Ten analytics jargons you need to know for your Growth Marketing campaigns
Before you begin, I am excluding SEO and Google Analytics related Jargons for now which I will cover in a separate post.
- Cohort: is a group of subjects who share a defining characteristic. In marketing, it used to classify users who sign in a particular period of time, mostly months. It gets easier to identify/analyse their usage as per cohorts.
- Marketing Funnel: it is used to describe the lead nurturing sequence by which customers move from awareness to purchase. In more simple words it’s your customer’s journey with you.
- Customer Retention rate ( CRR): This is the percentage of customers company is able to retain over a period of time. This is the leading indicator of your growth hacking experiments
- Churn rate: Customers lost over a period of time. This is opposite of retention rate and you need to closely monitor this and see how you can improve this. Here experiments on customer support will be really helpful
- Customer acquisition cost: Total sales + Marketing cost divided by total no of customers acquired in that period. Why is this important? Because you need to understand how much you are spending now & what you can do to reduce that cost ( referrals maybe). This will give you your monetization strategy, pricing strategy and how soon you can recover this cost.
- Lifetime value (LTV) or customer Lifetime value: This is how much money you will make per customer over the lifetime of your customer. The tricky part is to guess how many months/years that customer will continue to remain your customer. Dig your past data and do some guesstimation. Simple formulae to calculate how much money you will make per customers over the period when the customer will keep using your service and subtract acquisition cost for your customer. This is the single most important metric you should have in your fingertips. Just keep thinking and do growth experiments to improve that. VCs will eat your head on this.
- Viral Coefficient: This is the number of new customers you get through your existing “satisfied” customers. Basically, it gives you an indication of how your referrals are performing. So your growth experiments need to target referrals from your existing customers.
- A/B testing: How do you know button placement on your app is right or the text of the website is understandable to your customer. This is what A/B testing helps. Through this compare two versions by interfacing with your customers to check which one is performing better ( that's the real test right ?? ). Don't worry there are tools to help you in that.
- Bounce rate: It increases when a visitor leaves without taking any action on your website. Main culprits: Low speed, confusing content, no or less call to action buttons.
- Micro-influencers: these are dudes and babes who have between 1,000 to 10 lakh followers on various social media platforms. Such micro-influencers have niche audiences and can be very very effective for your brand to reach out to a larger audience at a very very effective cost. Brandpiper can help you with this ..see our campaigns.
Why this blog? I recently learnt all this through a bunch of youngsters who also happen to be my marketing agency, BrandPipers.
I have recently invested in BrandPipers (https://www.brandpipers.co/) and I believe they are doing an awesome job in digital marketing space. I was totally impressed as a client when they were handling SpiderG’s account. I was impressed with their logo as well
I wanted to be a part of their growth story so offered them to invest a little amount which can contribute to their AI/ML-driven influencer marketing product they are developing.