Marketing KPIs every Marketer should care aboutMarketing KPIs tell you how you are doing. Every organisation who has invested in marketing does it with different intent and goals. Depending on the deliverables, you will have to choose which KPIs are more important to you.
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Marketing KPIs Explained
Sales revenueA higher Top line growth is always a sign of a good business. Sales driven businesses know the value of a healthy flow of Sales Revenue. While Marketing doesn't initially have a direct impact on the Sales Revenue, but it does affect. In fact, in some marketing cases, it takes months to see the marketing efforts tuning into actual money in the bank. With current technological advancement like google analytics, it is much easier to trace the source of a customer's influential source. More on Using UTM parameters to track your online marketing efforts, click here
Cost per LeadThe money you spend on acquiring a prospecting customer lead. Keep in mind this is the money you've spend to get the user to your doorstep. The user has not yet purchased anything from you. The Sales funnel is not complete yet. When Marketing it is easy to buy more Facebook ads, hire more influencers, Record more videos. What's difficult is to budget them and spend as less money as possible. Keeping in the eye on Cost per Lead will show you how much you have spent to get a customer aware of your offering.
Customer valueThe lifetime value of a customer varies from millions to 100s of dollars. This is completely depended on the product you offer and the perceived value in the eyes of the customer. Customer Value of a Lexus Sedan customer will be much higher than that of a Toyota Sedan. But The companies offer the same product but to different customers with different sets of needs. Both companies have different customer value and will be spending a different amount of budget on marketing. if the KPI Cost Per Lead shows you how much you are spending on a lead, the KPI Customer Value will show you how much you should be spending on a lead.
Inbound Marketing ROIQuick Definition: When you get traffic from by creating content and curating them on multiple platforms online like Videos on Youtube and Facebook, Infographic on Instagram and LinkedIn, Audio in form of Podcasts, or even blogs which are written on your website, are Inbound Marketing. How do you Measure Inbound Marketing ROI? Track traffic through UTM parameters. Observe where you get Most of your traffic from, and which platform needs improvement.
Traffic to Lead RatioThe majority of your website visitors will never buy from you. There will be some small percentage of visitors who will buy from you, and this can be big or small depending on the product/service you offer, and the level of attractiveness your website is built with. by Monitoring the Traffic to lead Ratio, you can determine how much traffic will be needed to complete your goals such as, Reach, Revenue or Traffic goals.
Lead to Customer RatioEvery salesperson knows this, every visitor can be your customer, but some people will never buy from you. It's human nature see all other options before making a purchase. It's something for the products and services of all ranges. Your Lead to customer Marketing KPIs will tell you how accurate your marketing is. The higher the number, the better you are at attracting the people, for whom your product/service was made for.
Sales Team Response TimeIn traditional marketing, your marketing team would bring Customers to the door and the Sales reps would pick up each customer and cater to them and sell your product/service. This is partially true for modern businesses. especially if your product is online. Here most of your marketing efforts will be online and point at which your sales team would come in would be depended on the methodology marketing and sales you opted. In all cases, there will be void of space between your marketing efforts getting customers on your landing page, and the customer purchasing from you. This void should not have many customers at any given time. Typically a sales team would sweep in, cater to these warm leads and make sure customer is served based on their need.
MQL to SQL RatioMQL: Marketing Qualified Leads
Traffic generated by your marketing efforts to your shop or website may or may not be interested in your product/service. But the traffic you get after this marketing stage is called as MQLSQL: Sales Qualified Leads
Customer who are ready to purchase from you. Note: Customer in this category are mostly filtered from your MQL crowd. And this also includes leads generated by your sales team solo efforts.The idea is to keep this ratio close to 1. This can be achieved by making sure your marketing efforts are targeted towards people who are most likely to buy from you. Using social media this is easier to achieve, compared to previous methods of on-road marketing.
Website trafficWebsite traffic can be a vanity metric. But it does form the foundation for all the other metrics you want to follow. Also, it is worth noting the number of people visiting your website definitely matters, but the number of users on your website is a much higher value metric. To check the quality of users on your website, first, define the type of users your product/service caters suitable to. And follow this by creating content these bunch of users will love to read/watch. BONUS If you have enables google analytics, you go to Audience > Interest and find three categories of user.
- Affinity users
- In-Market Segment
- Other Catagories