11 Sales & Marketing Metrics Every Farmer Should Track

Keeping track of metrics and key performance indicators (KPIs) is important for farming success. It helps farmers monitor performance, spot trends, and maximize their resources, which leads to better efficiency and profitability.

If you need a recap on the most important farm sales and marketing KPIs and metrics, you're in the right place. Keep reading as we break down the most important metrics every farmer should track, including insights from our Direct-Market Farmer’s Data Handbook.

Key takeaways

• KPIs track specific farm goals and how well you're achieving them (e.g., AOV, COGS, CAC ) and help farmers boost efficiency and profitability.
• Metrics are a general measurement of farm performance (e.g., CLV, abandoned cart rate, most active days and times) but don’t relate to any specific objective(s).

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What is a KPI?

Key performance indicators (KPIs) show how effectively a farm achieves its key business, operational, and financial goals. It helps farmers monitor productivity, improve overall performance, and make smart decisions to boost efficiency and profitability.

KPI vs metrics: What’s the difference?

Farm metrics provide broader performance insight but don’t relate to specific objectives, while KPIs are focused on strategic goals.

Top 11 KPIs and metrics farms and food hubs should track

5 KPIs

1. Average order value (AOV)

Average order value (AOV) measures how much money customers spend on average when they make a purchase. It helps farmers understand customer purchasing behaviour, which can help them develop better farm marketing and sales strategies. 

AOV = Total Revenue / Number of Orders

Farm e-commerce platforms like Local Line offer insight on AOV, as seen below!

Here are a few ways to increase your farm AOV:

• Make offers in your online farm store (i.e., offer customers coupon codes).
• Incorporate cross-selling and/or upselling strategies (i.e., recommend marinades to go with their steak and/or price larger quantities at a discount).
• Improve your storefront best practices (i.e., include more photos, better product descriptions).

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➡️ For more ways on how to increase your AOV, download our guide: 9 Ways to Increase Your Farm's Average Order!

2. Cost of goods sold (COGS)

Cost of goods sold (COGS) is the direct costs (e.g., expenses for seeds, labour, feed) associated with producing products a farm sells. Managing COGS effectively can help farms improve their profitability and stay competitive in the market.

COGS = Beginning Inventory + Purchases in Current Period − Ending Inventory

For a detailed breakdown of calculating COGS plus an example, check out our blog on How to Determine Cost of Goods Sold for Your Farm Products.

Here are some effective ways to reduce your COGS: 

• Centralize all your farm data and operations in a single farm software like Local Line. Streamline it even further with integrations to save time, reduce errors, and open up new efficient workflows.
• Keep your equipment well-maintained to prevent expensive repairs and downtime.
• Manage your workforce effectively and provide good training to minimize labour costs.

3. Customer acquisition cost (CAC)

Customer acquisition cost (CAC) is the total cost (i.e., sales, marketing, advertising) of acquiring a new customer. CAC helps farms make informed decisions on budget allocation and marketing strategies to attract new customers without spending too much.

CAC = Total Marketing & Sales Costs/Number of New Customers

For example, a farm’s total marketing and sales cost was $500, and they acquired 30 new customers. Their CAC for that month is: 

CAC = $500 / 30 = $17

Looking to make the most of your CAC? Here are some helpful tips:

• Target the right audience through data-driven marketing strategies to find converting customers.
• Use digital marketing tools (e.g., email marketing, SEO) to reach a broader audience at a lower cost.
• Foster customer loyalty by providing great service to lower the need for ongoing marketing costs.

4. Revenue per customer

Revenue per customer measures how much money, on average, each customer brings in over a specified amount of time. It's a helpful way for farms to understand how much their customers spend and how profitable each customer is.

Revenue per Customers = Total Revenue/Number of Customers

To illustrate, a farm made $10,000 over three months and served 200 customers. Their revenue per customer is: 

Revenue per customers = $10,000 / 200 = $50

To boost your revenue per customer, try out these effective strategies:

• Upsell by promoting a more premium version of the products customers are already interested in (i.e., suggesting organic options).
• Cross-sell by suggesting additional products that complement what the customer is already buying (i.e., if a customer buys vegetables, suggest adding herbs).
• Give customers loyalty rewards (e.g., 20% off coupon code) for coming back and making repeat purchases.

5. Profit margin

Profit margin measures the percentage of revenue that remains as profit after all expenses have been deducted. It shows how efficiently a farm manages its costs relative to its sales, giving a clear picture of its financial health.

Profit Margin = (Profit/Total Revenue) x 100

For example, your farm made $2,000 in profit over the last month, and your revenue was $5,000. Your profit margin is:

Profit Margin = [($2,000/$5,000) x 100] = 40%

To enhance your profit margin, focus on reducing costs and increasing revenue.

To reduce costs, consider the following ideas:

• You can get better prices by purchasing inputs (e.g., feed, seeds) in bulk.
• Regularly maintain equipment (i.e., set reminders for regular equipment maintenance) to avoid and/or unexpected costly breakdowns and repairs.

And to increase your revenue, try out these ideas:

• Set a minimum order value for your online store to account for all costs associated with fulfilling the order(s).
• Diversify product offerings by introducing new products (i.e., adding more fruits to a shop that mainly sells vegetables) to cater to customer needs and preferences.
• Create value-added products (e.g., jams, sauces) to bundle with like-items which can encourage larger orders.
• Streamline your operations and workflows with automated inventory management.

6 Metrics

6. Customer lifetime value (CLV)

Customer lifetime value (CLV) is the total revenue a farm can expect from customers over the entire relationship duration (i.e., 2 years, 5 years). CLV helps inform farmers of customer retention strategies that foster long-term relationships, boost profitability, and ensure sustainable growth.

CLV = Annual Revenue / (1 / Annual Churn Rate)

For example, assume 10 customers buy a total of $1,000 from you (i.e., your revenue in year 1 is $1,000). Let’s say they churn at a rate of 50% (so 0.5) annually. Here’s what your CLV would look like for each of those years:

Year 1 CLV = $1,000
Year 2 CLV = $1,000 /(1/0.5)= $500
Year 3 CLV = $500 / (1/0.5)= $250
Year 4 CLV = $250 / (1/0.5) = $125
Year 5 CLV = $125 / (1/0.5) = $62.50

The CLV for 10 customers, over 5 years with a 50% churn rate is: 

‍CLV = $1,000+$500+$250+$125+62.50 = $1,937.50

To boost CLV, farms can focus on the following: 

• Implement a subscription program. You can transform one-time sales into reliable, recurring revenue from consistent and increased customer purchases. 
• Provide top-notch customer service and a hassle-free purchasing process to build strong loyalty.
• Implement rewards programs to encourage repeat purchases and longer customer relationships.
• Act on customer feedback to improve products and services to ensure customers stick around.

7. Top sellers and product sales

Tracking top-selling products and overall product sales provides valuable insights into customer preferences, market demand, and profitability. It can help farmers make informed decisions to optimize production, maximize revenue, and ensure their farms' financial health.

With this kind of farm metric, farmers don't have to guess as much about what to grow and/or which cuts to butcher if you run a ranch. This avoids wasting any of their hard work and resources. We all know that growing what you can’t sell wastes time and money. You work hard–make sure it all pays off!

8. Repeat vs. non-repeat customers

Repeat customers are those who make multiple purchases over time and bring stable revenue, valuable feedback, and word-of-mouth promotion. Non-repeat customers make a single purchase but help expand market reach, offer conversion opportunities, boost farm sales, and provide insights for potential improvements. 

While it’s important to meet the needs of both groups to build a loyal customer base, the goal for any successful direct-to-customer farmer should be to build repeat business. This makes your revenue more consistent and predictable. 

Here are some tips on increasing repeat customers:

• Offer pre-orders for upcoming harvests or seasonal products. This ensures customers commit in advance, fostering a sense of exclusivity and anticipation
• Increase customers with subscriptions. This fosters loyalty and simplifies reordering, increasing repeat purchases and customer retention.
• Invest in digital marketing efforts (e.g., social media, email newsletters, targeted ads) to keep customers informed and interested in returning to purchase.

9. Delivery vs. pick-up and AOV by fulfillment method

Tracking delivery versus pick-up preferences is key for optimizing farm operations, enhancing customer satisfaction, and boosting profitability. It's helpful to know if your customers prefer delivery or pick-up and if one method is just not as popular as the other.

For example, some customers might prefer pick-up, so consider looking into that more. Or, if you notice customers in one area aren't spending as much, consider not offering delivery there. 

Tracking delivery versus pick-up can also show where your highest AOV and total sales are coming from. Have a great AOV/sales number in one area but a drooping metric in another? Try marketing upsells specifically to the customers on the underperforming route. 

10. Abandoned cart rate

Abandoned cart rate measures the percentage of online shopping carts that are created but not completed with a purchase. It helps farmers understand potential lost sales and highlights where customers drop off in the buying process.

Ideally, you want to have a healthy abandoned cart rate of around 30% and below. However, depending on what you sell, that can range from as low as 5% to 20% for non-perishables or retail products.

Here are a few tips on reducing abandoned carts:

• Send customers (e.g., social media, emails) enticing offers like coupon codes! This increases the likelihood of customers following through with their pending purchase.
• Re-engage customers with personalized offers (i.e., offer free shipping) or assistance to help them complete their orders.

11. Most active days and times

Knowing customers’ most active days and times of purchasing is helpful in that it can help you decide when to open your store (if you have active store hours) and when to plan updates (if you run a 24/7 store). 

This can help you adjust your store hours to match your customers' needs, making it more likely that they'll visit when you're open. This can also help you maximize farm sales opportunities and keep your customers happy by giving them convenient shopping times.

For example, if you're getting many orders in the evening, you might have many working professionals or families in your customer base. If you get orders throughout the day, you could have retirees, students, or people working different shifts. 

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➡️ Harness the power of data and reports to boost your farm's success! Get the Local Line Data Handbook to help you make strategic business decisions, fine-tune your operations, and grow your profitability. 

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Track farm KPIs and metrics effortlessly with Local Line

And there you have it–the top eleven KPIs and metrics every farmer should know for achieving farming success. Whether you run a farm, CSA, food hub, or sell wholesale, numbers are valuable in driving your farm strategy and decision-making. 

As seen above, Local Line offers 50+ reports and dashboards to make reporting and analytics easy. See how well your farm sales and marketing are doing, highlight trends, identify which products are really popular, and find areas for improvement.