The 10 Marketing KPIs You Should Measure for Marketing Success
Marketing stands out as a key aspect of business growth since you need to get your brand out to others.
Due to this, many businesses will use marketing KPIs (key performance indicators) to track their success. If you want to know the best KPIs to track, you can look at the ten suggestions listed below.
Search and Website Traffic
Searches involve the number of people who find your website by using search engines. Website traffic lets you know how many people visit your website regularly from all sources, so you can use both KPIs to see how many people want to know more about your business. This lets you know if your search engine optimization improved your traffic.
This means you should check your organic search and website traffic to see their influence on each other.
If you’re going to be attracting new leads, you need to make sure they also end up as customers because if they don’t, your conversion rate is going to look bad. This is the percentage of visitors who completed an action such as signing up to your feed or making a purchase. Conversion rate is a very useful KPI as you can gauge the success of your lead generation. If you have a lot of traffic coming to a landing page but the conversion rate is low, you can optimize the content and tweak the CTAs to improve your conversion rate.
People check their emails every day, so email marketing should be a KPI your business tracks. Email marketing can include lots of KPIs such as
- Number of emails delivered
- Number of emails opened
- Click-through rates
- Open rates
- Spam rates
- Unsubscribe rates
- Bounce rate
- Social shares
By tracking this information, you can see how well your email marketing works and make adjustments based on the statistics you collected.
Since email marketing stands out as an effective marketing strategy, you need to get involved with it and track the statistics.
You can start by tracking your sales revenue which refers to the amount of money you made through your sales. Sales revenue gives you an idea of how much money you made from your customers and if you had a recent increase in your revenue. This lets you understand if your marketing efforts had an effect on your sales.
Make sure you check your sales revenue on a regular basis to see the progress and changes.
As you look into your leads, you should consider MQLs (marketing qualified leads) and SQLs (sales qualified leads). MQLs are people who showed interest in your business and SQLs are people who could make a purchase in the future. By following these types of leads, you can understand what demographics want to make purchases from your business.
Leads matter since they can become your customers, so you need to interact and encourage them to make purchases.
Return on investment (ROI) refers to how much money your business made in comparison to the amount it spent. In short, if your ROI increases, that means you made more money from your marketing. You should track your short-term ROI and your long-term ROI to understand which marketing techniques help you immediately and in the long run, respectively.
Tracking ROI gives you a straightforward way to see if your marketing efforts and spending leads to success.
Lifetime Value of a User
The lifetime value of a user (LTV) lets you know the amount of money the average customer spends on your business. The higher the LTV, the more customers support your business and trust the brand by providing recurring business. The LTV lets you know if you have loyal customers or ones who make a few purchases and leave to other stores.
You want to help the LTV increase as much as possible by improving your customer retention through your services.
Cost of Customer Acquisition
The cost of customer acquisition (CAC) lets you know how much money your business spends on average to get a new customer. Unlike most KPIs, you want this one to be lower since lower numbers indicate lower costs to get new customers. CAC can help you make budget decisions by showing the activities that don’t generate many conversions and what is generating more instead. If you see a steady decrease in your CAC, it means you’re efficient in acquiring new customers due to optimizations being implemented and better budget allocation. CAC can also help you identify opportunities that shorten lead time and convert customers by reducing expenditure and achieving KPIs faster.
Make sure you watch this number and look for decreases to check the performance of your marketing efforts.
Social Media Engagement
People love to check social media, so your business needs to get involved and interact with people on it. This will involve tracking the likes, comments, impressions, follower count, growth rate, reach.
When you know your total followers and new followers, you can find out what your growth rate looks like - New Followers/Total Followers x 100 + Growth Rate.
Additionally, you can calculate your reach with another formula: Post Views/ Total Followers x 100 + Post Reach Percentage.
Average engagement rate = Likes + Comments + Shares/ Followers x 100. Knowing this information can help you understand whether or not your strategy is working. It’s worth noting that each social media platform has its own analytics tool so you can monitor these statistics in one place instead of switching between apps.
Make sure you take advantage of social media since you can interact with your customers and leads to increase your revenue.
If your business wants to perform well, it needs to retain customers after drawing in new ones. To boost customer retention, you need to identify what makes existing customers stay. Using the Cohort analysis is one way to do this effectively. Cohort analysis is the study of common characteristics of users over a specific period of time or how long it takes a user from first purchase to second purchase. Let’s take, for example, a group of users who signed up for your mobile app last month. With the Cohort analysis for retention, you would understand how many customers continue to be active users in the days or weeks that follow.
It’s a better way of looking at certain data. The application of the cohort analysis is not limited to a single industry or function. eCommerce companies can use it to spot products that have the potential for more sales. In digital marketing, you can identify web pages that perform well based on time spent on the site or sign-ups. In product marketing, you can use this analysis to identify the success of feature adoption rates and reduce churn rates.
By focusing on customer retention rates, you can see if your efforts encourage your customers to return to your business.
Set and Track Marketing KPI Targets with Oppizi
Determining the right KPIs for your business can pose some challenges, so you could use software like Oppizi to help you out. It can help you track and optimize your KPIs as you determine which ones matter the most to your business for offline marketing. By utilizing software like this, you can make the planning aspect of your marketing KPIs easier for your business.
Make sure you review the KPIs available and find a way to track that key information.
For your business to succeed in its marketing, you need to take advantage of and track the 10 KPIs discussed above. Make sure you review each one and apply it to your business, so you can see how your marketing performs and make changes accordingly. For more information, you can always search the internet on relevant sites like Oppizi.com.