What is a metric, really, in the marketing terms? Metrics, specifically in the aspect of search engine optimization, is such a broad topic that almost involves everything. The measurement of your success and failure rate is one of the critical marketing strategies that any business must perform every now and then. If you have not used such method, then you have missed out on the times where you could have foreseen failures and experience successes.

A critical mistake that many SEO companies unconsciously make is that they give too much focus on new traffic while dropping out other important factors, which won’t do any good to any of their clients. Admittedly, new traffic has really high potential to make a business grow, however, what SEO companies must do is to first give more importance on metrics so that they can reap the full benefits of the new traffic. And so, if you want to know more about the five important marketing formulas, continue reading below.

1. The ROI Formula

Your ROI or Return On Investment will enable you to measure and compare your success and failure rate of your investment. This is the most common and simple and yet highly useful formula that complements well with other marketing strategies that will help you create a successful business plan. ROI is not only limited to monetary investments because it can also be used to identify how successful your SEO campaign is.

2. The CPA Formula

CPA Formula, or also known as Cost Per Action or Cost Per Acquisition is a formula that will give the amount a business has used in order to acquire something. For instance, such acquisition or purchase can mean the money spent on a business’ SEO service provider. This marketing metric can also assist in defining your marketing strategies (i.e. campaigns and advertisements) giving you an amount per revenue created based on the strategy.

3. The ROAS Formula

The Return On Advertising Spend (ROAS) Formula is used to measure the profits generated from advertising. This particular formula can greatly benefit your SEO campaign especially to those businesses whose clientele are based on referrals. In their case, if they can know how much they are getting because of their advertisements, then they can make some improvements on their marketing campaign. Remember that the results of your advertisement must be able to justify the cost of your advertisement. In that way, you can guarantee that you’re not wasting your money on such ads.

4. The CLV Formula

The Customer Lifetime Value metric, from the name itself, aims to build customer loyalty that will last for a long period of time. Your customer must have the desire and trust to choose your business and brand. In the CLV formula, it starts to work on the very first user interaction up until the last one. Did you know that in some countries, CLV is considered as an extremely valuable indicator of a business’ success? So, you may have to pay attention to this one sooner than you may expect.

5. The CRR Formula

The Customer Retention Rate Formula allows you to evaluate a loyal customer’s frequency of purchase. Since attracting new customers costs much than retaining the current ones, so it pays to know why your loyal customers are staying loyal.