Are you a marketer?
What you measure will decide your success. Everything that can be measured can be improved. If you do not measure, you will never succeed in your marketing efforts. This is true for many businesses.
Let us understand it in detail.
Marketing Metrics and their Significance
KPI refers to the Key Performance Indicators for Marketing that help you to understand where you are in terms of your marketing efforts. While you define the marketing KPIs. You need to keep in mind the following things:
- Your business revenue
- How many leads are sales-ready or sales-qualified
- What is the cost per acquisition
These are critical things to remember as they will help you improve and enhance your campaign efforts according to the need. It helps you to drive a successful digital marketing strategy.
The right marketing KPIs are always to help you find out the best campaigns and tactics that greatly impact whether you reach your sales and marketing goals with the least or optimum efforts.
Then you would probably understand the importance of tracking metrics for effective project management.
Let us take you through some of the best metrics that you must be tracking for your business:
1. Cost per Acquisition (CPA)
It is nothing but the cost acquired for every closure or customer. It is the amount of money you spend for a lead to convert it to a customer. It is highly used to boost and enhance your marketing because it is all you need to make budget-friendly decisions for your business. In a nutshell, it helps you to understand how much to spend, where to spend, and how to get the best out of it.
At WebPipl, we track our CAC by dividing our total marketing spend by the number of new customers acquired during a specific period. By doing so, we can analyze the effectiveness of our marketing campaigns and optimize our budget accordingly. For instance, by tracking CAC, we discovered that our cost-per-click (CPC) advertising was generating more qualified leads than our social media advertising.
As a result, we optimized our marketing spend towards CPC advertising, resulting in a lower CAC and higher conversion rates. Therefore, for SaaS businesses like WebPipl, it’s crucial to track CAC to determine the channels that generate the most qualified leads and allocate marketing spend accordingly.By Raju Thammala, founder of WebPipl, an AI recruitment software.
2. Return on Investment (ROI)
This is the default KPI that must be tracked for all aspects of your business. It helps you to understand what you get from these efforts. If your spending is high and ROI is low, then you are not doing it right. You may incur a business loss.
So, ROI should always be higher and many folds than your spending. Then only you are doing it right. You must assess and evaluate your monthly and annual performance. Based on the performance, you should initiate strategies that help you align with it.
As a digital marketer, it’s essential to focus on the right KPIs that align with your business objectives. While there are several metrics to track, the most important digital marketing KPI is undoubtedly the Return on Ad Spend (ROAS). ROAS measures the revenue generated by your digital campaigns relative to the amount spent on advertising.
By tracking ROAS, you can determine the effectiveness of your campaigns and optimize your ad spending to achieve maximum profitability. So, always prioritize tracking your ROAS to make data-driven decisions and drive better results for your business.– By Harshit Gupta (founder of GrowthAcad)
3. Lead-to customers
Do you know how important it is to generate leads that convert to customers? Very important, It is not the leads you generate but the quality leads that convert to customers that hold more value. So make sure that you generate customers from your leads.
4. Number of leads you generate
The leads you generate from marketing give you sales, and sales give you revenue. So, to start from the base, it is important to keep track of the number of leads you generate from each campaign and bring down the cost per lead for each campaign based on the market standards. It is the best way to optimize and run your campaigns regularly.
5. Organic traffic growth
Organic is all about flowing in naturally. If you can spend a little in Search Engine Optimization and sit back and relax, you will see results coming out. Your brand gets easily recognized and published on the first results of search engines.
Then you will be visible to all prospects who are searching with a similar internet., Once you get better results and rankings on the search engine, your traffic will fly high.
Keeping track of traffic and its sources – where it comes from – like search engines, social media, email campaigns, etc., will help you optimize the channel and get better results in the upcoming days and months.
6. Landing page conversion
Any ad you run is always associated with a landing page, so you can clearly define which landing page and which campaign. By keeping track of it, you can define the best and worst performing pages and campaigns and can tweak them accordingly so that you can identify the gaps and look for improved versions day by day.
The landing page conversions refer to the leads and registrations you get through these landing pages for the campaigns so that 6ou can understand the patterns and behavioral differences as it passes through the consecutive stages of the sales pipeline.
The sales conversions also help you to understand from which source or campaign it was created, and according to the results, you can optimize the resource to get more.
7. Social media metrics
Business is social, and the impact of social media on every influence is crucial. By keeping track of your social media metrics –
- How many followers do you generate per month
- What is your audience engagement rate
- How many people see your post on social media
- How many engagements do you get on average
- What repose rate do you maintain on social media
- How many people visit your brand website via social media and vice versa?
All these are some of the essential questions that can redefine your social media and email marketing strategy and use social media as a big channel to communicate, market and convert, and eventually grow your business many folds.
8. Mobile conversions
With a responsive and high-performing website, you can evaluate the mobile website traffic, the number of leads generated, or even the mobile conversions so that you can harness the power of the platforms and evaluate them that way.
Bounce rate is important too – the lower you maintain, the better will be the website performance.
9. Net Promoter Score (NPS)
NPS refers to the benchmark of rating your business for customer satisfaction. It helps you understand how satisfied your customers are with your service.
This is important because this is the real feedback you get from your prospects and customers on how you can improve your service. As a giant marketer in the industry, it is your responsibility to understand your customers and their problems and give them solutions.
So, NPS is a great way to understand what your prospects expect and craft your communication to give them the apt solution they need.
10. Retention of Customers
Customer retention is the process that businesses or organizations take to reduce the defections with the customers and stay associated with them for the long term. It is an important metric that defines your brand’s popularity and the client base’s strength.
How many of your customers stay with you for a long time? Or what is your cross-sell or upsell ratio?
If you have no data-driven answers, you need to restructure your strategy.
You need to retain your customers as much as possible. It will help strengthen the bonding and eventually convert your customers into evangelists who can start bringing more businesses to you.
|Cost per Acquisition (CPA)||When you want to track the cost of acquiring a new customer through a specific marketing channel or campaign.|
|Return on Investment (ROI)||When you want to measure the overall profitability of your marketing efforts and determine if they’re generating a positive return.|
|Lead-to-customers||When you want to track the percentage of leads that convert into paying customers, helping you identify areas for improvement in your sales funnel.|
|Number of leads generated||When you want to track the effectiveness of your lead-generation efforts and optimize your marketing budget accordingly.|
|Organic traffic growth||When you want to track the growth of your website’s traffic from search engines and other organic sources.|
|Landing page conversion||When you want to track the percentage of visitors who convert into leads or customers after visiting a specific landing page.|
|Social media metrics||When you want to track the performance of your social media campaigns and engagement rates across different channels.|
|Mobile conversions||When you want to track the percentage of mobile visitors who convert into leads or customers.|
|Net Promoter Score (NPS)||When you want to measure customer loyalty and satisfaction with your product or service.|
|Retention of Customers||When you want to track the percentage of customers who return and continue to use your product or service over a specific period of time.|
All set to rock with your marketing efforts? Anything you measure will drive you toward success. For every business, no matter what industry it belongs to, having a better way of tracking metrics helps you streamline the processes and track the results.
To help you track effectively and get in one solution for all your marketing seeds, you can rely on platforms like Yoroflow, an automation software with huge benefits spanning diverse industry niches.