What are Marketing KPIs and how can you monitor them
Key performance indicators (KPIs) are essential metrics used to measure the success of a marketing campaign. They help to determine whether a marketing strategy is working and provide valuable insight into areas that need improvement. Understanding and using marketing KPIs is critical for any business looking to maximize the impact of its marketing efforts.
What are marketing KPIs? Marketing KPIs are specific metrics used to measure the performance of a marketing campaign. They help to track the success of a marketing strategy by measuring important aspects such as reach, engagement, conversion, and ROI. Different marketing campaigns may require different KPIs depending on their goals, but some common marketing KPIs include:
- Reach: Reach refers to the number of people who are exposed to a marketing message. This can be measured by tracking the number of people who view an advertisement, visit a website, or follow a brand on social media.
- Engagement: Engagement refers to the level of interaction between a brand and its audience. This can be measured by tracking metrics such as likes, comments, shares, and time spent on a website or social media platform.
- Conversion: Conversion refers to the number of people who take a desired action after being exposed to a marketing message. This could include making a purchase, signing up for a newsletter, or filling out a form.
- Return on investment (ROI): ROI is a key metric used to measure the financial performance of a marketing campaign. It is calculated by dividing the revenue generated by the cost of the marketing campaign.
Why are marketing KPIs important? Marketing KPIs are important because they provide valuable insight into the success of a marketing campaign. By tracking KPIs, businesses can determine whether their marketing efforts are working and identify areas for improvement. This can help to optimize future marketing campaigns, increase ROI, and drive more sales.
Additionally, marketing KPIs help to measure the impact of a marketing campaign on the bottom line. For example, tracking conversion rates can help to determine the effectiveness of a landing page or email marketing campaign, while tracking ROI can help to determine whether a marketing campaign is providing a positive return on investment.
How to choose the right marketing KPIs Choosing the right marketing KPIs is critical for measuring the success of a marketing campaign. The specific KPIs used will depend on the goals of the marketing campaign, the target audience, and the marketing channels used. Here are a few key factors to consider when choosing marketing KPIs:
- Goals: The first step in choosing the right marketing KPIs is to determine the goals of the marketing campaign. This will help to identify the key metrics that need to be tracked to measure success.
- Target audience: The target audience will also play a key role in choosing the right marketing KPIs. For example, tracking engagement metrics may be more important for a social media campaign targeting millennials, while tracking conversion rates may be more important for an email marketing campaign targeting business professionals.
- Marketing channels: The marketing channels used will also play a key role in choosing the right marketing KPIs. For example, tracking website traffic may be more important for a digital marketing campaign, while tracking radio or television reach may be more important for a traditional advertising campaign.
How to track marketing KPIs Tracking marketing KPIs can be done through a variety of tools and platforms, including web analytics, marketing automation software, and social media analytics tools. The specific tools used will depend on the marketing channels used and the KPIs being tracked.
It is also important to regularly review and analyze marketing KPIs to determine whether the marketing campaign is working and identify areas for improvement. This can help to optimize future
Here are some important points you need to be monitoring:
1. Sales Growth
The best way to measure the effectiveness of your marketing strategy is by measuring the growth in sales revenue. With this metric, you’re looking at how much of your total revenue was influenced by your marketing strategies. This is a great way to show your team the value of their efforts.
In a similar fashion, it’s helpful to know the number of leads your sales team closed. More leads mean more sales opportunities and a better chance of sales growth.
To be extra thorough, calculate your sales-qualified leads (leads considered “sales-ready” based on specific activities completed or lead score) and sales accepted leads (leads the sales team has contacted).
3. Lifetime Value of a Customer
This KPI tracks the revenue a business can expect from one customer over a lifespan. This is a good way to measure your company’s ROI and better strategize your business.
The lifetime value of a customer is calculated in a few ways using a formula that may vary according to your needs and the data you have.
4. Digital Marketing ROI
Return on investment assesses monthly and annual performance. Tracking ROI helps business owners plan strategies and budgets for upcoming periods.
Your return on investment indicates whether you should continue your efforts or stop using a particular marketing strategy (depending on the cost).
5. Cost of Customer Acquisition
This KPI refers to the cost incurred while convincing a potential customer to buy. With the cost of customer acquisition, a company can gauge how much they spend while acquiring each customer and budget accordingly.
The cost of customer acquisition is usually calculated by dividing the Total marketing investment by the number of customers acquired.
6. Sales Team Response Time
Measuring how fast your sales team responds to leads can be beneficial in improving any customer service or sales process.
7. Website Traffic to Website Lead Ratio
This KPI measures how much of your website visitors are converted into leads. It can also indicate the quality of the traffic your website generates. To improve this ratio, focus on improving the conversion rate.
8. Website Lead To Marketing Qualified Lead (Mql) Ratio
Use this KPI to track the quality of the leads your marketing strategies generate. This ratio indicates the number of the total leads generated by your website that are promoted to Marketing Qualified Lead. If this ratio is low, you should monitor the quality of your website traffic.
9. Quoted To Closed Customer Ratio
This refers the number of prospects your sales team converts into customers. Monitoring this helps you understand where process improvements are needed.
10. Website Traffic
This key performance indicator tracks the volume of individuals who visit your website. These visitors represent potential leads that could be transformed into customers. Keeping an eye on your website traffic enables you to obtain crucial information regarding your website visitors, allowing you to design marketing initiatives that cater to the correct demographic.
11. Social Media Reach & Engagement
Measuring social media KPIs assists in formulating your social media content strategy to reach your desired audience. Popular social media platforms like Facebook and Twitter offer in-platform analytics tools to track and assess this information.
In addition, other tools and platforms are available to monitor your social media profiles and assess your competitors’ profiles.
12. Email Marketing Metrics
Measure the success of your email marketing campaigns through open rates, delivery rates, unsubscribe rates, shares/forwards, and click-through rates. Use this information to make improvements to your email strategy.
13. Inbound Link Quality
Inbound links play a crucial role in SEO and can drive traffic to your website. Make sure the links to your site come from reputable, relevant sources to increase their value.
14. Landing Page Efficiency
Build landing pages that effectively communicate your offer and call-to-action. Track the number of visitors and conversions to see how effective your landing pages are. Use SEO and CRO techniques to improve your conversion rate.
15. Blog Post Engagement
Measure the engagement of your blog posts with your audience. Blogs can bring more traffic to your website, so it’s important to monitor their quality and length. Use SEO tools to track organic traffic and backlinks to your posts.
16. Mobile Traffic and Conversion
Ensure your website is optimized for mobile devices, as a large portion of internet users browse on their smartphones. Track the number of visitors, popular mobile devices, and conversion rates from mobile traffic.
17. Organic Traffic and Top Pages
Organic traffic, which comes from people finding your site through search engines, is a key indicator of the effectiveness of your SEO strategy. Track your top five blog posts and landing pages to see what’s driving traffic to your site.
18. Net Promoter Score (NPS)
Measure customer satisfaction with your business through the Net Promoter Score. This KPI shows how likely customers are to recommend your business to others, and provides valuable feedback and insights. Use this information to keep your customers satisfied.
19. Follower Growth on Social Media
Track the growth of your social media followers to gauge the success of your social media marketing efforts. Followers are a sign that your brand, content, and offers are resonating with your target audience. Use sponsored campaigns to boost your follower base.
20. Search Engine Rankings
Stay on top of your website’s search engine rankings to increase your visibility and organic traffic. Your ranking in search engine results pages (SERPs) can greatly impact the amount of organic traffic you receive.
Ensure the success of your digital marketing efforts by defining clear business goals, determining target metrics, selecting key performance indicators, and utilizing the right tools.
Track your KPIs consistently and make data-driven decisions. By staying vigilant of your performance, you can avoid common pitfalls in digital marketing