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Last month we gave you 5 Key Inbound Marketing Metrics To Track as a response to Hubspot's 'State Of Inbound 2015' key finding that marketers main challenge was proving ROI for their Inbound efforts.  

That post focused on metrics that relate to how much attention your content is attracting using data such as email click rates, page views and brand mentions.  These are very much at the top of the sales funnel in terms of the purchase cycle.

Linking Inbound Marketing To The Sales Cycle 1

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However to effectively measure the ROI of your Inbound Marketing the data that is tracked must be linked to its ability to generate new business and retain existing clients.

Here are 5 metrics that help to build a picture of the revenue earning effectiveness of your inbound marketing.

1. Landing Page Conversion Rates

So you've created the right content to get your audience to your site.  Now your landing page needs to provide the prompt for the person to convert an action.  Be it fill out a contact form or sign up to a newsletter, getting this conversion draws them closer to becoming a customer.  

Your landing page conversion rate is:

(Number of Conversions divided by Number of Page Views) x 100

Many website platforms will provide conversion metrics for embedded forms or you can use Google Analytics to setup Goals that measure a conversion.  For tips to setting this up take a look at our post on Google Analytics Goals.

Keep an eye on your key landing page conversions and report regularly to track its changes.  When looking to improve you landing page conversions make sure your Call-To-Action buttons are prominent and are relevant to the content of the page.  For more help in improving landing pages visit our guide to Creating The Perfect Landing Page


2. Lead To Customer Conversion Rate

Now you've had people register their interest in your business by way of page conversion the next important metric to look at is the rate of leads that get turned into customers.  

Your Customer Conversion Rate is:

(Number Of Sales From Leads divided by Number Of Leads) x 100

Chances are you are going to have leads that range in their stage of purchase.  If you are providing a service that requires a sales team to convert leads to customers you should consider ways you can qualify leads so your sales team can focus on hot leads to increase your customer conversion rate.  This could be done by gathering more information via signup forms or having a quick qualification process when the lead is contacted that gathers information to rate them from 'Not Ready' to 'Ready To Purchase'.  


3. Cost Per Lead

Establishing how much each lead costs is crucial for working out your ROI of your inbound marketing.  

Your Cost Per Lead is:

(Total Cost Of Generating Leads divided by Total Leads Acquired)

This should include all resources committed to planning, developing and distributing your inbound marketing content.  To create a more detailed picture of which lead source channels are more effective, break them down into Social, SEO, Email and Adwords for example.


4. Cost Per Customer ACquisition

This metric helps to isolate the cost it takes to guide a person from the point of registering their interest in your offering to the point they purchase from you.

This cost is most likely going to be the cost of a sales team that handles leads or the cost of executing sales drivers like emails or social media campaigns.  

Your Cost Per Customer Acquisition is:

(Total Cost To Convert Lead divided by Total Customers Converted)


5. Customer Lifetime Value

Customer lifetime value is often overlooked as information to be tracked.  Perhaps it seems less important when businesses are focused on generating new business.  However the revenue a loyal customer can contribute is too considerable to be ignored.

Your Customer Lifetime Value is:

(Average Customer Spend X Number Of Visits Per Year X Average Retention Time)

The concept of Customer Lifetime Value and how to calculate it is best explained by an infographic by Kissmetrics here.  


Tracking, reporting and analysing these metrics to involves commitment that explains why many marketers proclaim this to be their biggest challenge.  However with dedicated commitment comes justification and validation for the effectiveness of your inbound marketing.