You won’t know how successful your business has become if you don’t measure your KPIs in marketing.
Key Performance Indicators, often known as KPIs, are essentially the measurements that your company tracks to determine the overall relative efficiency of your company’s marketing and sales initiatives.
You may get a better sense of how well your company is doing by following the correct KPIs. Your sales and marketing teams’ contributions to ROI are readily apparent when KPIs are linked to their respective performance measures.
How to measure your KPIs in marketing
You cant measure your marketing KPI if you haven’t set them. The first thing to do before starting a marketing campaign is to outline your key performance indicators and map out ways you can reach them. With that, you can easily measure your progress along the journey.
You can use tools to track your KPIs or make someone in your team in charge of monitoring and tracking them.
Examples of KPIs in marketing
1. Cost per lead, CPL
Cost per lead, also known as CPL, is a metric that allows you to assess the efficiency with which your marketing initiatives generate new sales leads. It assigns a monetary value to each lead generated by your campaign and tracks the results. This is particularly useful for determining the success of online advertising solutions such as Google AdWords or social media advertisements. A campaign is effective when you get a big number of viable leads at a low cost per lead (CPL).
2. Marketing qualified leads, MQLs
To put it simply, a marketing qualified lead is a lead that is ready to be contacted by your sales team. if you’ve already defined what a qualified lead looks like for your firm, you can easily trace the stages that lead to a contact’s preparedness for sales and extract the most productive spots in the marketing and selling pipelines.
3. Customer retention
The efficacy of your company in retaining customers over the long term is measured by customer retention. To improve your company’s reputation, customer service procedure, and overall client experience, you should pay special attention to this key performance indicator. This is because attracting new consumers is more expensive than retaining existing ones. Your customers should come back if they’re satisfied with your services so you don’t put a ton of time and resources into attracting new clients
4. Marketing ROI
Return on investment, often known as return on investment (ROI), is a metric that allows you to determine how much income is created by a certain marketing campaign when compared to the expenditures of executing the campaign. The return on investment (ROI) may be considered the most significant indicator to monitor and evaluate.
To calculate this KPI, divide the number of leads your campaign is generating by the opportunity value, or divide your average value-per-win by your average lead-to-win ratio, and multiply the result by one hundred. Even though ROI is an important and necessary KPI for your marketing, it does present some challenges. For example, it may not always be possible to determine a direct return in certain situations, such as when a lead views an ad but does not click on it before visiting your site at a later date.
5. Sales qualified leads(SQLs)
The sales qualified leads metric gives you an overview of the number of potential clients who turn out to be sales prospects in your organization. It is possible to identify the strengths and shortcomings of your lead generation and sales pipeline procedures if you know how many leads your team is turning to sales. It’s an excellent indicator of how effective your sales team is using their current resources; using this information, you can assist your sales team in reaching its maximum potential.
6. Cost per customer acquisition
Several factors go into how much money it costs for a company to acquire a new customer. In addition to the costs of the product itself, the cost per customer acquisition includes the costs involved in the less visible stages such as research and marketing. Each new customer you bring onboard can be cost-effectively converted by knowing how much it costs you to acquire them. Finding the most profitable products for your company can be as simple as comparing the cost per customer acquisition.
7. Sales revenue
This is a straightforward KPI for tracking how well your company is doing in terms of producing income. You can predict your company’s future growth trends and projections using a variety of data factors. Both from a company-wide and an individual-level perspective, you can use it to set goals that are specific to each member of your team. This is a great strategy to keep your company growing and, as a result, increase your revenue.
8. Opportunity to win ratio
Using this ratio, you’ll be able to see how many quality leads you to convert into sales each month. You may now check your sales team to know who on your team excels at creating opportunities but struggles to close sales, Who can complete a deal with almost anyone but may not view their ability to make the first contact as one of their strengths and you can use this information to train your sales team in the areas they need the most, both individually and collectively.
9. Conversion Rate
Conversions occur when a user performs the desired action that was promoted to them. You can keep track of a wide range of conversions for your marketing activities. During a conversion, a person may:
- Subscribe to your emails
- clicks on a link
- Submit an application
- Dial a number
- Purchase a product
- Alternatively, they carry out the action you requested.
To calculate your conversion rate, divide your total number of conversions by the total number of visitors to your website
Formula: Conversion Rate = Total Conversions / Total Views
Cost per Conversion = Budget / Conversions / Number of Conversions
Other marketing KPIs to measure in your business
A useful form of product marketing KPI is the number of product demos given to potential clients
11. Growth in sales
This is the number of sales that come in within a certain period.
12. Rankings in search results
In digital marketing, one of the most popular key performance indicators is tracking where a website appears in search engine results (SERPs).
13. Website Traffic that Comes From Within the Site
The website traffic that comes from natural search results is referred to as “organic” site traffic.
14. Traffic from Referring Sites
The amount of traffic sent to a website via links to other websites is referred to as referral site traffic.
15. Traffic from social media
When people use social media to find and visit a website, this is referred to as “social site traffic.”
16. Shares on social media
The number of times a piece of content has been shared on the most popular social media networks is referred to as the “social shares” metric.
17. Total Nomenclature in the Media
Press mentions are an example of a key performance indicator (KPI) for brand awareness. In other words, how many times a media outlet has written about or mentioned you.
18. The number of backlinks
Inbound links are hyperlinks to your website from media outlets or other websites.
KPIs in marketing: FAQs
What is a marketing KPI?
Key Performance Indicators (KPIs) are precise goals that a marketing team aims to attain over time. Marketers can have an impact on the entire company or just the marketing department, depending on how they use key performance indicators.
How important is KPIs in marketing?
Key performance indicators help to measure your business’s success and failure with Key. A KPI, often known as a flash report or dashboard, gives business owners and managers a snapshot of how their organization or specific departments are functioning at any given time.
What’s the best KPIs to measure for your business?
The most important KPI in your business is the marketing KPI. this is because being successful at marketing means more people will see your business and this can easily lead to more cash.
How do you achieve your KPIs in marketing?
The best way to track progress toward your long-term goals is to start with the end in mind and work your way backward to the smaller, more manageable milestones you’ll need to cross off your list along the way. This way, you can constantly reassess and change course as you work toward your larger goals.
Final words on KPIs in marketing
Wanna work with a digital marketing agency that prioritizes KPI in marketing?
You can count on our digital content marketing team to conduct research into your sector, learn about your company, develop a specific strategy for you and your team, as well as offer regular reports on how were reaching your marketing KPIs.