Notas y artículos de Sandra Jaramillo | Blog de emBlue

CTR, CAC, CPC, CPM and more: What KPIs cannot be missing in your business?

Launching a new digital marketing campaign involves taking a lot of details into account. Among them, it is necessary to define the metrics that you will use to measure your results. After all, what is not measured cannot be improved! Therefore, in this note we are going to tell you which are the KPI’s that cannot be missing in your business, including the CTR marketing and all those that are an essential part of the buyer’s journey.

With the growing number of digital channels that businesses have access to, it can be difficult to navigate the sea of available data. What to look at Where to keep an eye on how our marketing efforts are performing?

The key to all of this are the well-known KPI’s. Of English Key Performance Indicators , these are the key performance indicators for our marketing campaigns .

These are essential metrics to know how the different actions implemented in a business worked , in relation to the proposed objective.

In this sense, indicators make it possible to transform data into actionable information.. What at the same time provides very precise insights on the behavior of a campaign and users in relation to the actions that the company proposed.

Now, what are the most important metrics for a business? These are directly related to your goals. For this reason, the same indicators will not be used in all cases. But nevertheless, If we talk about the essential KPIs, we cannot fail to highlight: CTR marketing, CAC, CPC and CPM.

In this note, we will tell you what allows each of these KPIs to be measured. But before that, let’s find out the importance of the Customer Journey or customer journey in choosing these metrics.

The appropriate KPI’s in relation to the Customer Journey

When planning your marketing actions, it is essential to establish objectives for each campaign. This will provide you with a better understanding of the metrics to use to measure your results.

For this, it may be interesting to consider the main stages of the Customer Journey .. In other words, the instances that it goes through on the way to purchase.

In general, four stages are distinguished: knowledge, interest, consideration and sale.. You can use each of them to identify which key metrics can be used to measure your marketing efforts.

  • Knowledge. In this instance, the user may not yet know your business and the solutions it provides. Therefore, the key is to make yourself known. How to do it? Online advertising, SEO and social networks are the most used routes. How do we measure it? CPM can be one of the most useful options.
  • Interest. At this time the user already shows some interest in your business proposal, therefore, it is a key moment to capture their data and incorporate it into your contact list. What tools will we use? Banners pop ups to attract subscribers, marketing automation and, of course, email marketing . How do we measure it? With CTR marketing and CPC.
  • Consideration. In this instance, the user still does not know if your business is the best option to solve their problem. Therefore, it is very likely that you are analyzing multiple alternatives. What actions can you take? A sequence of emails could be key to offering discounts and promotions, talking about the benefits of your product and making known success stories. How do we measure it? CTR marketing and CPA.
  • Sale. Finally, the sale has been finalized. And here is two fundamental metrics: CAC and CPA .

What is CPM?

A key metric in the knowledge stage is CPM or Cost per thousand. This is directly related to the impressions of your campaigns and therefore, offers a fairly clear view of your brand awareness .

What are impressions? Are the number of times an ad is shown to a user. CPM measures the cost of an ad per 1,000 impressions. For example, if you set a CPM of $ 1, your business will have to pay $ 1 for every thousand impressions of your ad.

The CPM is therefore a good metric to apply when the objective is to reach a certain number of people . This way, you will be able to know how successful your marketing efforts have been in achieving this goal.

What is CTR marketing?

Clicks are a clear indication of how the ad or message shown by a certain brand impacts the user. This is the number of times a link is clicked. These links are usually placed in advertisements and in email marketing campaigns. A good click-through rate can mean that those actions are going well.

Among the metrics that allow measuring the number of times users click on a link, CTR marketing stands out. The Click Through Rate (CTR) or Click Rate is a key KPI, because it shows the number of times a link was clicked by the number of times it was displayed. Therefore, it is related to the number of impressions.

Thus, a high CTR implies that your marketing actions are directing as many people as possible to whatever you are promoting.. If people are clicking, it means they are interested in what your business has to offer. Therefore it is a key metric at the stage of interest within the client journey e .

CTR marketing is a KPI that can also be applied to both advertisements and email marketing. In the latter case, it represents the number of recipients who clicked on one or more of the links you include in your emails. To calculate it, the total number of clicks on the number of emails sent is measured.

This metric can also be used in the consideration stage , especially if you focus your actions on emailing campaigns.

CTR marketing can be a measurement tool that provides precise insights on how relevant your messages are to your target audience.. Therefore, it is an essential metric to include in your campaigns.

What is CPC?

The well-known Cost per Click (CPC) It is another of the key indicators to use if what you want is to measure your clicks. In this case, it is a form of payment according to the number of clicks made on an ad. This is a model used, for example, when buying keywords in Google AdWords.

It is a format that can be useful to know the precise results of your ads. Since the budget is spent based on the number of clicks it receives. Which somehow reflects how relevant the ad you are showing is to the user. At this point it resembles CTR marketing.

Therefore, the CPC is an interesting indicator to understand the interest of the public. Hence, it may be key in this stage of the Customer Journey .

What is CAC?

Another fundamental KPI: Customer Acquisition Cost (CAC). It is a metric ideal for use at the end of the customer journey. That is, after the sale is finalized. Is expresses what your company spends on acquiring a new customer .

Thus, you can assess how much money you have used to impact those users and convert them into customers. You can make this measurement in certain periods, that is, monthly, quarterly, semi-annually or annually.

What is CPA?

Something that usually happens is to confuse the Customer Acquisition Cost with the Cost per Acquisition (CPA). While CAC helps measure how much a customer who ends up buying costs, the CPA allows you to answer: did this campaign make my business earn money?

In this way, the CPA is a fundamental metric to know the financial impact of your campaigns.. In this sense, gives a clearer view of Return on Investment (ROI) .

If you want to know in depth how to calculate the ROI in your campaigns, do not miss this note .

The CPA can be applied in different stages of the Customer Journey , since it can be measured during the development of a campaign, especially in the last three instances: Interest, Consideration and Sale.

To do this, the total amount invested is taken, over the total number of conversions. In this case, When we talk about conversion we refer to the desired actions carried out by the user in relation to the brand. It can be to register for the newsletter, give your data in exchange for a lead magnet, register for a webinar and even buy a product, among other actions. For this reason, the CPA cannot be missing from the list of KPI’s for a business .

Now that you know the main metrics to measure the results of your marketing actions, you have more tools to get closer to the commercial objectives of your business. The best thing is that in case of not obtaining the desired fruits, thanks to these KPI’s you can know where to make improvements to optimize your campaigns. To measure and improve!

FAQ about CTR marketing

What is KPI and what is it for?

In digital marketing, there is no successful campaign without KPIs. KPIs are performance indicators that will reveal whether our strategies were successful or not . They are the metrics that will make the business objectives be met.

What is CTR marketing?

The CTR is that metric that indicates the percentage of clicks on a piece, over the number of impressions. It can be applied to an email marketing piece, in a social media ad, or on buttons within a website.

️ What are the main KPIs?

Within a digital marketing strategy and depending on the platforms used to implement it, you will find the following KPIs:

  • CPM (cost per thousand impressions)
  • CTR (percentage of clicks obtained)
  • CPC (cost per click)
  • CAC (cost per customer acquisition)
  • CPA (cost per acquisition)

Types of customer segmentation and the secret to selling more

In order to provide users with exactly what they are looking for at the right time, you need to know them, know who they are. The key to achieving this is customer segmentation . If you haven’t heard of it yet or if you have just a vague idea about it, don’t worry! In this note we will tell you everything.

✋ But before giving you the details about what segmentation is and how to carry it out in your business, some statistics to keep in mind:

  • 91% of consumers say they would buy from brands that provide offers and recommendations relevant to them.
  • 80% of people prefer to buy from a company that offers personalized experiences.
  • Marketers see an average 56% increase in sales when they offer personalized experiences.

What conclusion can we draw from all this? So that your business stands out and you can give users exactly what they hope to get, you need to customize the experience. What is the way to achieve it? Customer segmentation.

Now, the time has come to find out what this strategy is about.

What is customer segmentation?

Customer segmentation is a process by which a company is in charge of grouping the users of its database according to various parameters. In general, these contacts are grouped according to their characteristics, interests and consumption.

In this way, we can say that There are various types of customer segmentation. There is no single way to classify a user base. This is largely due to the fact that within the same audience you can have different needs or objectives, depending on the characteristics of each individual and the moment or stage of the journey in which they are.

☝️ Not all people have the same needs at the same time and not all are impacted in the same way by the same messages.

What do we mean by this? Even if you sell a single product or service, the way you approach each user will not be the same in each case. Once again, the Customer Journey has enormous relevance.

Customer segmentation examples : if a user has just left their details to sign up for the newsletter, we will most likely approach them with a welcome message and some valuable content to start introducing it in the products that the company sells. Above all, we will seek that you understand the benefits or solutions that you can find. But if a user has already bought and we have stopped receiving news from him for a long time, we will surely use recovery emails to encourage you to return. The way to approach it will be totally different in each case.

Of course, this is just one of the criteria that you can take into account when segmenting your audience. Next, we are going to know what other ways you can do it.

Types of customer segmentation

So far we have made it clear that customer segmentation consists of dividing into groups the different users that are linked to your business . The objective of this strategy is to offer increasingly personalized messages and experiences and thus achieve more conversions.

We also mentioned before that there are different types of customer segmentation, do you want to know what they are? Here we go!

Demographic segmentation

This is possibly one of the types of customer segmentation most used by companies. Usually the first criterion to use to group users. When we talk about demographics we mean:

  • Age.
  • Gender.
  • Education.
  • Civil status.
  • Family size.
  • Occupation.
  • Income level.

It is, basically, the breakdown of the users that are part of the company’s database, based on superficial traits such as age or gender .

This helps us answer who these people are in our contact base. Without a doubt, it is the easiest data to obtain, because it is a less invasive segmentation than others. The user only needs to complete their data through a form or a survey and with that we would already have the information.

Segmentation of customers by demographic data saves time and places us more clearly in front of our audience , understanding who we are targeting.

However, we must say that, as we mentioned before, this criterion gives us superficial information, so it does not allow us to know the users in depth. To do this, we will need to combine it with another type of segmentation that we will see in the following points.

Geographical segmentation

If we talk about customer segmentation examples, this is another of the clearest. Is about divide users based on geographic location criteria. In other words, it is a type of segmentation designed to answer where the people in our contact base are. In this way, the criteria to identify when we group consumers according to their physical location are:

  • Country.
  • Region.
  • Town.
  • Postal Code.

This type of customer segmentation can have a significant influence on interactions in physical stores. Therefore, it is one of the criteria most used by businesses that are committed to the local marketing .

In addition, consumers grouped in similar geographical areas may share similar preferences, so applying this segmentation criterion within your strategy can be very useful.

Behavioral segmentation

So far we have presented you with two types of customer segmentation that help answer the who and where of your database. Now we are going to introduce you to another kind of segmentation that can help you answer How do users behave?

This is behavioral segmentation. It is based on the behavior patterns of people while interacting with a brand. Here we delve into the habits of the user; the timing, frequency and level of use of a tool, product or platform; added to the stage in which you are in your shopping journey; and their attitude towards the brand.

Some criteria to use:

  • Purchasing reason. What are users looking for? Best price, quality, or great reviews? What difficulty are they trying to solve?
  • Chance. Users are often looking for a product for a particular occasion or event. This is a criterion to take into account at the time of segment a contact base .
  • Profits. In this case, it is important to identify what benefit potential buyers are looking for: get the latest technology, the safest product, take advantage of the discount, etc.
  • Stage of the purchase journey. In what stage is the user? Are you looking for information for a future purchase or are you ready to try the brand’s product for the first time?
  • Commitment level. Here we will focus on the degree of customer loyalty. Is it a recurring buyer who also recommends the brand? Are you a customer who used to buy and has stopped?

This class of customer targeting can be used to gain insight into user experience . It also helps you identify potential future customers who are more likely to buy a product.

Psychographic segmentation

To close the list of the different types of customer segmentation that you can apply in your business, we must mention psychography. What is this and why is it important to you? Well, although it may seem that the concept is quite far from the world of marketing and sales, the truth is that it is about one of the key criteria for grouping users .

Psychographic segmentation It involves taking into account the lifestyle, beliefs, personality traits and interests of the users. Unlike the demographic or behavioral criterion, the psychographic allows you to answer why a person buys your product .

What is usually taken into account in this kind of segmentation?

  • Hobbies, activities, or interests.
  • Habits
  • Opinions.
  • Personality or attitude.
  • Lifestyle.
  • Social status.

As we can see, this type of segmentation implies a deeper understanding of the audience.. However, by grouping users in this way, the business can be better prepared to tailor its strategies to the expectations of current and potential customers.

How to classify and segment your customers? Step by Step

You already know what segmentation is and what are the main criteria that you can use to group users in your database. What you still don’t know is how to put all this into practice. In other words How to do customer segmentation? We share the fundamental steps to achieve it.

  1. Define targeting targets. Every time we segment clients it is important to have a goal to achieve. Define what problems we are trying to solve through segmentation, what we hope to achieve from this activity, what is the desired result. This objective should be as specific as possible and at the same time, measurable.
  2. Set the characteristics of segmentation. In this case, it is important to establish how many segments are to be created, from what sources the data will be extracted, what tools will be used and what criteria will be applied, among other points.
  3. Gather the data. The key to constituting each segment is the data, without this information it would be an impossible task. This step consists of extracting this data from the sources that the company uses and bringing it together in one place to classify it.
  4. Define the types of segmentation to use. In this case, it is necessary to define what criteria or characteristics will be taken into account to segment customers: demographic, geographic, behavioral or psychographic data.
  5. Develop customer segments. With all the previous steps, we are now in a position to create our customer segments, that is, to distribute the users in each group or category based on the criteria that we have previously established.

Why segment customers?

As we said at the beginning, segmenting customers is one of the alternatives to personalize the user experience. This leads to another advantage: by providing more relevant experiences, the brand can achieve better results. Segmentation is undoubtedly one of the secrets to selling more.

What we must bear in mind is that if a company knows its audience better and understands more precisely what their needs and motivations are, it can create more specific marketing campaigns.. Something like to do one-to-one marketing. The user feels that the brand understands their problem and that it speaks directly to them about what interests them.

If you know who you are targeting, you can implement more effective lead nurturing strategies, incentivize buybacks , and even wake up inactive users .

Likewise, segmentation allows you to take full advantage of marketing automation to automate shipments to each segment , while still personalizing each interaction, but without wasting an extra minute. With Automation you can save a lot of time to grow your business!

In addition, multiple campaigns can be developed, each designed and targeted to a different segment within a larger customer base. It does not matter the size of that listing, You can impact each group with relevant messages that, in turn, can help you close more sales .

As if this were not enough, the campaigns that are better targeted provide another benefit: they allow you to allocate the expenses of marketing actions strategically .

In short, customer segmentation helps to find greater business opportunities, optimize communication, consolidate the relationship with users and achieve better results. Are you ready to implement it?

Do not forget that to implement this kind of strategy you need the right tools on your side. Discover the solution emBlue for your business.

FAQ on Types of Segmentation

What is segmentation?

Segmentation is that technique that is based on dividing and classifying leads, prospects or clients according to some type of interests or characteristics, in order to send personalized messages with strategies for each group.

What types of customer segmentation are there?

  • Geographical segmentation
  • Demographic segmentation
  • Behavioral segmentation
  • Psychographic Segmentation

️ Why segment customers?

Segmenting customers is a technique that will allow you to know who and how many people are in each stage of your customer journey, their level of commitment to your brand and their proximity to the purchase or buyback. You will be able to create strategies to move them towards your business objective.