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.
When it comes to marketing, what ultimately matters is achieving a wider reach. Yes, only when you attract the attention of more people, you will be able to send them into the sales funnel as leads. One of the best ways to execute this is to increase the web traffic to your money-making site.
That said, how do you know if your marketing efforts are working?
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.
Driving web traffic to your business site is important. However, your efforts will only go in vain if you do not target the right audience. This is certainly a nightmare for any marketer or business owner.
The question is, what is the point in promoting your business to people who don’t need your product or service?
No worries; because you can set things right for your business if you have a precise understanding of who your target audience is and where you can find them. After all, that’s the secret of successful marketing campaigns.
So, 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.
There is no better way than email marketing to get in touch with your potential customers with genuine pitches that convince them to buy what you sell.
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
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.
Make sure your emails are drafted in such a way that they deliver value to your potential customers. If the overall tone of your email is too pushy, you only end up annoying them. This can have a negative impact on your marketing efforts and stop you from achieving your KPIs.
Each business is different from others on various grounds like size, vision, objectives, products and services offered and so much more. However, as you know, generating more revenue is the chief goal of any business. Given the scenario, all marketing campaigns are devised to drive sales.
So, tracking your sales revenue is naturally a crucial key performance indicator.
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 said earlier, lead flow is the lifeline of your business that makes way for revenue generation. Qualified leads feed your business and facilitate you to scale it up in the long run.
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.
As an entrepreneur, you are aware that you need to invest money in your business to fuel it before you expect it to generate massive profits. You can consider your business being on the track of success when your profit exceeds what you spend on promoting it from time to time.
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.
Earning your customers’ trust is the key to retaining them while prompting them to purchase your products and services from time to time. Also, this is how you can stand your ground in the business space while new players enter the market every day.
So, how do you measure the customer support for your brand?
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.
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.
Do you know 73% of marketers believe social media marketing is effective?
People love to check social media. In fact, 54% of social browsers harness social media to research products. 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.
Finding new customers for your business is important. However, it is also equally essential for you to retain your existing customers. For instance, if a customer buying your product or service chooses your competitors over you for some reason, it certainly impacts your revenue and brand value in a negative way.
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.
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.