Revenue Marketing Metrics - What's it all about?

The marketing profession can be a tough one to figure out when it comes to titles. A lot of people say they’re in marketing, but exactly which type of marketing are they? They may work in outbound, partner, brand, or cause types. There are also digital and traditional types that should not be left out because some people don’t know the difference.

Revenue Marketing is important because it can lead to revenue increases, revenue growth, and revenue generation. As revenue marketing takes over, companies can see revenue growth and increases in revenue generation. With the advent of digital marketing, companies can target consumers around the world with ease by creating a multi-channel approach.

To leverage the use of data in marketing, it's important to know how to convert potential customers into actual purchases. Empower employees within your business so they can analyse the data and make intelligent decisions to generate revenue. This gives you a better understanding of which strategies and tactics your company should use going forward. It also comes with the potential to help your company's growth.

Revenue marketing is an innovative & data-driven approach to brand marketing that helps companies understand their customer acquisition cost and lifetime value. In today's sales industry, involving the entire team in the process helps in creating better clarity for everyone. It also helps to understand the customer journey and create much more effective strategies along with creating improved customer personas.

What are Revenue Marketing Metrics?

Revenue marketing metrics are a set of performance indicators that measure the effectiveness of a company's marketing efforts in generating revenue. These metrics can help businesses identify which marketing channels, campaigns, and strategies are contributing the most to revenue generation, as well as which areas need improvement.

Revenue marketing is all about driving sales and revenue growth through data and analytics. This approach is different from traditional marketing, which focuses on building brand awareness and generating leads. With revenue marketing, you can tie your marketing efforts directly to your bottom line.

The main ways to achieve this are through targeted campaigns, using marketing automation, and having a strong content marketing strategy. The goal of revenue marketing is to make decisions and take actions that will generate a return on investment (ROI), like making more sales or increasing revenue.

How do you know if this is all being done correctly? Some metrics to consider would be below:

Conversion Rate

Conversion rates are a critical revenue marketing metric. Conversion rates measure the percentage of leads that become customers. By tracking conversion rates, marketers can identify the effectiveness of their marketing campaigns and identify areas for improvement. Conversion rates can also be used to track the effectiveness of individual marketing campaigns, such as email marketing or social media advertising.

Average Order Value (AOV)

Average Order Value (AOV) is a critical metric used in Revenue Marketing to measure the average amount of money spent by customers on each transaction. It is calculated by dividing the total revenue generated by the number of orders made during a specific period.

AOV is related to Revenue Marketing because it helps marketers understand how much money customers are spending on their products or services. By analysing AOV, marketers can identify trends in customer behaviour and adjust their marketing strategies to increase revenue.

For example, if the AOV is low, it may indicate that customers are not buying enough or are purchasing lower-priced items. In this case, marketers can adjust their pricing strategy or create promotions that encourage customers to purchase more products, ultimately increasing the AOV.

On the other hand, if the AOV is high, it may indicate that customers are purchasing high-priced items or that the company has a loyal customer base that is willing to spend more money. In this case, marketers can focus on retaining these customers by providing them with personalised offers and improving the overall customer experience.

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is a metric used to measure the amount of revenue a business can expect to receive every month from its subscription-based products or services. It is a critical metric for businesses that operate on a subscription model, such as software-as-a-service (SaaS) companies.

MRR is important because it provides a predictable, steady revenue stream that can help businesses plan for the future. By tracking MRR, businesses can identify trends in customer behaviour and make data-driven decisions about pricing, marketing, and product development.

If a business sees a decline in MRR over time, it may indicate that customers are cancelling their subscriptions or that there is increased competition in the market. In this case, the business may need to adjust its pricing strategy or invest in product development to retain customers and attract new ones.

Customer Acquisition cost 

Customer acquisition cost (CAC) is another important revenue marketing metric. CAC refers to the total cost of acquiring a new customer, including marketing and sales expenses. The lower the CAC, the more cost-effective your marketing strategy is. By tracking CAC, marketers can identify areas where they can reduce costs and improve their marketing efforts' ROI.

Customer Retention rate

Customer retention rate is also a vital revenue marketing metric. It measures the percentage of customers who continue to do business with your company over time. A high retention rate indicates that your customers are satisfied with your products or services and are likely to continue doing business with you. The retention rate is essential to track because it is much more cost-effective to retain existing customers than to acquire new ones.

Net Promoter Score

Most companies aim to turn potential clients into loyal, repeat customers of their products or services. However, the ultimate level of customer loyalty is achieved when they become advocates for your brand. The Net Promoter Score (NPS) is a metric that measures the likelihood of your customers recommending your business to others. A higher NPS score indicates a greater likelihood of customer advocacy, which is highly beneficial for any business.

Customer Lifetime Value

Customer Lifetime Value (CLV) is the estimated total value that a customer will bring to a business throughout their entire relationship. This metric takes into account factors such as purchase history, frequency of purchases, average order value, and length of time as a customer to calculate the total revenue that a customer is expected to generate.

By understanding the CLV of their customers, businesses can make informed decisions about how much they can afford to spend on marketing, customer acquisition, and retention strategies. It also helps businesses identify their most valuable customers and prioritise efforts to retain them.

Churn Rate

It's not hard to see why companies hate the phrase "track and measure churn rate." It's a difficult term for people to understand. "Churn" refers to customers who unsubscribe or stop using your product. Because of this, companies spend money on ineffective methods of trying to reduce churn such as newsletters that don't get opened. However, it's pretty simple: you need to track and measure what your company is accomplishing with its efforts to truly improve your company's ability to retain customers and drive revenue.

When a company has a high churn rate, it means that people are leaving the company to work at other companies. If it's too high, this can mean that retention efforts aren't working and they need to re-evaluate their strategy. One metric you can't afford not to look at is the churn rate.


Revenue marketing metrics are essential for any business that wants to increase revenue and grow its customer base. By tracking lead generation, customer acquisition cost, retention rate, and conversion rates, marketers can identify trends and patterns in their marketing performance and make data-driven decisions that improve ROI. It is important to track these metrics consistently and over time to evaluate the effectiveness of your marketing strategy and adjust your approach accordingly. With the right metrics in place, businesses can maximise the impact of their marketing efforts to grow their businesses and reach their goals.


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