Volume vs Value Metrics

As marketers, we have access to so much data that sometimes, we get lost in reports and numbers that might not be important to the business’s button line. As our industry changes and we can track more than just website visits and clicks, some of our reporting has not coughed up to what truly matters, the sales and revenue that was delivered from our marketing efforts.

When I started working at a marketing agency many years ago, our KPIs were focused on website traffic and keyword ranking, costs per click, and post likes. As a marketing agency, we used that information to establish our worth. If we could get our client’s website to rank number one for their primary keyword, we were doing our jobs.

But as marketing has changed, those numbers aren’t always the most important metrics to focus on. In fact, in some cases, they might not even be accurate measures of success.

Instead of website traffic and keyword ranking, we should be looking at value metrics.

Value metrics are measures that show how our marketing efforts translate into revenue for the business. This could include things like conversion rates, leads generated, or sales pipeline generated. They measure how much your marketing is worth to the business. In other words, it’s a way to track ROI (return on investment). These are the numbers that truly matter because they show how effective your marketing is in terms of generating revenue for the business.

On the other hand, volume metrics measure website traffic which might not be as important as it used to be. Volume metrics include social media followers and likes, email subscribers, and blog pageviews. While these numbers can be impressive, they don’t always directly translate into revenue or sales for the business.

So, when you’re reviewing your marketing reports, make sure you’re looking at both volume and value metrics. But don’t get too caught up in the numbers. Instead, focus on the value metrics that will show you how much revenue your marketing efforts generate for the business.

So what does all this mean in today’s world? Well, the answer will differ for each business, but the first question we should ask is how success should be measured. Forget clicks and traffic and focus on the bottom line. In your specific business, what is the main focus? Is your success measuring our success in total sales? cost per acquisition? something else?

Once we have this answer, we can work backward to determine what metrics will help us along with the goal. For example, if you have a service business, and you measure your marketing success based on new client acquisition, then that should be your main KPI. Who cares if your cost per click is higher as long as your cost per lead and acquisition is lower? Who cares if you have less website traffic as long as the traffic you get is relevant and generates new leads?

The key is to focus on the numbers that matter to your business. So, if you’re not sure what those numbers are, ask yourself this question: What metric will show me how much revenue my marketing efforts generate for the business? Once you have that answer, you can start to focus on the value metrics that truly matter instead of wasting your valuable time evaluating volume metrics that don’t necessarily help your business grow.

When it comes to marketing, what numbers do you focus on? Let me know in the comments below!