Key Performance Indicators (KPI) measure your industry’s marketing performances, helping you reach your marketing objective faster. It is crucial that brands identify, understand, and track the critical KPIs to expand their growth. Below, you will find an overview of the 7 major KPIs that you should always keep an eye on.
1. Sales Metrics:
The first and the most famous indicator is the sales metrics, which directly reflect the business growth. An impressive performance of the sales department is probably what makes the CEO and the stakeholders happy.
Sales metric is used to measure the performance of the sales team; it also helps in evaluating the effectiveness of each sale activity. Sales revenue should surpass the expenses of your marketing campaigns.
2. Customer Lifetime Value (CLV):
CLV helps businesses get into the head of customers and understand the decisions that they make. Thus, this metric helps businesses have an estimate of how much money each customer will spend on the offered services or products. It assists businesses in designing efficient marketing strategies by identifying customers’ financial worth. This can help companies prioritize potential customers based on the revenue that they bring. CLV alone can help your business optimize the marketing offers for each customer.
To calculate the CLV, use the below formula:
Average monthly or annual profit of customer Z × average number (of months or years) they continue to be customers- initial cost of acquisition
3. Cost Per Lead:
The ideal goal is to bring more leads with less cost- “the lower the cost, the better“. The term lead means the individual who showed interest in your company. More leads with lower costs indicate that the marketing strategy you are following is doing some real work.
You can always measure the CPL by installing CRM software. It assists you in the process of tracking and makes sure to narrow down the targeted demographics as much as possible.
4. Organic Traffic:
Driving organic traffic to your website might be a hassle: especially because nowadays, almost every business has an online presence in one way or another. Yet, some good content full of industry-related keywords (SEO) can help you in achieving the goal.
Also, Google Search Console displays the total impressions and the clicks that you received organically, which can give you an estimate about your brands’ visibility. You can increase the chances of your visibility by having a look at the Organic Research tool in SEMrush to know which keyword helped you increase your visibility and which one did not.
5. Customer Loyalty:
Always remember that attracting already existing customers can be cheaper than targeting new ones. If the company has a remarkable degree of customer retention, then it is an indication that what the company is offering is of quality. The best-case scenario is to have a notable customer purchase and loyalty, with minimum to almost non-existing customer attrition.
6. Brand Awareness:
This metric is also considered to be a critical one that needs your attention. Always try to measure the familiarity of your brand.
For instance, whenever you see the golden arches, the first thing that pops in your mind is McDonald’s. This means that the company did an impressive job in branding itself across the globe.
Track your brand mentions online and make sure you choose the right platform to advertise on. In addition to that, utilize the built-in insights as well as other analytical tools to have a clearer picture of your online marketing activity.
Good brand awareness with a successful online marketing strategy can help your business in converting many viewers into potential candidates. Thus, it is essential that you correctly utilize the analytics provided online to assess growth and maximize engagement.
7. Conversion Rate:
Conversion rate is when people visit your website to complete a specific goal. For your marketing campaign to succeed, you are expected to have high rates of conversion. Your conversion rate tells a lot about your online presence. For instance, if you have a user-friendly website that is easy to navigate, you should expect high conversion rates.
The conversion rate can be calculated as follows:
Conversion rate= (Conversion/total visitors) *100%
Assuming your website had 400,000 visitors and 8,000 conversions, then by using the above-mentioned formula, your conversion rate is 2%
Always quantify your data, which in turn will facilitate the process of evaluation. Moreover, always remember that opportunity size matters so that you save your valuable resources on valuable opportunities.
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