Which metrics should you track with One-Click Report?

Do you know the difference between CAC and CPA? Or the difference between LTV and CLV? Nowadays, there are so many metrics included in your marketing analytics that it’s hard to know which ones are most relevant to you and your business. In this article, we’ll be covering the most meaningful metrics for your business, which you can view in an easy-to-understand way with Madgicx One-Click Report. 

List of the 14 most important marketing metrics 

It can be confusing to look at your marketing analytics - a vast amount of data to be let loose. With so many metrics and acronyms, it leaves you uncertain which metrics to look at to help you gain insight into your business. As a result, we’ve assembled a list of the most meaningful metrics that can help grow your business. Here they are:

Revenue metrics

• ROAS - Return on ad spend
• NC-ROAS - New customer return on ad spend
• MER - Marketing Efficiency Ratio
• NMER - New customer marketing efficiency ratio
• Net Profit - Revenue minus all expenses

Customer metrics

• CAC - Customer acquisition cost (not to be confused with Cost per Acquisition)
• NC-CAC - New customer acquisition cost
• LTV - Lifetime value of your customers
• LTV/CAC - Lifetime value over cost per acquisition

Success metrics - conversion funnel

• Impressions - Number of times your content is delivered to a feed 
• CTR - Click-through rate 
• Page view - When a web page is loaded or reloaded in a browser
• Conversion rate - Percentage of users who completed a desired action

Cost metrics

• CPC - Cost per click
• CPM - Cost per mille (= one thousand impressions)
• Cost per result - Cost of each user action you specify

But what do they actually mean? Each metric unpacked

It’s one thing to read about what the metric is and another to understand its value and purpose and how it can help you better understand your business. Below, we’ll zoom in on each metric to give you their vital statistics so you can start customizing your reports.

Revenue metrics

These metrics are all based on the money you make from your advertising.

ROAS (Return on ad spend)

This tells you how much money you make for every dollar you spend on advertising. So, the higher the number, the better! 

Why track it: ROAS tells you how well your campaign performs and how your ads translate into real revenue.

Formula: 

ROAS = Revenue / Amount Spent

NC-ROAS (New customer ROAS)

This is similar to ROAS but specifically looks at how much money brand new customers bring in for every dollar spent on ads. These are customers who are purchasing for the first time.

Why track it: Not only does it tell you how much you’re spending to bring in each new customer, but NC-ROAS tells you if you’re bringing in enough new customers! Because if not, you may as well close your doors. Sustainability is key as too many businesses rely on the income from their current clients when they should rather be focusing on maintaining a steady influx of brand-new customers. 

Formula: 

NC-ROAS = Total new customer revenue / Total ad spend

MER (Marketing efficiency ratio) or NMER (New customer marketing efficiency ratio)

This metric helps us understand how efficiently we're spending on marketing.

‍Why track it: It measures success at a high level across all marketing channels compared to ROAS, which zooms in on particular channels, campaigns, ad sets, or ads. MER tells you how much of your overall investment translates into sales and revenue, thereby indicating your marketing cost efficiency.

Formula: 

MER = Total sales revenue / Total marketing spend over the same period

Net Profit

This is the money you make after subtracting your landed cost. These are all your expenses related to creating and selling your product, including things like production, shipping, and other expenses. 

Why track it: It’s a growth indicator that tells you how much money you make from your sales. Furthermore, this can show you when you should invest in expanding your business and when you should cut costs.

Formula: 

Net Profit = Total revenue - All expenses

Customer metrics

By analyzing these metrics, you get a better understanding of data relating specifically to customers. 

CAC (Customer acquisition cost)

‍How much money it costs to gain each customer, including ad spend and other costs related to obtaining new customers. It's different from CPA or 'Cost per Acquisition' as it looks at the entire cost of getting a new customer, not just the cost of ads.

Why track it: CAC helps you understand how much you need to invest in getting new customers and whether you’re profitable at this or not. This is one of your primary business costs, and if you manage to lower it, you can significantly increase your profitability. Some businesses might tolerate a high CAC if they can retain customers, maintain a high LTV, and leverage upsell and cross-sell opportunities.

Formula:

‍CAC = Total full-funnel ad spend + Other marketing costs / Number of customers acquired

NCAC (New customer acquisition cost)

‍This is the cost specifically associated with acquiring brand new customers based on ad budget and other real-world expenses. 

Why track it: Indicates profitability - how much you spend on marketing to get a brand new customer so you can ensure you don’t spend more than the revenue they bring in.

Formula: 

NCAC = Total acquisition ad spend + Other marketing costs / Number of new customers acquired

LTV (Lifetime value)

This is the average amount of revenue customers generate throughout their lifespan as your clients. 

Why track it: Understand how valuable each customer is in the long run so you can come up with ways to nurture them and keep them happy. You can also strategize on how to increase this figure by both lifespan and revenue. 

Formula: 

LTV = Average order value (AOV) * Average purchase frequency (APF) * Average customer lifespan (ACL)

LTV/CAC (Lifetime value to cost per acquisition ratio)

This shows you if the amount of money a customer pays you over their lifetime is higher than the costs to acquire them. It helps make sure you're not spending too much to get each customer.

Why track it: This ratio indicates the overall profitability of the business.

Formula: 

(Lifetime value / Customer acquisition cost) to a ratio of 1, or LTV/CAC:1

Success metrics - conversion funnel

When you see these metrics, they indicate definite results. They are your conversions and the final stage of the marketing funnel. These audience-based metrics could be several different things, including: 

Impressions

‍This is the number of times your ad or content is displayed to people, whether it’s clicked or not, and whether they are seeing it for the first time or not - it’s the total number of times it was shown. It’s important to note this is not the same as reach. The main difference between impressions and reach is that reach is the number of people who may have seen your content vs the number of times it was displayed to people.

Why track it: This is your starting point or base plate for the rest of your metrics. Without your impressions, the other metrics can’t be calculated. Further along down the funnel, you can understand how many impressions are required to deliver the results you want.

CTR (Click-through rate) %

This percentage tells us how many people clicked on our ad compared to how many saw it. 

Why track it: A higher CTR means more people are interested in your offer.

Formula: 

CTR % = Total clicks / Total impressions * 100

Page view‍

This counts how many times people have visited a particular page on our website. 

Why track it: This shows us how many people actually reached the website and how many drop off before the page loads, indicating we should improve the load speed. 

Conversion rate

This tells us the number of people who took the desired action as a percentage of the number of website visitors.

Why track it: It indicates how many people out of all web visitors take you up on your offer from the beginning to the end of your sales funnel, thereby completing your desired customer journey. 

Formula: 

Conversion rate = Total conversions / Total ad engagement or website visits

Cost metrics

Lastly, these metrics all relate to the costs you are charged for certain instances or results.

CPC (Cost per click)

‍The amount you pay every time someone clicks on your ads.

Why track it: It’s a great way to monitor how much you're spending to get people to visit your website.

Formula: 

CPC = Total cost of clicks / Total number of clicks

CPM (Cost per mille)

This is the cost for 1,000 ad impressions. 

Why track it: It shows you how much you pay for advertising, especially on Meta. If your CPM is high, it will cost you more to reach more people and drive more conversions. If your CPM is low, it means you can achieve more with a lower ad budget. 

Formula: 

CPM = Total campaign cost / Number of impressions * 1,000

Cost per result (e.g., purchase, lead, video views, message)

‍This shows how much money you're spending to get a particular action, like a purchase or a sign-up. 

Why track it: It helps you understand the cost-effectiveness of your campaigns and monitor how much you’re spending to achieve a specific user action.

Formula: 

CPR = Total amount spent / Total number of results

Now that you have this list of THE metrics to watch, you can go ahead and customize your One-Click Report to make sure you’ve got all the meaningful business data you need. Better yet, you can pick one of the prebuilt report templates based on your business type or the data you want to see and add or remove widgets as you see fit. 

Once you’ve got your template sorted, you can view it whenever you want for accurate data in real-time or share it.