WordPress focused on Sales?

Must have 3 Retention metrics to monitor:

 

WHAT is Retention metrics?

Retention metrics measure how well your services keep your customers coming back over time. Think of it like a loyalty test - how many people visit your blog, promotions, updates. It's an important way to understand customer satisfaction and identify areas for improvement.

Retention metrics are a critical component of your sales analytics, offering insights into customer engagement and loyalty. By monitoring below metrics you will understand your customers behaviour. When you identify patterns, you can make data-driven decisions to optimise your services and avoid customer attrition.

 

WHY monitor Retention metrics?

Monitoring Retention metrics is important to understand what is working and what is not with your services, mostly from ROI perspective. By monitoring customer retention you identify what needs improvement or detect problems. These changes will keep your customers engaged and happy, and generates more positive feedback with increased revenue.

Monitoring Retention metrics is crucial for optimising your customer lifecycle. This allows you to identify bottlenecks, friction points, and opportunities for growth. With recurrent monitoring of your retention metrics, you refine your services business plan, you allocate resources more effectively. Vital for making data-driven decisions to drive long-term revenue growth, reduce customer acquisition costs, and improve overall business performance.

 

Advantages of reporting Retention metrics:

Recurrent monitoring and reporting Retention metrics you notice trends and patterns in customer behaviour, identify areas for improvement, and make data-driven decisions to increase customer engagement and loyalty. This helps you prioritise business strategy, allocate resources more effectively, and ultimately drive business growth.

Regular monitoring and reporting of Retention metrics enables optimisation of your customer experience, drive revenue growth, and increase customer lifetime value. When you refine your business plan constantly, you identify opportunities for growth, and detect early warning signs of declining customer engagement, ultimately leading to increased operational efficiency and improved bottom-line performance.

 

Retention metrics PRO Tips:

1st: Focus on monitoring the right metrics for your business, like as daily/weekly/monthly active customers (or seasonal comparisons). Define clear goals for improving retention based on these time-frames.

2nd: Always segment your customers to identify trends and patterns from different groups.

3rd: Use retention metrics to inform business strategy and prioritise promotions that will drive customer engagement.

4th: With a freemium model, you should monitor retention separately for free and paid customers.

5th: Use control groups and A/B testing to validate the impact of specific changes on retention. Never forget to consider the context of external factors (seasonality, market trends), when auditing your retention trends.

When focusing on sales with your WordPress website, by monitoring these Retention metrics, they help you understand the effectiveness of your sales strategy, identify opportunities to improve retention, and optimise your approach to drive revenue and growth.

#1 - Lead Conversion Rate

Lead Conversion Rate for a WordPress website focused on Sales, measures the percentage of leads that your convert into sales or customers.

Why monitor Lead Conversion Rate? Monitoring Lead Conversion Rate is important because it shows the effectiveness of your sales strategy and the quality of your leads.

How to monitor Lead Conversion Rate? Your Lead Conversion Rate can be monitored with any analytics solution, like Matomo. Simply, divide the number of converted leads with the total number of leads. Then multiply by 100, to get your percentage.

How to improve Lead Conversion Rate? Improve Lead Conversion Rate focus on optimising your sales funnel. Improve lead nurturing. Provide personalised support to increase conversion rates.

#2 - Sales Cycle Length

Sales Cycle Length for a WordPress website focused on Sales, measures the average time you take to close your deals.

Why monitor Sales Cycle Length? Monitoring Sales Cycle Length is an important indicator of the efficiency of your sales process and the effectiveness of your sales strategy.

How to calculate Sales Cycle Length? Your Sales Cycle Length can be monitored with any sales solution or CRM. Simply, calculate the average time from lead generation till deal closure.

How to improve Sales Cycle Length? To improve Sales Cycle Length, streamline your sales process. Provide clear, simple and tailored communication to your leads. Offer personalised support to reduce sales cycle length.

#3 - Customer Acquisition Cost (CAC) vs. Customer Lifetime Value (CLV)

CAC vs. CLV for a WordPress website focused on Sales, measures the cost of acquiring a customer compared to the revenue generated by that customer over their lifetime.

Why monitor CAC vs. CLV? Monitoring your CAC vs. CLV is important because it indicates the profitability of your sales strategy and the effectiveness of your customer retention efforts.

How to measure your CAC vs. CLV? Your CAC vs. CLV can be monitored with sales solution or CRM. Simply, calculate your Customer Acquisition Cost (CAC) by dividing the total sales and marketing expenses with the number of new customers acquired. Then calculate your Customer Lifetime Value (CLV) by multiplying the average order value with the average number of repeat purchases. Compare the two results.

How to improve CAC vs. CLV? To lower Customer Acquisition Cost (CAC), focus on optimising your sales and marketing strategies. Improve customer retention by offering personalised support and experiences. Increase Customer Lifetime Value (CLV) by offering loyalty programs and upsell opportunities or bundle deals.