#CheatSheet | 5 Performance Marketing KPIs you should monitor

Monitoring the right metrics or KPIs is very important in performance marketing. But with the changing dynamics of user-behaviour and availability of advanced in-app analytics, new metrics are coming to light. This calls for a realignment of the marketing plan, which involves revisiting the marketing strategy, reallocating the budget, and also including additional parameters that need to be monitored.

In this blog-post, let’s look at 5 primary metrics that are still very relevant in performance marketing campaigns.

1) Cost of customer acquisition (CAC)

While running a performance marketing campaign, it’s important to evaluate the cost of acquiring users at every phase. Looking into your traffic sources and comparing their performance from time to time, can help you lower the CAC and optimise your marketing ROI.

For eg, if you spend Rs. 50,000 on your marketing campaign and acquire 500 users over a time period, your CAC is Rs. 100.

2) Customer life-time value (CLTV or just LTV)

If you’re serious about improving the retention and monetisation rates of your App, you must have all eyes on determining the CLTV (lifetime value) of your users.

LTV is defined as the total value or revenue generating potential of a user over his or her lifetime.

With the mounting cost of user acquisition, it is extremely important to evaluate the LTV of users. In fact, a strategic mobile marketing plan would be to acquire users with LTVs greater than the cost per install (CPI).

While calculating LTV, a lot of important factors about the user is taken into account in the prediction model. Starting from how much a user is spending per visit, the total number of visits, all costs involved in acquiring the user, etc. After subtracting all the marketing or sales costs incurred on the user from the revenue generated by the user, you can determine the LTV of the user and predict the net profit that can be obtained from a future relationship with the user.

3) Cost of Retargeting

Another significant metric to be monitored here is the cost of retargeting. By this we mean the entire spends directed towards running retargeting campaigns aimed at users who have made purchases on your app, viewed a particular product or service, or probably even added items to their shopping cart but did not complete the transaction for whatsoever reasons. So as a mobile marketer, you might be reaching out to them by showing them relevant retargeting product offers once or twice or maybe a few more times.

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