter or trial. This metric can also be broken down by marketing channel. For example, if you are running a PPC ad campaign, monitoring the activation rate of those visitors will tell you whether you’re maximizing your marketing efforts.
Monitoring activation rates can help you improve your overall customer retention rates and growth. This metric is difficult to measure but has a long-term impact on customer satisfaction, revenue, and success. If you can improve activation rates, you’ll have an easier time growing your customer base.
Monitoring annual recurring revenue
If you’re looking to increase the size of your company, monitoring annual recurring revenue (ARR) is one way to do that. This metric shows how much you’re generating from existing customers. It can help you determine which customers are the most valuable and how to engage them in customer loyalty programs.
Annual recurring revenue can be calculated in two ways. Monthly recurring revenue measures the money generated during a given month, while annual recurring revenue measures the revenue generated over the course of a year. For each of these, multiply the number of days active in the month by 12.
Increasing customer retention
Increasing customer retention is a fundamental growth marketing metric that is highly important to the success of your business. By retaining customers, you can generate additional sales, customer feedback, and referrals. In addition, increasing customer retention can boost profits by 25-95%. To boost customer retention, you must develop a customer-centric strategy, and make sure that employees put their hearts and souls into pleasing customers.
One of the best ways to increase customer retention is to make every interaction personalized. You can use CRM software to gain insight into your customers’ preferences, which allows you to better time sales and suggest additional products and services. You can also personalize your communication methods to make sure that your customers are getting the messages they need. For instance, some customers prefer email communication, while others prefer texts. You should always ask for their permission before modifying communication methods to ensure that they will remain happy.
Another important growth marketing metric to keep an eye on is brand awareness. While this is harder to measure, it is equally important for a brand’s future growth. In order to measure brand awareness, brands must balance brand investments with performance-based marketing. Brand awareness is a lifetime value discipline that must be cultivated by a brand.