Metrics that Matter

19 Feb Metrics that Matter

The metrics for success in a craft business can vary depending on your specific goals —and you should set SMART goals for your business! It’s one of the best methods for assessing successful marketing strategies and continue growing in manageable, measurable ways. To learn how to set goals for your business based on metrics, read You Have Last Year’s Numbers: Now What? 

There are some universal metrics that every craft business should track to ensure growth and sustainability:

• Financial Metrics: Revenue, profit margins, return on investment (ROI), and cash flow.
• Customer Metrics: Retention rate, customer reviews and satisfaction, average order value (AOV), customer lifetime value (CLV), and customer acquisition cost (CAC).
• Production Metrics: Efficiency, inventory turnover, and waste reduction.
• Operation Metrics: Time and people management, order fulfillment time, and supplier reliability.
• Marketing Metrics: Website traffic, conversion rates, social media engagement, brand awareness and reach, and SEO ranking.
• Personal Success Metrics: Work-life balance, growth in craftsmanship and creativity, and the sustainability of the business.

Among these, marketing metrics play a pivotal role in growing your craft business. 

Whether you specialize in handmade quilts, custom crochet items, or bespoke handsewn garments, your marketing efforts ensure your products reach the right audience. Measuring marketing success is crucial for connecting with potential customers and ensuring your hard work translates into sales and a loyal following. If you need help with digital marketing, Stitchcraft Marketing is here to support your success with services and strategies tailored to your specific needs. You can check out our services here.

Key Marketing Metrics to Grow Your Craft Business

It’s important to understand which marketing metrics matter most so you can optimize your time and money toward efforts that drive results. Consider the metrics outlined below in relationship to the customer journey. You want to measure the success of your marketing efforts at every step in the customer journey, from brand awareness, audience demographics, social media engagement, and newsletter metrics to start, continuing on through SEO metrics, website traffic, conversion rates, return on ad spend, average order value, and customer acquisition cost. Strengthening each point ensures a smooth transition from curious customer to loyal fan. 

1. Brand Awareness. 

Brand awareness gauges how well your target audience knows your craft business. Are you the go-to name for handmade quilts or custom crocheted blankets?

Strong brand awareness builds trust and keeps you top of mind.

How to build strong brand awareness:

• Partner with influencers and bloggers to reach new audiences.
• Participate in craft fairs or local events to meet potential customers face-to-face.
• Maintain consistent branding across all channels, from your website to packaging.

2. Audience Demographics and Behavior. 

Understanding your audience and how they interact with your content is essential for tailoring your marketing efforts.

The more you know about your customers, the better you can meet their needs.

How to Use It:

• Use analytics tools to track age, gender, location, and interests.

Adjust your tone, imagery, and product offerings to align with your audience’s preferences.

3. Social Media Engagement 

Social media platforms like Facebook, Instagram, Pinterest, and TikTok are invaluable for showcasing your handmade crafts and building an audience. Instead of just looking at the number of followers, monitor the engagement metrics such as likes, comments, shares, and saves. This shows how well your content resonates.

Engaged followers are more likely to become customers.

How to boost engagement on social media:

• Post diverse content, such as tutorials, behind-the-scenes glimpses, and customer stories featuring your knitted creations or sewing projects.
• Interact with your followers by responding to comments and messages.
• Analyze which types of posts get the most traction and double down on those.

4. Email Open and Click Rates 

Email marketing remains one of the most effective ways to connect with customers, but its success hinges on how many people open your emails and click the links inside.

Strong open and click rates indicate that your emails are engaging and valuable.

How to improve your email open/click rates:

• Craft compelling subject lines to grab attention.
• Personalize your emails with customer names and tailored recommendations, such as patterns for crochet enthusiasts or quilting kits.
• Use clear and persuasive calls-to-action, such as “Shop the Sale” or “Discover New Arrivals.”

5. Search Engine Optimization (SEO) Metrics. 

SEO metrics include domain ranking, keyword rankings, organic traffic, and click-through rates (CTR). They reveal how well your website performs in search engine results.

Strong SEO drives sustainable, cost-effective traffic to your site.

How to improve your SEO ranking:

• Focus on long-tail keywords like “handmade quilted table runners” or “crochet baby blanket patterns.”
• Publish high-quality content, such as blogs and tutorials, to rank higher in searches.
• Optimize product/service pages with descriptive titles, alt text, and meta tags.

6. Website Traffic

Your website is your virtual storefront. Measuring how many people visit is essential for understanding your online visibility.

More traffic means more opportunities to convert visitors into customers.

How to make website traffic data useful:

• Identify where your visitors come from (organic search, social media, paid ads, or referrals).
• Track traffic spikes to see which campaigns or promotions drive the most interest.
• Collate the information learned in the previous steps outlined in SEO Metrics with your website information to craft stronger content for your site.

Pro Tip: Use tools like Google Analytics or other site auditors to monitor traffic and refine your digital strategy. Add UTM tracking codes to links shared in your newsletter, blog, and social media to gather more refined data.

7. Conversion Rate 

Getting visitors to your website is only half the battle. The real magic happens when they take action—whether it’s purchasing a handmade scarf, signing up for a quilting workshop, or downloading a free sewing pattern.

A high conversion rate indicates effective messaging and a smooth user experience.

How to improve your conversion rate:

• Optimize your checkout process to make it seamless.
• Use high-quality images and clear product descriptions.
• Experiment with compelling calls-to-action like “Shop Now” or “Learn More.”

8. Return on Ad Spend (ROAS) 

If you’re investing in ads, whether on Meta, Google, or other platforms, ROAS tells you how much revenue those ads generate for every dollar spent.

ROAS helps you assess whether your ads are profitable.

How to maximize your Ad Spend:

• Continuously refine your ad targeting to reach the most relevant audience.
• Test different ad formats, such as video, carousel, and static images showcasing your craft projects.
• Use clear, compelling ad copy that highlights the unique value of your crafty business offerings.

9. AOV (Average Order Value)

This is a key metric to measure the average dollar amount spent each time a customer places an order on your website or in your shop. It’s calculated by dividing total revenue by the number of orders during a specific period.

A higher AOV directly boosts your overall revenue without requiring additional customers.

How to Improve AOV:

• We have a blog post sharing 9 strategies to increase the average order value for your craft business. Read it here, or watch the Office Hours replay.

10. Customer Acquisition Cost (CAC) 

This metric measures how much you spend to gain a new customer through advertising and other marketing efforts.

Keeping your CAC low ensures your business remains profitable.

How to optimize your CAC:

• Focus on organic growth strategies, such as SEO and social media.
• Invest in retargeting ads to visitors who showed interest but didn’t convert.
• Compare CAC to customer lifetime value (CLV) to assess the long-term payoff.

Track Your Marketing Metrics

Tracking these marketing metrics will help you refine your strategies, attract more customers, and grow your craft business sustainably. 

By analyzing and optimizing your performance across these areas, you can turn your passion for sewing, knitting, crocheting, or quilting into a thriving enterprise. Start small, measure consistently, and watch your business flourish!

Are you looking for expert guidance in tracking your marketing metrics and crafting effective digital marketing strategies? Stitchcraft Marketing is your partner for success. Contact us today and discover how we can help your craft business thrive!