Top 6 marketing metrics for your Blockchain project
ROI, CAC, CLV… What are those and why do they matter? It’s time to find out more about these important metrics that you shouldn’t avoid if you want your blockchain project to succeed.
ROI (Return On Investment).
It’s pretty straightforward, showing the efficiency of your investments. First, you need to calculate the sum you’ve spent on your project. Team salary, office rent, solutions you had to buy, domains, marketing budget — all of these count as investment. Then, you should summarize your income as the only other figure you’ll need for the following formula.
ROI = (income — investment) ÷ investment × 100
LTV (Lifetime Value)
We all want our clients to stay with us forever, but that’s rarely the case. The lifetime value of the client is an indicator that helps the company understand how much money the client will bring over the entire period of interaction. LTV helps the entrepreneur measure the client’s value — after all, it’s one thing when it is abstract, and quite another to see an approximate number instead. For this formula, you will need: an average check an average number of orders an average “lifecycle” of the client
LTV = income brought by the client during the entire time — costs for attracting and retaining them.
CAC (Customer Acquisition Cost)
The cost of attracting a customer is an indicator that is constantly growing as new businesses appear on the Internet and new advertising campaigns are launched. CAC is a monetary expression of the cost of converting a consumer into a customer — more precisely, the amount that was spent to attract the client’s attention and lead them to the first purchase.
CAC = Total of all expenses/number of clients that were attracted
To get the most accurate result, count the CAC separately for each advertising channel. The lower the indicator is, the more efficient the respective channel is.
CTR (Click-Through-Rate)
The metric shows the ratio between the number of users who clicked on the ad to the number of users who saw it. The click-through rate helps understand the relevance of ads and evaluate the effectiveness of the campaign. The higher the CTR of an ad, the more traffic the company receives to the site.
CTR = total number of clicks on the ad / total number of ad shows * 100%
CPA is an abbreviation of “Cost Per Action”.
This is a payment model for online advertising, when the advertiser pays only for targeted user actions. It is rightfully considered one of the most cost-effective, since it pays not for impressions and clicks on the ad, but for users who have confirmed interest in the product by their actions.
The cost of sale depends on the CPA, which means that it affects the cost of the goods or services that you sell. The more expensive one target action cost you, the higher the cost, and vice versa.
CPA = cost of advertising placement / number of targeted actions
Bounce rate
This site performance indicator shows the percentage of the total number of visits when the user viewed no more than one page or spent less than 15 seconds on the page, without actions. Bounce rate is a relative indicator, as it depends on the behavioral factors of the target audience and the specifics of calculating values by analytical systems.
You can choose to either trust Google data or interpret the results yourself, taking into account the nuances of your business.
According to Google:
High: 70% and above
Average: 50–70%
Normal: 30–50%
Excellent: 25% and below
These are the top major marketing campaign metrics you can use to enhance your advertizing strategy and boost your project’s results.
