7 Marketing Metrics Every Perth Business Should Track
Impressions and likes feel good but don't pay bills. These seven metrics actually tell you if your marketing investment is working.
Paul Saunders
Founder, Smash It Marketing
"Our Instagram post got 500 likes!"
Great. How many became customers?
Most businesses track the wrong metrics. They measure activity instead of results. They celebrate engagement while ignoring conversion.
Here are the seven metrics that actually matter.
1. Customer Acquisition Cost (CAC)
What it measures: How much you spend to acquire one new customer.
How to calculate: Total marketing spend ÷ Number of new customers
Why it matters: If acquiring a customer costs more than their first purchase, you're losing money. CAC tells you whether your marketing efficiency allows profitable growth.
Benchmark: Your CAC should be significantly lower than customer lifetime value (see #2).
2. Customer Lifetime Value (CLV)
What it measures: The total revenue a customer generates over their relationship with your business.
How to calculate: Average purchase value × Purchase frequency × Average customer lifespan
Why it matters: CLV determines how much you can afford to spend acquiring customers. A customer worth $10,000 over five years justifies higher acquisition costs than a one-time $100 buyer.
Benchmark: CLV should be at least 3x your CAC for sustainable growth.
3. Return on Ad Spend (ROAS)
How to calculate: Revenue from ads ÷ Cost of ads
Why it matters: ROAS tells you whether your advertising makes money. A ROAS of 3:1 means every $1 spent generates $3 in revenue.
Benchmark: Varies by industry. For most service businesses, 3:1 or higher indicates healthy campaigns. E-commerce often needs 4:1+ due to product costs.
4. Cost Per Lead (CPL)
What it measures: How much you spend to generate one qualified lead.
How to calculate: Marketing spend ÷ Number of leads generated
Why it matters: CPL helps you compare channel efficiency. If Google Ads generates leads at $50 and Facebook at $200, you know where to invest more.
Benchmark: Depends on your average sale value. Professional services often see $100-$500 CPL. Consumer services might target $20-$50.
5. Lead Conversion Rate
What it measures: The percentage of leads that become customers.
How to calculate: (Customers ÷ Leads) × 100
Why it matters: Low conversion rates suggest problems with lead quality, sales process, or offer. High conversion rates indicate strong alignment between marketing and sales.
Benchmark: B2B services typically convert 5-15% of qualified leads. Consumer businesses vary widely.
6. Website Conversion Rate
What it measures: The percentage of website visitors who take a desired action (enquiry, purchase, signup).
How to calculate: (Conversions ÷ Total visitors) × 100
Why it matters: Conversion rate reveals whether your website actually works. Driving traffic to a site that doesn't convert wastes marketing spend.
Benchmark: Average is 2-3% for enquiry forms. High-performing sites achieve 5-10%+.
7. Marketing ROI
What it measures: The overall return on your marketing investment.
How to calculate: (Revenue from marketing - Marketing cost) ÷ Marketing cost × 100
Why it matters: This is the ultimate metric. Positive ROI means marketing makes money. Negative ROI means you're subsidising marketing from other revenue.
Benchmark: Minimum acceptable is 0% (break even). Target 100%+ (doubling your money).
Metrics to Stop Tracking
These metrics feel important but rarely correlate with business results:
Social media followers: A large following means nothing if they don't buy.
Page views: Traffic without conversion is just server costs.
Email open rates: Opens don't equal sales.
Impressions: Being seen isn't the same as being chosen.
Likes and shares: Engagement metrics that rarely translate to revenue.
Track these if you want, but don't use them to make spending decisions.
Setting Up Proper Tracking
Google Analytics
Set up goal tracking for:- Form submissions
- Phone clicks
- Purchase completions
- Chat initiations
Advertising Platforms
Enable conversion tracking in:- Google Ads
- Facebook Ads Manager
- LinkedIn Campaign Manager
CRM Integration
Connect your marketing platforms to your CRM to track:- Lead sources
- Conversion timelines
- Customer values
Dashboard Tools
Build real-time dashboards that show:- Current month performance
- Trend comparisons
- Channel breakdowns
The Reporting Cadence
Different metrics need different review frequencies:
Daily: Ad spend, cost per lead, immediate campaign performance
Weekly: ROAS, website conversion rate, lead volume
Monthly: CAC, marketing ROI, channel comparisons
Quarterly: CLV trends, overall marketing efficiency
Taking Action on Metrics
Metrics only matter if they drive decisions:
High CAC: Investigate channel efficiency. Are some channels unprofitable?
Low CLV: Consider retention strategies. Can you increase repeat purchases?
Poor ROAS: Review ad targeting, creative, and landing pages.
High CPL: Examine audience targeting and ad messaging.
Low conversion rates: Audit sales process and website experience.
Numbers without action are just numbers.
Need help building a proper marketing metrics system? Our AI solutions team creates real-time dashboards that track the metrics that matter. Contact us to discuss your needs.
Related services: AI consulting in Perth for custom workflows, and hands-on AI training in Perth for your team.
Paul Saunders
Founder of Smash It Marketing — a boutique, AI-first agency pairing 18 years of Google Ads with an AI-first service suite. Book a call.
