Do you know what makes Marketing efforts of your company be successful? Any clue about the performance of your Marketing actions? Any indication why your company is doing well or not doing so well? Without a doubt, know the main Marketing KPIs It is the first step.
Understanding what works and what doesn’t in Marketing should be an imperative part of your business growth strategy. If it isn’t, then you should probably keep reading.
Let’s learn more about KPIs, and review some examples that will help you measure the impact of your strategy and optimize it.
Marketing KPIs: what are they?
A KPI is a key performance indicator that measure the productivity of your company and the achievement of a certain goal or objective over time. There are KPIs for every aspect of the company, be it financial, marketing, sales or operational.
A great way to analyze and report on your KPIs is to create custom dashboards in automation software
Now that you know what a KPI is, let’s look at some examples.
1. Customer acquisition cost (CAC)
The customer acquisition cost (CAC) measures the amount of money it takes to convert a potential lead into a customer.
This metric can be used to improve your Marketing strategy, because it helps you make important budget decisions.
For example, you don’t want to spend too much money on acquiring a customer if it isn’t going to make a profit. Basically, this helps companies decide how much money to spend to attract customers.
2. Customer lifetime value (LTV)
Another of the Marketing KPIs which can help you determine how much money should be spent on Marketing is linked to the customer lifetime value. This metric indicates the total amount of revenue that a business can expect to earn from a single customer.
It is a metric that is useful to compare it with the CAC. For example, if your CAC is higher than your LTV, then you are probably spending too much money on customer acquisition.
3. Return on Investment (ROI)
Return on Marketing Investment refers to the amount of money earned, compared to cost and the investment made in Marketing actions.
To calculate this, we subtract the Marketing expenses from the sales growth, and then divide that by the cost to get the Return on Investment.
In Marketing, keep in mind that it can be difficult to directly attribute sales growth to a campaign of marketing. If that’s the case, you can subtract the average organic sales growth and marketing cost from the sales growth, and then divide by the cost.
4. Return on Advertising Investment (ROAS)
Return on ad spend is a more specific KPI that you can use to determine the success of your advertising campaigns.
This metric measures the revenue generated compared to the investment made in an advertising campaign and it is usually a ratio.
For example, let’s say you earned $ 10 for every dollar spent on an advertising campaign. That means your ROAS for that campaign is 10: 1.
5. Qualified Lead for Marketing (MQL)
A MQL (Marketing Qualified Leads) is a Lead who has committed to your company and you could become a more serious prospect if you cultivate that relationship.
This is a core KPI because it helps you understand how many prospects are reaching. Also, when compared to qualified sales prospects (SQL or Sales Qualified Lead in English), allows you to measure how many MQLs are converted to SQL and then to customers.
6. Qualified Lead for Sales (SQL)
If an MQL is nurtured correctly, then it eventually becomes a sales lead. A SQL is a potential customer who is ready to speak with someone from your sales team, and who has previously been analyzed and qualified.
This KPI is helpful in understanding how many of your leads are in advanced conversations or negotiations with your sales team.
7. Followers growth
As a Marketing expert, one of your tasks could be to management of Social Media accounts of your company. Un Useful KPI for tracking is the growth of followers.
Most likely, one of your goals is to increase the level of awareness of the brand, and to interact with the public. Growing followers is a good way to measure the success of those goals.
8. Conversion Rate
The Conversion rate is the percentage of visitors who complete a desired action. The desired action can be anything from completing an online Form to signing up for a service or purchasing a product.
This is one of the Digital Marketing KPIs more interesting than you could measure, since it allows you to know how successful you are in attracting potential customers.
For example, if the desired action is to complete a Web Form, the measurement of the Conversion Rate in relation to this objective will show you if you are gaining many or few prospects. And in the event that the rate is low, rethink your strategy.
9. Website Visitors
If you are a marketer, attracting people to your company is one of your main objectives. One way to do this is by having them visit your Website.
The number of visitors to a Website is an important KPI because it could be behind the success of several subsequent Marketing campaigns.
For example, if you are tracking the organic web traffic, then you will be measuring the effectiveness of your SEO strategy.
On the other hand, if you are tracking Web visitors coming from Social Networks, then you could use this KPI to see how many referrals your Social team sends to the Site.
10. Commitment to Social Networks
By now you know that Social Networks play an important role for Marketing. One of the main KPIs of Marketing for Social Media is the level of commitment or Engagement that you manage to establish with your audience.
In this aspect, you can track likes, shares, comments, messages, tags or mentions. Any way a customer or prospect interacts with your brand can be counted as engagement.
Measure it can help you analyze the success of your publications on Social Networks.
11. Referred traffic
The referred traffic It is an ideal KPI to understand where your website visitors come from and how most people find your business. This information is useful to build your general marketing strategy.
12. Net promoter score (NPS)
The net promoter score is a way of measuring the customer satisfaction. This KPI measures the probability that your customers will recommend your business.
When calculating your NPS, a good practice is enable an additional space for comments in the tool or app you use to measure it. This metric can give you a direct and easily actionable feedback, as well as valuable information from your customers.
It is important to listen to your customers and really understand them, and this KPI will help you in that regard 🙂
13. Organic traffic
It is important measure the success of your SEO efforts. To do this, you will likely track the KPI linked to the organic traffic and keyword performance.
With an SEO tool, you can see how well your business is ranking in search engines for certain Keywords.
This KPI will inform about your organic and SEO strategy in general.
14. Attendance at the event
If you are running an event, for example, you will most likely do a monitoring of assistance levels. This will allow you to know how well your Marketing team did in attracting people to that face-to-face or online activity.
15. Customer retention
Although you might think that customer retention is not a Marketing KPI, it is actually important to consider.
The client retention It is a great indicator to track, because you can use that information for your Marketing campaigns.
In addition, this metric helps you better understand your customers, so you can impact them more effectively.
In conclusion, Digital Marketing Indicators o Marketing KPIs are important because they allow you to measure your success as a marketer and the effectiveness of the strategy you are implementing. You will go to them on a daily basis, because you will need to keep track of the campaigns in the short and long term. So the best with those metrics!