The success of a product or a campaign can be measured by many different data. Looking at this information will allow you to understand what worked and what didn’t in a marketing campaign and make better decisions in the future.
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When looking at the results you have at hand, you must look at more than just numbers. A deep analysis of what you have achieved and what you identify as important metrics will help you understand consumer behaviour, improve your products and structure future campaigns in order to reach more people.

If you still need clarification about what metrics are and what you need to consider for your business, we can help. Read on to learn all you need to know about product campaign measurements and what you should pay attention to.

What are metrics?

Metrics are pieces of information that will guide your campaign. They reveal whether your goals were achieved through numbers or other data. They also contribute to the decision-making process in future campaigns, providing insight into what works and what needs to change. Metrics are not just plain numbers. They are data associated with intelligence.

Often, big numbers can catch your attention. However, without more information behind them, they offer nothing. Metrics should go beyond that, providing you with a way to improve.  

An example of numbers that mean nothing without a deep analysis behind them is the number of followers your brand has on social media channels. People who are connected to your product on Instagram, Twitter, TikTok or Facebook must be engaged with your content, showing they are interested in what you have to say. The number of people who decided to follow your page does not mean they are interested, invested or plan to buy what you are offering. To consider this big number a performance metric, you need to understand what drove the number of followers to rise or drop.

The difference between metrics and data

Before diving into what metrics can help you with your marketing strategies and product development, it is important to clarify the difference between data and metrics.

Data is the beginning of metrics. As we discuss, metrics mean analysing numbers in order to make better decisions. Therefore, gathering data first is an important step in establishing and interpreting metrics for your business.

Collecting information on your product and your business must be taken seriously. There are currently many tools that help you find the most relevant data for your campaign, and partnering up with companies like Odore can help you with insights and with the planning of future launches.

For instance, in a campaign, for Armani to relaunch the Code Parfum fragrance, we encouraged customers to claim a free perfume sample through a link. Users registered and provided their information, generating invaluable data for our client and guiding the company’s future marketing efforts.

Data analysts will help you gather and understand the numbers from your campaign, pointing to the best tools to collect the relevant information for your business. Services such as Whatagraph, Improvado, and Funnel can also help you gather and interpret data, creating reports for your campaigns.

Main metrics for product campaigns

There are numerous metrics you can use to understand your product campaigns better. It will all depend on your business goals and the data you collect.

When deciding which ones can benefit your business the most, you must also consider your overall objectives and plans for your company. Metrics can help you beyond communication strategies, providing a path to business growth.

These are the most commonly used metrics when analysing communication and product success.

Customer Acquisition Cost

Customer acquisition cost represents how much, on average, you need to spend in order to target a new customer.
 
For instance, if you spent £ 5,000 in marketing efforts, targeting new clients, and after your campaign ends, you gain 1,000 clients, your Customer Acquisition Cost is £ 5.
 
This metric is crucial when your goal is introducing your brand to new people or increasing your market share.
For this metric, it is also important to calculate the cost of different aspects of your communication campaign. For example, sample production fees, postage costs, or other marketing expenses. The more effective your efforts, the lower the Customer Acquisition Cost.

When developing your strategy, make sure to keep track of everything needed to put your campaign in motion. Some campaigns are cheaper than others, but they might not be as effective.

Customer Lifetime Value

Customer Lifetime Value (LTV) measures your revenue per client as long as they continue to purchase from you. It is an important metric for subscription-based services and is directly connected to the Customer Acquisition Cost.

With LTV, you can better understand the return on investments in creating a product and the viability of expanding your business.

LTV is calculated based on the average price customers pay for your products, the number of payments required, and the number of times a client buys with you.

Engagement

The engagement rate is a crucial metric when discussing digital marketing campaigns or digital products. It measures how long – and how effectively – people engage with your content, your website or your application.

When looking at engagement rates, keeping your goals in mind is essential. If you want your customers to find what they are looking for quickly, data showing they spend a long time browsing and not enough time buying might indicate what needs to change. If your brand has thousands of followers on Instagram but a meagre engagement rate, consider a change of content.

Conversion rate

The conversion rate measures how many people interacted with your ad or product and eventually bought what you are offering. Imagine 20,000 people clicked on an ad on YouTube, and 1,000 ended up buying your product. This means your conversion rate with that ad was 5%.

This metric helps you understand the success of your communication efforts.

For instance, when it comes to product sample campaigns, the conversion rate is high. Understanding how many people received or claimed your product and later bought it themselves is a good way to guide your strategy.

Click-through rate

Click-through rate (CTR) measures how many times a user clicks on a link or section of your website or app but takes into consideration how many times they were presented with this option.

A low CTR rate indicates that whatever your brand tells users is not captivating enough or that customers do not understand the importance of clicking on something. The metric is calculated based on the number of clicks and the number of impressions on an ad or link.

Repurchase rate

The repurchase rate is an essential metric when analysing the success of a product. It takes into account how long it takes for customers to buy an item again or how likely they are to buy and recommend your brand.

More than measuring sales, this metric helps you understand your customers’ behaviour, revealing how loyal they are to your product and how often your products need to be replaced.

When using a product sample strategy, you can also track how often your customers will claim a sample or engage with your brand through your channels. This metric, combined with the conversion rate, will give you a better understanding of the success of sending products to your customers.

Daily Active Users (DAU)

Imagine you have a website or an app that is key for your business and communication strategies. Measuring how many active users you have every day can be extremely useful.
 
In order to correctly register the DAU, you need to define what a user is and what kind of action you would like them to perform according to your business goals.

Churn

Churn is a metric calculating the rate of people who stop using a product. The aim is to keep the churn rate as low as possible.

This metric can indicate the loyalty of your customers and the viability of expansion, considering how likely people are to keep buying your products. A high churn rate might reveal a need for improvement and significant changes.

To calculate the churn rate, you must divide the number of people who cancelled your service or didn’t buy again by the number of active clients you have and then multiply it by 100, giving you a percentage rate of churn.

Customer satisfaction

Whatever your business might be, it is likely that you want your customers to be happy with their purchases. There are many different methods to measure your customer’s satisfaction, and it will depend on your business goals and how your customers interact with your product.

For many businesses, it is a good idea to encourage feedback from clients and potential buyers. With a marketing campaign offering samples and providing a platform for customers to say what they thought of your product, you can easily measure customer satisfaction and guide your business decisions accordingly.

Other ways of collecting data include monitoring comments on social media and creating a customer service channel on your website.

For sampling campaigns, providing a way for your customers to reach out to you and give you their opinions is a path to effectively measure customer satisfaction. Once they have – and have tried – your product, they can give you honest feedback.  

How to choose metrics?

No business is like the other. Therefore, defining what metrics you should use and what are unnecessary will depend on your product, the sector your company operates in, and your overall business goals.

The type of marketing strategy you use will also guide your metrics. As we discussed, with a sample distribution strategy, it is possible to generate meaningful data about your product, the reach of your brand and the behaviour of your customers.

In a campaign for Prada’s new fragrance Paradoxe, we analysed impressions on ads, the number of people claiming a sample, CTR and cost per click, among other metrics. By offering customers the possibility to register and receive more communication from the brand, we have paved the way for future marketing campaigns.

Our monitoring also helped us understand that, for Prada, customers are more interested in ads featured on relevant websites and on social media, clicking on the link provided and claiming their free sample. These metrics will help guide future campaigns and Prada’s business goals.

Final thoughts on metrics

The success of your product or your marketing campaign depends heavily on your business goals and aims. Understanding the sector in which you operate, the possibilities your companies face and the behaviour of your potential customers is crucial. All of these will help you determine the best way to measure success.

It is essential to keep in mind that numbers alone are not metrics. Numbers must provide you with a better way forward, a more profound knowledge of your brand and a path to more thoughtful decisions. Metrics are analyses based on data, adding intelligence to your business.

When realising a new product, expanding your business or making challenging decisions, make sure you can collect and analyse the data that will come from these actions, giving you the metrics to plan your company’s future.

Partnering up with a professional product marketing agency will give you better insights into how to use data to guide your marketing strategy.