Marketing KPIs are perhaps the most important part of your business growth strategy. These key performance indicators serve as more than just a monitoring kit, they actually give you a clear distinction between effective marketing and campaigns that just don’t work. Although measuring profitability is a bit of a challenge, there are indicators that can help you weigh if you’re running a successful enterprise.
Let’s put it in perspective, shall we? If the cost of your marketing campaigns is more than your gross revenue, then you’re obviously doing something wrong. Now, if you don’t pay attention to monitoring and analyzing these indicators, then you won’t know if your strategies are working or just simply hemorrhaging your resources.
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That said, let’s take a look at the key indicators you need to measure if you want to develop strategies that ultimately pay off.
Revenue Growth Stream
The effectiveness of any marketing campaign is closely tied to growth in gross sales and revenue. As mentioned earlier, if your report indicates that your sales revenue surpasses the expenses you incur from your marketing activities, then you’re on the right track. If your strategy results in a steady stream of revenue, then you’re ok.
The sales team response time makes top five on the list for a reason. The longer your team takes to respond to a lead, the more likely you are to lose a sale. If your sales team takes anything past the 5-minute mark, the customer moves on. Measuring your response time will help you improve service delivery, and most importantly, it will help you maintain and lock-in crucial leads.
All the traffic in the world is useless if you have a conversion ratio of less than 5 percent per 10, 000 visitors. Traffic doesn’t translate to revenue, conversion does. This KPI helps you to benchmark, to get a baseline in two regards:
1. Your website’s conversion rate.
2. The quality of traffic to your site.
After you have this information, the key focus point would be to improve the rate of conversion.
This KPI is perhaps the most crucial one to measure. Note that this is a clear, constant figure that indicates how much you make after all your expenses. You may be raking in revenue in the seven figures, but if all of it goes to expenses then you need a new strategy.
Measuring your profit margins helps you keep a level head, it allows you to figure out whether to maintain course or try a different approach.
CPA (Cost per Acquisition)
Marketing can sometimes be a little frustrating, you may think you’ve locked down a client, but they’re still on the fence, so you have to go that extra mile just to close the deal. Measuring CPA helps you calculate how much it will cost you to convert a lead into a paying customer.
The CPA as a KPI is a key component when refining your marketing budget, especially if you have monetary constraints.
Customer Lifetime Value
This is a crucial metric because it offers you an idea of how valuable each converted lead will be to your company in the long-term. If you get customers who keep coming back, you can put more resources into your retention efforts depending on anticipated revenue.
Social Media Engagement
The beauty of social media is the fact that it makes the reach of your content exponential! It’s also a great strategy because measuring its dynamics is relatively simple. You have likes, shares, followers as well as in-built tracking and analysis, you really don’t have to do much. Different social media platforms work for different business models, so you will need to keep a close eye on which ones offer the most potential for value engagement and ultimately, for lead conversion.
Email interactions are crucial, regardless of what online business you’re running. They give you a chance to directly interact with your customers and get valuable feedback. Measuring anything from delivery rates to forwards, shares, and subscription/unsubscribe rates gives you a clear indication of what you need to do to improve on service delivery.
How effective is your content marketing? What’s the rate of conversion on your landing pages? These are key metrics to measure if you want to optimize your website to get the most out of your content placement, then this is a key indicator.
It’s all about closing the deal. That’s what all the hustle is for. Your leads are the target of all your marketing campaigns, and such, you need to ensure the cycle from MQL to SQL is as smooth as possible. Your leads are your ticket to better sales, to business growth, and to potential profit. This is why you need to constantly measure the effectiveness of your Lead generation strategies.
The key here is to prioritize. Although there are hundreds of marketing KPIs that are important, it is crucial to know which ones to focus on. This will require you to have clearly spelled out your goals, at which point you will be able to find the right metrics for your particular set of targets.
Keep these KPIs in mind during your next influencer marketing campaign with us. Get started today!
Author’s bio: Duncan Kingori has been in the writing profession for a decade now. He has great experience in writing informative articles, and his work has been appreciated and published in many popular publications. His education background in communication and public relations has given him a concrete base from which to approach different topics in various niches.