Growth Metrics: Know What to Track

Evaluating the data you collect with specialized tools is all a part of growth analytics. Businesses can grow in various ways through their revenue, customer base, and conversion rate. It’s essential to understand the information coming in about your users and your company as a whole to measure your own success. 

Join us for an exploration of various growth metrics and how to analyze your company’s progress with them.

What Are Growth Metrics?

Growth metrics are the key measurements of your business. Like other metrics, they’re made of objective numerical data, but growth metrics are specifically used in analytics to monitor your business’ growth over time. They’re used to calculate growth KPIs which look at how your company measures up to your business goals.

Your company’s growth in the past should help you make realistic predictions about future growth and give you an idea of what looks healthy for you. 

Why Are Growth Metrics Important?

Consistently measuring your company’s growth is an excellent way to prevent any hiccups with your bottom line. Knowing that you’re bringing in profit is fine, but predicting trends in your customer base by monitoring client behavior will help you stay ahead of your competitors. Analyzing growth metrics allows you to understand better what the future holds for your company. 

With the information you collect, your teams can make data-driven decisions to improve the quality of your offerings, market to the right audiences, increase customer satisfaction, and increase customer retention. 

Track Revenue Growth

Monitoring revenue increases or decreases for specific products and services allows you to see which areas of your business bring in the most money. If a product or service costs more than you see in returns, you can change or eliminate it and focus on the areas that positively impact your bottom line. 

Know Which Channels Have Growth Potential

Not only do growth metrics shed light on successful products and services, but they also highlight where and to whom you should be advertising. There’s nothing better for a growing business than to learn that they have a largely untapped market. 

By monitoring your customers’ details with tools like Kissmetrics’ person profiles, you can draw insights about their demographics and form new marketing strategies to continue your company’s growth.

Find Weak Links

Finding areas of your business that stop growth is just as important as exploring the places where growth can flourish. If you notice that you’re getting poor reviews noting that your staff can’t keep up with service requests for your products, that’s an indication that your customer service department is hindering your growth.

They may be the reason you don’t have more returning customers or why you aren’t attracting as many new customers as you’d hoped. This provides an actionable goal: hire more team members and thus reduce the weak link. 

Determine Your Business’s Health

A growing business is a healthy business. Growth metrics help you analyze whether or not your business is growing and by how much over a specified timeframe. If your company is growing at a slower rate than your competitors, that’s likely a sign that you need to be doing something differently. 

Stagnant or declining businesses are usually a sign that trouble is just around the corner, so you must stay on top of growth metrics to learn about problems as soon as they arise. 

Measure ROI

Growth metrics measure ROI and can differentiate between campaigns. Kissmetrics offers the ability to track campaigns by issuing multiple URLs for social media posts and drip email campaigns. By measuring your ROI, you can see which avenues lead to company growth so that you can pursue them and not waste your time in other marketing efforts. 

How Do I Know Which Growth Metrics to Track?

Determining the right growth metrics depends on your industry and business model. For example, e-commerce companies and SaaS companies will likely track somewhat different metrics. The number of subscriptions is a metric that only applies to businesses with a subscription model. 

The best growth metrics are the ones that contribute clear and relevant information that pertains to your business goals. Once you have created your KPIs and know how you measure your business’s success, you’ll be able to find the metrics that give you the information you need. 

What Are the Most Important Metrics for Product Performance?

Your growth analytics, or growth KPIs, depend on your business goals and what you want to achieve. Choosing those KPIs may not look the same for every company, but everyone should be watching a few essential KPIs. 

Sales Revenue

Sales revenue may be the most basic metric of all, but undoubtedly one of the most important. Your sales revenue ought to increase with each successive year. However, many external factors can affect your revenue. 

If your sales revenue isn’t growing according to your expectations, then you may need to realign the company with your business goals. Tracking your revenue from year to year can help you create realistic goals for the future or see if there is a serious problem within your business that needs assistance. 

Customer Acquisition Costs

Customer acquisition costs measure how much you need to spend on a single new customer to get them to convert to your brand. Knowing how much it costs to generate a lead is essential when calculating profits or customer lifetime value. Once you know how much a lead costs, you’ll need to factor in the conversion rate.

After all, you’ll likely need multiple leads to generate a single new customer. That customer may increase your revenue, but they’ll need to improve it enough to outweigh what you paid to attract them in the first place. 

Customer Churn

Customer churn shows the percentage of clients who stop doing business with you. This may be unsubscribing to your service or not purchasing any more of your products. Though customer churn can happen for various reasons, a high churn rate often indicates that something is wrong with your products or services.

Customer Engagement

Understanding how your customers use your products or services is crucial when determining which features you should focus on for future releases. Suppose customers all want to use one specific feature on your website. In that case, that is a signal that your company should explore potential growth within that feature by expanding its scope or improving its performance. 

Similarly, measuring the number of active users is an essential growth metric. Ideally, your number of active users should increase as your brand awareness grows, so if it stays steady, that’s a sign that something isn’t working properly.

Customer Retention

Customer acquisition costs are often decreased as companies perfect their marketing techniques, but they’re still expensive. Retaining existing customers is always cheaper than attracting new ones. 

Measuring the percentage of your customers who come back for more can provide valuable insight into customer satisfaction with your products or services. Customers with positive interactions with your products are more likely to buy future releases or updates. 


Upselling customers is one of the best ways to improve your sales revenue and reduce customer acquisition costs. When each customer, on average, is spending more on your products or services, you can keep a more significant cut of your revenue. 

Incentivizing your clients to purchase additional products through a bundle or promotional offer or persuading customers to buy a more expensive version of their desired service is something every sales team member should aim for. 

How Do I Track Growth Metrics?

Kissmetrics allows you to track important metrics for your business and generate meaningful reports from the collected data. Our reports are full of insights into how your company is growing and what is stopping you from reaching your goals. 

Before you can get to the insightful reporting, however, there are a few steps you must take:

  • Designate which aspects of your company you want to monitor – when you know what type of information you need, you’ll have a better idea about which metrics to track.
  • Decide on how often you want to report on your metrics.
  • Choose appropriate parameters for data gathering.
  • Set up your analytics software and get tracking.


A solid understanding of growth metrics is necessary to monitor how your business is doing both now and in the future. It mighty not be as good as a crystal ball, but if you know where you have the potential for growth and what to expect in your growing company, you’ll be able to evaluate the success of your strategies and begin new initiatives with confidence. 

Learn more about growth metrics with Kissmetrics’ comprehensive reporting tools. 



  1. The 7 SaaS Growth Metrics That Really Matter |
  2. Growth Metrics Definition |
  3. Business Performance Metrics Tracking Growth |

What is Product Analytics? Definition & Overview

As a member of the product team, a considerable weight lies on your shoulders. Your task is to develop what your company is selling, marketing, and relying on to give them a competitive advantage and generate revenue. 

If that wasn’t stressful enough, you’re also responsible for driving adoption and usage, and customer interviews are only as good as the questions asked. 

Making the right decisions on what to build and how to build it requires the right data. With the correct data at your fingertips, you can make smarter decisions, influence stakeholders, and enhance your team’s credibility within the company. 

What is Product Analytics, and Why Is It Important?

The term product analytics refers to capturing and analyzing quantitative data through embedded tools that record how customers interact with a product. 

Product analytics is vital for many reasons. As you know better than anyone, creating a product is a complex process — hundreds of decisions go into building it, and sometimes it can be difficult to tell if what you’re doing is leading you to the result you want.

Product analytics helps you:

  • Gain a deeper understanding of your customers.
  • Gain insights that are difficult to get from qualitative data, such as surveys, customer feedback, etc.
  • Set goals when adding new features. 
  • Gauge your customer experience.

While thousands of successful products were developed over the years with intuition and experience, today, data science and analytics provide us a more innovative and accurate path to decision-making. 

You can get timely information on how well you’re meeting user needs. You can measure individual features’ success and base product decisions on metrics that support your larger business goals. When used correctly, analytics can transform your ability to develop ideas and design great user experiences.

Data Points and Insight You Can Pull From Product Analytics

Product analytics allows you to address crucial questions like:

  • Who is using your product?
  • How much usage do certain product features get?
  • Which of your marketing efforts are driving the best users?
  • How are customers using the product?
  • What are the characteristics of your most engaged customers?
  • Where are your users getting stuck in your onboarding funnel?
  • How do you diagnose issues, reduce churn and personalize interaction for users?

Product analytics shows businesses what their users do — not just what they say they do. These are known as revealed behaviors, and they are highly telling. Customers aren’t very adept at predicting or assessing their behavior (consider any given New Year’s Resolution). Having analytics allows product teams to dive deeper than human-error-prone surveys and questionable user interviews. High-quality data and insights lead to more profitable decisions — plain and simple. 

How To Use Product Analytics To Develop Sales and Marketing Strategies

Data can help inform the strategies employed by every team and get everyone pulling in the same direction. Because there are facts (i.e. data points) that tell you which direction that should be. But the data is only as valuable as the insight drawn from it. So training your sales and marketing teams on how to use the product analytics tool so they can read the data it produces will help drive synchronicity within the company. It will also reduce their dependence on the engineering and product teams.

Product analytics platforms perform two core functions that help companies to answer essential questions about their users:

  • Tracking data: Capturing events, actions, and visits
  • Analyzing data: Visualizing data through reports and dashboards

Here are some examples of how product analytics helps align sales and marketing strategies with product objectives: 

  • Acquisition: Product analytics can tell you where your customer comes from — which channels they use primarily, which users are the best prospects, and the optimal costs for acquiring each user.
  • Activation: Each experience a user has with your product on the journey to becoming a paying customer is known as a micro-conversion. The point at which users fully connect with your offering and realize its value is called the moment they decide to purchase. Product analytics can help you optimize these steps.
  • Retention: This is perhaps the most crucial metric to understand: are customers staying or leaving? On a basic level, product analytics answers this question. But it also tells you the behaviors indicative of a user staying. Which features do they use? How long did it take them to realize the value of your product? Product analytics will show you your stickiest features as well as which cause users issues. So you can prioritize what to build and fix.
  • Referral: The only thing better than a satisfied customer is a whole bunch of them. Product analytics enables you to create a tracking plan to measure your customer loyalty through their actions.
  • Revenue: Ultimately, it’s all about how you make money with your product. Product analytics can tell you who your most valuable customers are, the features they use and the products they bu. It will also tell you at a very basic level, how much money you’re making.

The more data teams get back from product analytics, the better the product iterations will be and the more aligned the marketing campaigns and sales efforts will be to those product iterations. 

Most Common Analytics Reports and How They Can Help

A product analytics platform works by tracking the actions users take within your product:logins, features used, engagement, and other activities involved in navigating a digital product. 

Here are some of the most common analytics reports that will help you analyze your data:

Cohort Analysis

A Cohort Analysis allows you to segment your customers into groups (i.e. cohorts) based on demographic information, acquisition channel, job title, industry, or any other way you want to group your customers. This report will tell how well each of these cohorts does within your product and can help sales and marketing teams assess their target audiences. 

Behavioral Segmentation

Behavioral Segmentation is another standard analytics report that offers much greater refinement than demographic segmentation by letting you sort your users according to the actions they take within your product. You not only see who your very best customers are — you know what they do. You also see the actions taken by power users and your customers who churne

This report helps inform the product team on what they should build and fix, and to prioritize that never-ending list.

Event-Based Sequences

Event-Based Sequences provides you with endless flexibility in taking advantage of all the data you have gathered through auto-capture. Different teams can assign multiple labels to the same auto-captured interactions — even retroactively — without modifying that specific data. 

These labels allow you to put events into context to answer questions and prove or disprove multiple hypotheses without going back to the source and rewriting the code. Simply put, your dataset stays clean yet accessible. 

How Kissmetrics Helps Behavioral Product Analysis

Kissmetrics is a person-based analytics tool that will help you to identify, understand, and improve the metrics that drive your SaaS product. We make it simple to get the information you need to make better product decisions. 

Other analytic platforms emphasize page views or isolated events, meaning they will tell you how many times a page was accessed or how many times a specific event was performed. But that does not connect the activity to your users or how they use your product.

The Bottom Line

Product analytics expose the raw reality of how customers use a product — or even a particular feature. Tapping into these metrics could be the key to your product’s growth and, ultimately, a happier customer.



E-commerce Market Share, Growth & Trends Report, 2020-2027.

What Is Intuition, And How Do We Use It?

Why we make (and break) New Year’s resolutions, and 4 tips to help you achieve your goals | Norwalk.

What is a Good Bounce Rate For Your Website?

Understanding how bounce rate works and what you should aim for on your website can be challenging. There are several factors that can affect your bounce rate, such as where the visitor is coming from, the type of page they land on, and your website’s goal. 

In this article, we delve into what a bounce rate is, why it matters, and how to improve yours. 

What is Bounce Rate and Why Does It Matter?

A bounce rate refers to the percentage of visitors who visit a single page of your website before navigating away. These visitors do not visit any other pages on your website and typically don’t interact with anything on the page. 

Essentially, your bounce rate measures how many people take one look at your content and exit.

What is a Good Bounce Rate?

Depending on your industry and what you offer on your website, your ideal bounce rate may vary. For example, if your website is informational, you can expect a higher bounce rate since people will visit, find the information they were looking for, and leave. This is typically true for websites geared towards students or research.

The type of page also impacts bounce rate. Product description pages and home pages tend to have a lower bounce rate than blog entries or informational pages. 

What is the Average Bounce Rate?

The average bounce rate is between 26-70%, depending on the industry and purpose of the website. Given the wide range, you’ll want to look up the average bounce rate for your industry and site type to get a read on how your site is doing..

How To Check Your Bounce Rate 

Some analytics tools offer the ability to monitor your bounce rate, although Kissmetrics does not. Typically, you would find the bounce rate as a metric available to track and could click on the report to see your bounce rate through a specified timeframe.

We don’t offer tools like bounce rate monitoring because our funnel report provides more actionable information about who is flowing through your sales funnel and how many steps they get through before exiting your website. The funnel report gives you inverse information from a bounce rate by showing the number of people who complete a sequence of designated events. 

Why is Your Bounce Rate High? 

There are plenty of reasons why your bounce rate might be higher than the average. However, before you start panicking at an exceptionally high bounce rate, you should consider if any of the following apply to your website:

  • Traffic from social media platforms – if you place ads on social media platforms, plenty of casual browsers might click on your ad only to find that they weren’t particularly interested in your product, and they bounce away.
  • Publishing informational blog entries – if you’ve written great content, people might be looking for your blog. While that’s great, those people likely just want to consume that one blog’s content and have no interest in exploring the rest of your website.
  • People are browsing on their phones – regardless of your website’s formatting, people just have a shorter attention span when browsing the internet on their phones. This could be because they’re browsing in public or at work and need to be able to quickly see everything and then finish what they’re doing. Whatever the reason, bounce rates are often higher for mobile viewers. 

How to Analyze and Report Bounce Rates 

While some analytics tools automatically report bounce rates, they are considered a vanity metric and don’t usually provide valuable insight as to why your visitors are bouncing. Therefore, it is difficult to analyze bounce rates and draw any conclusions about what to improve. 

  • Are visitors leaving because they aren’t impressed with your website? 
  • Have they found the necessary information and are ready to move on? 
  • Is your website useful in their search? 
  • Do they feel that your advertisement misinformed them about your products and they don’t want to buy them? 
  • Does your product fail to resolve their issue for them?

None of these questions can be answered based solely on your bounce rate. Instead, you can monitor bounce rates through more useful reports that show how people interact with your website. 

How to Improve Bounce Rate 

Your website may have a high bounce rate for many reasons, some of which have nothing to do with your content or your product. However, we’ve compiled some of the aspects that you have control over within your website and what you can do to entice visitors to take off their coats and stay awhile. 

Improve Your Page Load Time

A slow load is one of the most common causes of a high bounce rate and low time on page. People expect pages to load in under a second, and the longer they wait for your content to load, the more likely they are to navigate away without ever seeing it. While some users can try refreshing the page, you can’t expect everybody to have high-speed internet, so you’ll have to build your pages for the lowest common denominator.

Limit the use of complicated graphics, fonts, or formatting on your website to reduce load time. Moving photos, embedded videos, automatically triggered music, and other fancy items will also slow down the loading of your pages. A clean, streamlined appearance never hurts, particularly if it makes the difference between people remaining to see what your website looks like and leaving in dissatisfaction.

Improve Your Page Design

We’ve all seen web pages with large amounts of pictures, fancy fonts, and blaring colors. They’re entirely distracting and often serve no purpose other than to distract viewers. However, if your visitors can’t immediately determine whether this website will meet their needs, they’re highly likely to just exit from it immediately.

Your website doesn’t need to be spartan, but it must have clearly defined links to your home page, product description pages, and other ways of navigating. Many websites with lots of pages employ a search bar in the upper right-hand corner.

Check Bounce Rate vs. Time On Site

Time on site, also known as session time, refers to the total amount of time a single visitor spends on your website. This encompasses any time they spend on any of your pages, from the time that they land on your first page to when they leave. Time on site alone only provides a vague picture of what’s going on – what if someone visits and leaves the tab open in the background? 

On the other hand, bounce rate measures the percentage of new visitors who see a single web page and navigate away or close the tab. 

Keyword Relevance

You might have the best content in the world, but it won’t matter if the right people can’t find it. Writing an in-depth article about when to use a skin care cream won’t be of any use to people looking for information about suntan lotion. If you don’t use relevant keywords, your article may come up for people who aren’t looking for skin care cream or not come up when people search variations on the terms. 

Optimize for Mobile

Nowadays, many people do their web surfing from their phones. If your website has lots of dense paragraphs, it can look like an unappealing wall of text on mobile. Instead, try to use as many bullet points, pictures, or breaks in paragraphs as possible. Keep each section to four lines maximum to facilitate readability.

Make Navigation Easy

Navigation via internal links is critical and shouldn’t be underestimated. It’s easy to forget to link to that product your blog just mentioned or link to a page with detailed instructions on installing your application. Still, without those links, your visitors won’t be able to continue down your conversion funnel. 

Keep Important Elements Above the Fold

For visitors on laptops, you want all of the crucial elements of a page to be located near the top or middle, anywhere that is above the fold of the laptop, aka where they have to scroll down. You should never forget that visitors can quickly leave the page. There are thousands of search results that likely deliver similar products or information, so you need to capture and keep their attention from the get-go.


Bounce rate is one of the vanity metrics that some product analytics tools will provide, although Kissmetrics does not. It depicts the percentage of visitors who only see one of your website’s pages before exiting the session. However, since the bounce rate rarely provides actionable information, we offer other metrics like path reports and funnel reports, so you can see what your customers are doing online before leaving.

Keep your bounce rate down by leveraging Kissmetrics’ tools today. 



13 Reasons Your Website Can Have a High Bounce Rate | Search Engine Journal

What Is Bounce Rate and What Is a Good Rate? | SEMRush

High Bounce Rate? Here are the Reasons & What You Should Do | Crazy Egg

What is Source Tracking and Why is it Important?

Sadly, asking your users, “How did you find my business?” won’t get the answers you need. For the majority of companies, you never end up speaking with visitors and users, and even if you did, the chances are high that they would say, “Uh, I don’t know. Maybe Google?” 

Some websites have surveys for visitors to ask how they found them, but the surveys are often optional and rarely provide coherent information.

So, how can you discover which avenues of marketing are working? In this post, we break it all down by addressing how source tracking works, what it is, and how it can benefit your company. 

What is Source Tracking?

As the name implies, source tracking is a way to plot the course that led your website’s users to your landing page. Did they find one of your articles in a Google search? Did they see your ad on Twitter and click-through? Were they dormant users who signed up for the email list and were suddenly tempted by your irresistible discount offer in an email campaign?

What’s the Difference Between Source Tracking and Visitor Tracking?

Keep in mind; source tracking is solely focused on how a visitor gets to your website. Once they have arrived, any further monitoring of their interactions and behavior falls under the visitor tracking category.

Visitor tracking is more comprehensive than source tracking. While source tracking only looks at where your visitors are coming from, i.e., the source that brought them to your website’s landing  or home page, visitor tracking follows their journey through your website. 

Full-fledged visitor tracking might note which other pages visitors navigate to after leaving your landing page, how long they spend on each page, if they eventually commit to a purchase, and provide other insights on individual users throughout their session.

What are the Types of Source Tracking?

There are two main types of source tracking: onsite and offsite. As we explain below, you’ll likely be primarily concerned with offsite tracking when you want to monitor ad campaigns and other marketing strategies. 

However, onsite source tracking can provide valuable insight into your content creation and your calls to action on each page. There is also a third type of source tracking, so we’ll talk a bit about that, as well. 


Onsite sources are internal links that visitors can click. For example, these sources might send the visitor from an article to another blog entry about related content or mention a specific product and include a link leading directly to that product’s description page. 

Understanding which pages funnel visitors to priority pages, like registering for an account with the website or purchasing items, is fundamental to building a website that is easy to navigate and provides users with what they’re looking for. 

Onsite source tracking may also fall into the category of visitor tracking, as we note in the section above, since you are following the visitor from one page to another while remaining on your website. 

Off Site

Off-site source tracking is your central funnel of information. This measures how people are getting to your website in the first place. Once they start doing other things and clicking through various pages within the website, off-site source tracking no longer applies. 

However, when it comes to A/B testing two different email campaigns, this is the type of source tracking you’ll utilize. 


Outbound tracking is something of a mystery to many companies. So why would you want to track the pages that cause people to leave your website? The answer is surprisingly simple: the key to enticing visitors to stay is in those particular pages. 

When potential users leave your website, they have decided that your website no longer adds value to their current session. This might be a result of something more interesting catching their attention, your page not answering their questions, or feelings of frustration at a complex UI/UX.

Whatever the reason, tracking the pages that people see just before they navigate away from your website provides valuable information about the type of content that may need to change. 

Why is Source Tracking Important?

Simply put, you need to know what works and what doesn’t. Email campaigns, for example, cost time and money to put together successfully. If you track the link provided in the email and see that it is generating very few visits over a given period, you’ll probably conclude that your user base is not responding well to your campaign. From there, you and your marketing team can strategize different ways to reach users.

Is the email going into the spam folder? Is the wording not appealing to your audience? Should you be offering a better promotion to entice website visitors? Or is email not the right format for your users at all? These kinds of essential questions can only be raised and answered if you’re tracking where website visitors come from. 

When you pair source tracking with A/B testing, you can see precisely what type of message works in each medium and what doesn’t draw as much attention, so you can spend your money wisely. 

How Does Source Tracking Work?

Source tracking works relatively simply. By using a specialized code snippet added to the end of a URL, your company can generate parameters for tracking those URLs. Though they will all take the visitor to the same landing page, the URLs will vary depending on the parameters that you set in the tool.

Standard parameters include your source, your medium, the content, and the name of your campaign. This makes it easy to compare email campaigns versus Facebook ads and multiple campaigns in the same medium by using an A/B test report

Later, you can search the URLs used during a given timeframe and see which of your campaigns successfully attract visitors to the website and which ones you need to take a second look at before continuing. 

How Do You Set Up Source Tracking?

To set up source tracking, you’ll need to generate your URLs for various types of marketing. This may mean generating distinctive URLs for multiple email campaigns, Facebook ads, Twitter ads, or any other form of communication between you and the potential visitor.

Once these URLs have been generated, Kissmetrics will record which of them are used by visitors to your landing page. Keep in mind that the visitor will not see any of this behind-the-scenes tracking despite the distinctive URLs. Instead, they’ll be provided with a link or button click through to the same landing page.

All of your visitors will see the same thing; however, you’ll see how people arrive on your landing page in the reports. That data will be compiled in your analytics tool to analyze and incorporate into your decisions about which marketing campaigns to use and the right platforms to reach your audience. 

How Do I Use Source Tracking Information in My Business?

Source tracking provides valuable information about which types of sources provide the most return on investment for your company. This type of information can shape your marketing strategies, budgeting, content creation, internal marketing, and customer journey. It can even affect product decisions.

Both off-site and onsite tracking provides data about the calls-to-action and the type of content that your viewers want to see. All of that data can add up to a more extensive user profile and help you create a viable sales funnel for visitors, whatever stage of the buyer’s journey they’re in. 

Source tracking can also be beneficial if you want to advertise for business partners and affiliates by creating links on your website that lead to your partners. You can monitor those outbound links to see how effectively you marketed your partners and how many of your users reached out to your affiliates based on your recommendation. 


By tracking where your visitors come from, whether your landing page provoked them into visiting other areas of your website, and then knowing where they ended their sessions, you can get a complete picture of your visitors’ experiences and interactions with your company. Then, when you understand what the user is seeing, you can tailor it for their needs and desires. 

Visit our website to learn more about how Kissmetrics can help you collect and make the most of your user data.



Source Tracking vs. Visitor Tracking: What’s the Difference? |

Track External Link Clicks on Your Website |

How URL Tracking Works and Why It’s Important |

What Is Marketing Analytics? Definition and Examples

Marketing in the digital age is moving quickly. Companies from all industries are taking advantage of this boom by leveraging on what is perhaps the most precious resource of modern commerce—data. 

Marketing analytics is the way companies use this data to their advantage.

What Is the Definition of Marketing Analytics?

Marketing analytics is when data is collected from marketing platforms to create complex models to visualize and understand user behavior. Businesses that use marketing analytics can ensure the money they allocate for advertising gets the highest return on investment (ROI) and that all of their marketing efforts remain lean. 

How Is Marketing Analytics Different from Digital Marketing?

Digital marketing is the overall process of using digital platforms to advertise a product, service, or company. Digital marketers use marketing analytics to make digital marketing efforts more efficient and more profitable.

Why Is Marketing Analytics Important?

Executives from the biggest companies in the world all agree that data is fueling the future of marketing. With proper insight and implementation of marketing analytics, you no longer have to rely on expensive trial and error with your advertising campaigns because the data you retrieve will help you continuously optimize your campaigns for higher returns. 

That means lower marketing costs, more valuable customers and more feasible and effective growth and scaling plans. 

What Are the Benefits of Marketing Analytics?

For a more concrete idea of how powerful marketing analytics is, here are a few of the benefits of implementing marketing analysis into an organization’s promotional strategy. 

Get to Know Your Audience

With marketing analytics, you can target the audience to which you intend to advertise through a process called behavioral segmentation

This means that you will understand what your customer’s purchase patterns are, what products they are most likely to buy, and what types of ads they click on the most. This is beneficial to your business. 

Not only will you be able to personalize your company’s advertising campaigns to suit specific target audiences, but you can use this information to improve your efforts continuously.

Identify Trends

You can use marketing analytics to identify various trends within your industry, especially in e-commerce. The volume of consumers who have taken your shopping efforts online has grown exponentially so the scope of e-commerce is continuously shifting. But there are clear patterns that unveil themselves by analyzing your marketing data. 

For example, one trend that can be identified is whether buyers tend to go to specialized websites during the holidays or more prominent and more general platforms like Amazon or eBay. 

Forecast Future Results

By looking at the marketing analytics patterns of previous marketing campaigns, you can more easily predict the outcomes of your future marketing campaigns. 

Measure KPIs

Marketing analytics is a way to determine whether or not a company achieves its Key Performance Indicators (KPIs).

When you run marketing campaigns, for example, one of the things you pay attention to is your conversion rate. A conversion rate is a desired action taken by the customer or user that is influenced by marketing efforts. 

With marketing analytics, you can tell if your marketing efforts are working because the associated conversion rate will either rise or fall compared to the previous month.

Optimize Campaigns

One word that can be used to describe the goals of marketing analytics would be ‘refinement.’ In the past, companies relied on more traditional methods to make sure their marketing efforts were working. 

Now, you do not need to resort to those methods as frequently because you have a wealth of data to use to optimize your campaigns daily.

How Can I Make Sure My Marketing Analytics Effort Is a Success?

As powerful as marketing analytics are, a company needs to actively make sure that its processes are well-defined and it uses best practices to make sure its analytics are effective. Here are some of those best practices.

Use Multiple Processes 

You should rely on multiple processes like conversion rate optimization and product positioning

Product positioning  is what consumers think about a particular brand. By using the data obtained through marketing analytics, you can make sure that your consumers know the value of your products and what makes your products stand out from your competitors. 

Product positioning  is the best way to highlight a unique selling point. 

Optimize Workflows

You can use marketing analytics not only to optimize advertising campaigns but to optimize workflows as well. This means that your company’s efforts will be a lot leaner, and your company will have more apparent objectives and a more well-defined process to achieve these objectives. 

An example of this is social media content creation. With marketing analytics, companies can eliminate the guesswork of which pieces of content are valued by their target audience, which ones get the most engagement, and which draw the most traffic to the company’s landing pages. 

You can then focus your efforts on the pieces of content most likely to be successful as well as creating more content that your audience loves.

Make Changes Based on Your Findings

You should use the information you obtain to create better success and to mitigate future failures. 

An example of this would be an e-commerce fashion brand adjusting to the information obtained for a particular clothing color during winter. 

After analyzing their data, the retailer found that specific colors were not popular among its buyers. Based on this information, it didn’t include this clothing color in  the following winter line to prevent low conversions.

Predict Customer Lifetime Value

Another important metric that a company should obtain about its customers is something called Customer Lifetime Value. Customer Lifetime Value is the amount of money that a specific customer will likely spend at their business over their entire relationship. 

Predicting Customer Lifetime Value can provide you with an indication of how your efforts influence your relationship with your customers. With marketing analytics, you’ll receive a clearer picture of your Customer Lifetime Values and get better ideas on improving these values. 

A very powerful aspect of Marketing Analytics is that you have the tools to predict how specific metrics will fare for the next few weeks and well into the future.


Data is now one of the most influential factors in marketing. 

Marketing analytics is a way of measuring your company’s marketing efforts. Greater insight leads to better profits and a more robust brand image. The information is readily available—marketing analytics is simply a way to give this information structure to visualize what needs to be done and take the appropriate action.

If you represent your organization and want to know how you can look deeper into your marketing analytics — Kissmetrics is a great way to start.



A Guide to Marketing Analytics. Marketing teams must rely on analytics | by Abizer Jafferjee (Waterfront Analytics) | Jul, 2020

The Need for Marketing Analysis. Exactly how analytics can transform… | by Muhannad Haj Ali | The Startup

How Data Is Fueling The Future Of Marketing | Forbes

Which Product Metrics & KPIs Matter?

Product metrics and KPIs are great tools for companies to track success in the key areas that matter to their business. There are many different examples of KPIs and product metrics and, when used properly, they can provide great insight into your company’s health. 

What is a Product Metric?

A product metric is a measurable data point on the performance of a product. It should be quantifiable, meaning it can be measured as a numerical value or quantity, and it should capture how a user interacts with a product. Once analyzed, product metrics will tell you how beneficial those interactions were to the user and the company. Various teams in your company can use a good product metric to gain more insight into what’s successful about your product and what isn’t. 

What is a Key Performance Indicator (KPI)?

A key performance indicator, or KPI, is a progress measurement towards a goal or achievement. A KPI should be quantifiable and should have a clear endpoint that can be reached. 

By tracking objectives over time, a KPI can give you a good indication of your progress and how close you are to completing a goal.  A key performance indicator can be created for a specific product, department, or individual employee. 

Unlike product metrics, KPIs are not limited to products alone, as they are applied as a measure of progress in achieving a specific target. 

Are KPIs and Performance Metrics the Same Thing?

KPIs and performance metrics are similar in that they are quantitative and should show measured value over time. Both performance metrics and KPIs should give you a clear picture of progress in meeting the goals your organization has set. But while KPIs and performance metrics share some similarities, there are key differences between the two measures. 

KPIs measure the progress towards a goal or a checkpoint, a performance metric simply measures the performance of a metric over a period of time. Therefore, a performance metric could be considered part of a KPI, but a KPI would not be part of a performance metric. A good KPI could have multiple performance metrics to give you a more in-depth look at your progress towards the end goal. 

What are the Most Important KPIs and Product Metrics?

There are countless KPIs and product metrics that your company can collect, but which should you monitor? Some of the most important KPIs and product metrics are:

  • KPIs
    • Monthly recurring revenue (MRR)
    • Customer lifetime value (CLV)
    • Customer acquisition cost (CAC)
  • Metrics
    • Session duration
    • Bounce rate
    • Retention rate
    • Churn rate

Monthly Recurring Revenue

Monthly Recurring Revenue (MRR) is an important KPI, especially for businesses that rely heavily on subscription-based services. For example, when businesses want to measure reliable income that will come in on a regular schedule, they measure MRR. Consistency is key for this KPI because it measures a recurring expected income, not a one-time purchase. 

MRR allows for easier planning around future income. 

Customer Lifetime Value

When tracking the value a user brings to a company over the entire relationship of the user and business, that is considered Customer Lifetime Value (CLV)

Like MRR, CLV is measured over time. This KPI is important for companies looking to develop strategies to retain users and create increased loyalty to the company. 

Customer lifetime value is a crucial KPI for companies to improve relationships with their users. Understanding the potential loss a company could suffer by losing users prematurally to competitors makes it easier to justify investing resources in keeping users loyal to your company. 

Customer Acquisition Cost

Customer acquisition cost (CAC) calculates how much it costs you to convince a user to buy your product or service. CAC focuses on analyzing costs associated with marketing, advertising, and other tools used to bring users to your company to purchase your goods or services. 

While this is a fairly simple calculation, the CAC is important to calculate the true profit each user can bring your company. 

This is a key KPI for budgeting advertising campaigns and measuring how effective strategies are at attracting new users to your company. In addition, the CAC is a great KPI to compare against CLV. These KPIs can paint a clear picture of the actual profit that users bring to your company. 

Session Duration

Refer to the session duration metric if you’re interested in tracking how much time users spend interacting with your website. The session duration metric is a measurement of how long users actively engage with your website before a timeout. 

Once there is no activity from a user for a set length of time, the session will then timeout, and the measurement will stop. An important key to the session duration metric is that it records the time spent on your website, not just a single webpage. Therefore, going back and forth between web pages will all be totaled in the session duration metric. 

This is a useful metric for understanding how users interact with your website and if they are really spending the appropriate amount of time navigating your pages. 

Bounce Rate

Another simple metric that companies often track is bounce rate. For example, if someone were to visit only one page of your website and then leave without completing an event or navigating to another page on your site, that would be considered a bounce. 

What the bounce rate really tracks is how many people navigate to your website and then immediately leave. However, what bounce rate does not do is give you information that can help you determine why a user left. 

Depending on your website design, bounce rate may not be a bad thing. A single page site design, like some blogs or articles, may have a high bounce rate and still be successful. 

On the other hand, many ecommerce sites have a checkout process that goes through different pages so it would be difficult for them to be successful with a high bounce rate. . Bounce rate can be a helpful metric to track, but you’ll want to make sure you’re using this metric with other, more illustrative metrics to get a clear picture of what’s going on on your site and what you can do about it.

Retention Rate

Your user retention rate is a handy metric for understanding how you’re performing against the competition. A retention rate is how many of your users return to your business over a certain period of time. 

The parameters for retention rate vary based on your type of business and how you get users. If your business requires repeat user visits to create a good profit, then retention would need to be high. The time span over which you would want to measure retention would also vary based on the type of business and how users shop for your goods or services. 

Churn Rate

This metric is useful for subscription based products that rely on maintaining or growing their MRR. Churn rate is defined as the percentage of users that leave your business over a period of time. 

If you have a high churn rate, you have to attract a lot more new customers to maintain the same MRR. Which is costly and means it could be difficult to maintain profits. Measuring your churn rate and comparing it against new users is the best way to get a clear sense of your company’s growth. 

How Do I Know Which KPIs and Product Metrics to Measure?

Knowing which metrics and KPIs to track depends on your business type and your situation. If you have a subscription based product, MRR, churn and retention rates will be important. If your business is new, growing, and looking to track growth-related metrics and KPIs, tracking user acquisition cost could be helpful. If you have an ecommerce company you’ll want to track CLV. 

The important thing to keep in mind is that the best metrics and KPIs for your business provide the most useful information you need to help your organization maintain growth. 

How Do I Measure KPIs and Product Metrics?

To measure your KPIs and product metrics, you’ll need a behavioral analytics tool like Kissmetrics. You simply install the code in your product or on your site, choose the events (i.e. user actions or metrics) you want to track and then check in at regularly scheduled intervals to run your reports.  

How Can I Optimize My Product Performance?

Your product performance is key to your company’s success. The best way to optimize your product performance is to use a behavioral analytics tool like Kissmetrics to track user behavior within your product. Track both your power users and unhealthy accounts to which user actions are indicative of each category. Which features are most popular? Where do users get stuck? What are the most successful customer journeys? 

Use the information you gather to make decisions on what to change, how to change it, and when to change it (i.e. how to prioritize your resources). 


Product metrics and KPIs need to be tailored for your type of business and where you are in the growth process. They offer much needed detail and provide a path to action to help your company succeed. Make sure you choose the important metrics and KPIs and monitor them with the best product analytics tools for your company to help improve your product performance. 



What Does KPI Mean?: An Introduction for New Leaders |

Customer Lifetime Value: What is it and How to Calculate |

Bounce Rate Benchmarks: What’s a Good Bounce Rate, Anyway? |

User Analytics Overview

As the name implies, user analytics is the process of evaluating your user’s actions, so your company can provide services or make products that your customers enjoy. The insights offered by user analytics software can help you do that by showing you features of your product, service, or sales platform work well (i.e. users use them regularly) and which give users problems or go unused altogether. This will help you decide which bugs to fix and what to build next and to prioritize that list. .

Learn how user analytics work, what kinds of information it provides, and what to do with that data once you have it. 

What are User Analytics?

User analytics is the process of collecting and analyzing data on actions users take within a product. Using an analytics tool like Kissmetrics allows you to take this data and create a comprehensive user profile that can be combined with the information the user provides for a holistic view of the people and companies who use your product.

User analytics differ from self-reported surveys because there is no potential for deceit. You’re tracking what they actually do, not what they say they do.

How do You Perform User Analytics?

You start by installing a user analytics tool in your product and choosing the events (i.e. user actions) you want to track. The events you track should answer key questions that indicate your product’s success. 

For example, are they regularly logging in? Which features are they using? Which features seem to cause them problems?

Choose the Right Events for Your Business

In order to gain the insights that will allow you to pull the right levers to grow your business, you have to track events that are indicative of user success (or failure) within your product. If you don’t know what these are, create a hypothesis about which user actions are most important, then test it. You may change the events you track over time as you collect more data and gain greater insight.  

Break it into Sub-events

Once you have defined the events you’re interested in tracking, you need to break them down to understand user motivations and what the user needs to do to get there. 

For example, product managers can employ user analytics to monitor which features their power users seem to gravitate towards, and which features casual users seem to prefer. Inversely, user analytics can help product managers determine which features are not commonly used or understood by their user base; they can even determine which groups of users are the most likely to cancel their subscription or discontinue service.

Watch Users Conducting Events

As the name implies, this step requires your team to observe the process. They will have certain concepts in mind during their observation like:

  • The motivation behind each subevent.
  • Information required by the user to complete the subevent.
  • If the user can tell when they’ve achieved their results.
  • If the user needs specific tools not included on the website or app to complete the task.

Draw an Event Diagram

An event diagram is a flowchart where your team documents the entire user process from beginning to end. This should include all subevents and how the funnel connects and creates the ultimate event. 

Write the Story

The story documents user motivations or the “why”. Writing the story entails the team figuring out what motivated the customer to proceed through each subevent and how those motivations and emotions tie into the ultimate event.

Validate Your Findings

At this point, your team should run their event diagram past others who aren’t familiar with the process. The fresh set of eyes may find some subevents that should be separated and called out or ones that ought to be bundled together. 

Analyze Your Results

This is where the fun starts. Your company has collected in-depth information about an event or process, but sometimes customers don’t behave how you predicted. 

Where in the event did people do something unexpected? What could have caused that deviation?

How do I Evaluate My User Analytics Platform

The best user analytics platforms are the ones that store lots of data points about users to compile a comprehensive profile. However, platforms need to do more than just store data. They need to showcase said data in a way that makes it easy to see who your customers are, their retention rate, how well marketing performed in various places, and the actions taken by users in your product. 

To evaluate your user analytics platform, it is essential to take the following into account. 


Knowing which software is compatible with a proposed user analytics platform is crucial. Transferring data between different programs is time-consuming and costly. Having a platform that will efficiently work with the software your company already has in place, will save you a lot of energy and expense. 


Great user analytics platforms do the work for you and give that time back to your teams for other work. The best types of software make your team more productive by automating certain manual tasks that save your team time and energy. 


Another consideration is the current size of your company now, how many events you want to track, how many users will need access to the tool and your projections for the future. It can be a waste of resources to install a user analytics platform that only works for your current operations but may become obsolete as your business expands. 


Some user analytics tools are made for individuals or small team use instead of larger project teams. So think about who is using the tool and whether or not it’s the right fit.. Individual use software might have more tempting integrations or fancy features, but if it isn’t optimized for team use, it will probably end up being more trouble than it’s worth. 


Ideally, your user analytics platform is intuitive and doesn’t take a lot of training to use. You want your teams to begin using the information as soon as possible, so choosing a platform with a steep learning curve that requires hours of onboarding might not be the best way to go. 

Why are User Analytics Important for Your Business?

User analytics provide deeper insight into what your customers are doing, how they’re engaging with your product, and how making changes based on that information could affect your churn rate. You can also segment customers into cohorts and break down your user base into users, power users and unhealthy accounts (i.e. those who haven’t used the product in a while and are at risk of cancelling). 

This will allow you to target your marketing to attract more people likely to become power users, and it presents a customer service opportunity to save accounts that might otherwise churn. It also shows you which features are most popular with your power users so you can strategize how to direct other users to said popular features. And then hopefully turn “regular” or “unhealthy” users into power users.

Additionally, user analytics can reveal where in the funnel users are most likely to drop off and stop using your product. This could be especially good if you weren’t aware of your product’s weaknesses before. 

Understand User Behavior

Knowing why customers and users behave the way they do is the key to growing your business successfully. If users only engage with a handful of features and the rest don’t get much play, you can better prioritize your resources to supporting the more profitable segments of your business. 

Understand User Demographics

Grouping customers into cohorts based on demographics like age, gender, or location can be a handy way to identify your company’s target audience and do more to appeal to them. 

Alternatively, by identifying traits that make customers less likely to stick with your company, you might be able to take steps to broaden your product or service’s appeal. 

Increase Profitable Product Decisions

One of the most critical insights user analytics can glean is exactly what makes you money. Then you can choose to build more of that or make those profitable features even better. You’ll receive data about how customers respond to changes in your products or services which can inform your company about which decisions were the right ones. And make more of those in the future.

Empower Your Teams

Product managers and marketers may have plenty of experience on the job, but no one is infallible. With everything going on inside a supposedly simple application, it can be difficult to monitor where the problems are coming from and address customer concerns. With user analytics, you don’t have to worry that your teams only see what they want to see.

Interviews and surveys with users are unlikely to yield the best information because users may forget individual steps or only focus on saying what they think is expected of them. Instead, user analytics gives your teams relevant information about real user experiences that can shape and inform your company’s steps moving forward. 


User analytics works by connecting multiple data points on your users to form holistic profiles. These profiles give you insights about user cohorts and the processes that users undertake when interacting with your product. With a product analytics tool like Kissmetrics, you’re able to understand your user habits on a granular level.

By understanding actual user behavior and experience, your company can grow and expand in a way that customers will love.



What are User Analytics? | Pendo

User task analysis to better understand your customers | Mixpanel

User Analytics Overview | Mixpanel

Metrics vs. Analytics: Track the Right Data and Ask the Right Questions

Though the terms are often used interchangeably, metrics and analytics actually refer to two different things. One is a noun (i.e. a thing) and one is a verb (something you do with that thing). So when people don’t differentiate between the terms, conversations around data collection can get muddy. 

Get clear on what a metric is, what it means to analyze those metrics and how to do it all effectively so you move those ever important needles. 

What is the Difference Between Metrics and Analytics?

While both metrics and analytics refer to ways of interacting with collecting data, they don’t mean the same thing. In the simplest terms, metrics are the data you collect  and analytics are the insights you draw from your data. We’ll dive into the specifics below.


As we said above, your metrics are the data you collect. Anything that can be objectively measured in numeric form counts as a metric. Some examples of metrics include:

  • Your total revenue for a timeframe
  • Number of customers in a month
  • Average amount spent per customer
  • Number of visitors to your website

Your metrics are also used to define your KPIs and how you measure your business’s success. For example, your company could watch the customer acquisition cost metric and set a goal to reduce those costs to better fit your needs. Your KPI would measure how successful your initiatives have been at reducing your CAC.

Metrics differ based on industry and it’s crucial to know which ones work best for companies who have been successful in your industry. 


Analytics is the process for analyzing your data. Analytics has nothing to do with actually gathering the data, it’s the second step where the data is given meaning. Then, based on your analysis you can make realistic goals and decisions.

Why Are Metrics and Analytics Important?

As noted, the sheer amount of data available means you need parameters to whittle down said data and decrease the amount of background noise in your information. Monitoring specific metrics can provide valuable information for your company, as long as you know what to look for.

Analytics are important for similar reasons. Setting your parameters for data collection is fine, but what you do with that data is vital. Analytics requires critical thinking to look for data trends and to understand why customers behave the way they do. It can be challenging to estimate what’s going on in people’s heads, but with the right analytics, you can make educated guesses about which features they prefer and what they want from your company or product in the future. 

How You Should Track Your Metrics

There are many software tools available to track specific metrics. Some social media platforms, like Twitter, Facebook, and Instagram have built-in tools that allow you to measure your performance within the apps themselves. These native tools are effective and collect accurate data, but it is time-consuming to compile data from multiple websites and accounts.

Instead of gathering that data manually, you can enlist the help of Kissmetrics to automate the data gathering according to your parameters. This saves time, energy, and overhead costs by keeping all of your data from multiple sources in one place. You can then run the reports you need and make fact-based decisions for the company. 

What Metrics Should You Track?

Choosing your metrics can be challenging with so many available. Some metrics, like total revenue for the year and operating expenses are particularly useful across the board. Others only apply in certain situations, like businesses with a subscription model, e-commerce or retail companies, or companies who must invest in long-term depreciable assets. 

Upper Funnel Metrics

Upper funnel metrics like those found in the Kissmetrics Funnel Report measure how aware people are of your brand and how widespread your audience is. The majority of people who know about your brand may not become customers, but it is important to have as much exposure as possible. These metrics can include:

  • Pageviews
  • Pages per session
  • Branded search
  • Website traffic
  • Bounce rate
  • Targeted engagement
  • Inbound links
  • Brand awareness

Lower Funnel Metrics

The lower funnel metrics measure customer conversion and following up with leads. This is where your audience starts to not just become aware of your brand but become customers. 

Usually, people aren’t ready to buy the first time they hear about you; they need some time to think over their purchases. These metrics can include:

  • Sales qualified leads
  • Revenue
  • ROI
  • Conversion rate

From these metrics, you can create KPIs to measure your progress like:

  • Customer acquisition costs 
  • Quality of leads 
  • Customer retention 
  • Customer lifetime value

How to Analyze Your Metrics

Your metrics will bring in a wealth of data, but that data is meaningless if you don’t know how to analyze it. As an example, if you send out a survey asking your customers how likely they are to recommend your brand to friends and family, (known as the Net Promoter Score), you’ll receive data showing the percentage of people who would recommend you, who wouldn’t recommend you, and who feel neutral about your brand.

However, with critical thinking, you can pull out many more insights than percentages. You might look into which customers were more likely to recommend your brand. Who are they? What are their demographics? The Kissmetrics person profile will give you specific details about a customer. 

Did their experiences differ significantly from people who had lower scores or was the score based around other preferences? Our path report demonstrates how a customer went through their user journey and might shed light on any significant differences. 

Questions to Ask During Analysis

As you analyze the data gathered for your given timeframe, it’s important to keep a few questions in mind as you dive into the reports. 

Have We Set Up Our Tracking Tools Correctly?

The only thing worse than making decisions based on no data is making decisions based on bad data. So make sure you check, then double-check your parameters, how your tools are working, and how reports are generated. If you see something in one of your reports that stands out as strange, it might be an issue with how you’ve set up your tracking tools. 

If you think there is a problem, but don’t know how to resolve it, Kissmetrics provides resources for support. It’s annoying to find that you’ve wasted time by tracking data incorrectly, but it’s better to find out now and solve the problem.

Is the Qualitative Data Accurate?

Hopefully, the answer is yes. However, there are a variety of reasons why users may not respond accurately to surveys or deviate from expected journeys. Users may have had a bad day and answer negatively. Or, they may not remember precise answers for your survey. 

To compensate for this, you should carefully consider the wording of your questions and how many questions a survey contains. Single-question surveys are often the easiest for busy people to complete. You should also ensure that your questions are simply worded and plainly ask for the information you want. 

Do Other Systems Deliver Similar Results?

While we don’t recommend having multiple software systems all tracking the same metrics, we do think that there is merit in comparing metrics with ones natively tracked through social media platforms, for example, just to ensure that your software is providing similar results. Small deviations can occur because of differences in certain parameters like timeframe. For instance, your timeframe parameter in your analytics tool might be “last 7 days” and “last week” in the social platform. And if the social platform defines “last week” as in the previous traditional 7-day week, then the data you collect will probably look a little different.

But if your results differ wildly between systems, that could be a sign that you haven’t set up the metrics correctly or that you aren’t measuring the same data.

Are the Metrics You’re Tracking Important to Your Business?

While you may be able to receive some guidance about which metrics would provide essential information for your business, the best guidance you’ll get is from the experience of trial and error. Some metrics, like sales revenue, customer satisfaction, and total profit are common to all industries, but many metrics are more variable.

We recommend selecting some of the more common metrics of your industry, to begin with, and then give them some time to collect data. If you notice that they aren’t providing any value, there are plenty of other metrics for you to try. 

What Decisions Can Metrics and Analytics Help You Make?

Metrics and analytics should be the basis for the majority of your business decisions. Fact-driven decisions are always more likely to be successful than random shots in the dark. 

This extends to decisions about which features to build, how to prioritize bug fixes, which types of products you should produce in the future, allocation of resources and much more. 

They can also guide your marketing team with insights and measurements about your user base. When it comes to attracting new customers, the insights gathered from your existing customers can give your marketing team ideas for everything from email campaigns to landing pages to social media campaigns.

In short, metrics and analytics allow your company to optimize its revenue and profit. 


Collecting the right metrics is just as important as your follow-up critical analysis of that data. Company decisions about product development, services offered, and merchandise expansion should all be driven by fact-based insights into current market trends. Tracking the right data can give you an edge over your competitors and keep you in the game.

Check out Kissmetrics to see how you could be leveraging your data.



Data, Metrics, and Analytics: What’s the difference?

What are business metrics? Definition and Examples

Analyzing Marketing Data: Differentiate between Metrics and Insights

Bounce Rate vs. Exit Rate: What’s the Difference

Most companies with an online presence have learned to be wary of a high bounce rate, but most analytics tools also give you information about your exit rate. Although many people tend to use the terms ‘bounce rate’ and ‘exit rate’ interchangeably, they measure different customer behaviors. 

Here we show you the difference between the terms, how to calculate the rates, and what you can do to reduce them.

What is Bounce Rate?

A bounce refers to when a user visits a single page on your website and subsequently navigates away from your website without clicking on any other elements on the page. That means the visitor doesn’t click any of the links to another page, leave a comment, or take any of the pathways to an affiliate partner. 

What is Exit Rate?

An exit rate refers to when a user visits a page on your website and then navigates away from your website. Exit rate doesn’t care which page they were on or how many other pages they looked at on your website. It just measures the percentage of people who exit your website after viewing a specific page. 

What is the Difference and Why is it Important?

Although the definitions of the terms are similar, there is a distinction between the two. Bounce rate measures the percentage of visitors who leave your website before visiting any of your other content. This can be a serious problem if visitors aren’t willing to give the rest of your website a chance and often indicates that your content or product isn’t what they were looking for. 

A high bounce rate might suggest that you should look more closely at your content and search engine optimization (SEO) to ensure that your website appears in relevant search results. Visitors may accidentally click on your website looking for an answer to a specific question or for a type of product that you don’t offer.

Focus on targeting the right audience of potential customers: people likely to be interested in your products or services and your company. 

On the other hand, the exit rate can help single out pages with irrelevant or poorly created content or poor UX. If a user has been navigating to multiple pages throughout their session and then they leave when they hit a specific page, that’s an indicator that something is frustrating about that page. 

Which is More Important?

One rate isn’t more important than another. Product analytics tools can measure both; just remember the metrics tell you different things. They both provide information, as long as you know how to combine these metrics with others to develop actionable goals.

Some companies prefer to focus on exit rate, instead of bounce rate, for deeper insights into why users are leaving their website. High exit rates on product description pages indicate an issue with the product description, graphics, or the product itself. For some reason, interested buyers have seen the page and decided they no longer want your product and left.

That kind of insight can’t come out of bounce rate since it focuses solely on customers who land on your home page or blog and then leave. If your webpage is meant to continue funneling potential customers toward your product pages or check-out, there is likely an issue. Many times, this is due to pathing complications where the user isn’t sure where to click or how to proceed down the conversion funnel. 

How to Collect and Use the Data on Your Bounce and Exit Rates

Kissmetrics can help you record bounce and exit rates on your website. The tool will gather the information and generate specific reports based on the timeframe and other parameters you enter.

Analyzing the data requires you to think critically about the page’s content, your website’s goals, and why users are leaving your website after visiting. Websites with blogs usually see a higher bounce rate on average because people will visit, get the information they need, and then leave to continue their business. 

How to Calculate Bounce Rate and Exit Rate

The bounce rate is calculated by dividing your total single-page visits by the total number of entrance visits. Exit rate is calculated by dividing your total exits from a page by the total number of visits to a page. This means that every bounce counts as an exit, but not every exit is a bounce. 

How Do You Reduce Bounce Rate?

Although bounces are a subset of exits, many websites find that their bounce rate is significantly higher than their exit rate. Considering it’s a piece of the overall exit rate, it seems strange that it would be larger, but it does make sense once you understand the two. Many people will follow links or click-through advertisements that don’t have enough information out of curiosity before deciding they aren’t interested.

A high bounce rate typically indicates some kind of dissatisfaction with the landing page. This isn’t always the case, as is generally not the case with blogs, but there are a few ways to improve a user’s experience with a specific webpage.

One way is to improve the content on the page. You could add more interesting elements to catch the reader’s eye, break up the text into smaller chunks with headers, add clearer calls-to-action, or place graphics throughout the page. 

Another way to improve the UX is to quicken the page’s load time. If you have too many visual elements on a page, this can slow down page load time, so try stripping some of the larger files like video from the page to see if that helps. You can also check the code to make sure it’s efficient. 

If you suspect your high bounce rate is related to visits from the wrong type of audience, try advertising your website or product to a smaller, more specific audience. Our cohort report looks at page visitors who complete multiple designated events or perform the same events repeatedly. This report allows you to group your customers according to when they first completed an event. This allows you to analyze your customers to see which cohorts are most likely to follow through your sales funnel to purchase and market to them specifically. 

How Do You Reduce Exit Rate?

A high exit rate is often a sign of an issue within your sales funnel. The user is visiting multiple pages on your website but, for some reason, is leaving the site before converting. The issue might be one of content. Your product descriptions might be confusing or they might not sufficiently highlight the benefits it brings to the customer. You could also consider lengthening blog posts. Posts that have 300 words or less typically lead to higher exit rates because a person can read them so quickly or they may not contain enough information for the reader. 

If your pages have strong content, the problem may lie in your calls-to-action, or lack of them, a complex purchasing process, or something else that is frustrating your would-be customers. 

Is There an Acceptable Bounce Rate or Exit Rate?

All companies will have a bounce rate and exit rate. Even the best-structured websites will receive visitors who click out of their pages. It’s essential to consider the content and type of page before deciding that a high bounce or exit rate is necessarily a bad thing.

For example, if you have a sign-up page that requires users to access an email and click on the link you provided there, you would expect the page to have a high exit rate; people need to exit to go to their email. Similarly, the confirmation page that the link takes you to may signify the end of their session for the day.

If a user navigates away to the email, that will be recorded as an exit. By opening the link in the email and getting to the confirmation landing page, that counts as the start of a new session on your website, so if the user then leaves, it will count as a bounce. 


Both bounce rates and exit rates for your website’s pages provide information about how your users are experiencing your company. When combined with other metrics, you can use this information to determine which pages need some improvement or where you need to rethink your sales funnel to turn more visitors into customers. 



Bounce Rate vs. Exit Rate: What’s the Difference?

Bounce Rate vs. Exit Rate

Bounce Rate Vs Exit Rate: 7 Things You Need To Know in 2019