03 May K is for… Marketing KPIs
Your A-Z of Marketing Essentials K is for… Marketing KPIs
KPIs, or Key performance Indicators in Marketing are specific, numerical marketing metrics that businesses should use to track and measure their progress towards reaching a defined goal within their marketing channels and tools.
By tracking the right marketing KPIs you will be able to make educated adjustments to the various strategies, tools and budgets and make your marketing spend more effective.
But, what are the right marketing KPIs? And, what should you measure?
Understanding which of your marketing tactics are working and which ones aren’t is an essential way of measuring your business growth success and where you should spend your money.
Marketing tactics that aren’t performing and are not bringing you closer together to your overall business goals should be dropped, and marketing tactics that are working and driving new leads based on your preferred buyer persona, can be scaled up.
What marketing KPI’s should you be measuring and how often?
This is a question we often get asked and to be honest, there is no straight text book answer as it depends on what you are hoping to achieve, but we’ve listed a few essential marketing KPIs you should start monitoring today if you aren’t doing so already.
It is also worth consider the measurement of customer sentiment. Understanding what & how your product or service makes people feel will help you understand your customers as real people (not just statistics) so you can adapt your messaging or visuals accordingly.
10 Main marketing KPIs:
- Sales / Revenue
- Qualified Leads
- Conversion rates
- LTV – Lifetime value
- CPA – Cost per acquisition
- Customer retention / lifespan
- ROI – Return on investment
- Website traffic
- Online form completions eg. downloads / contact us
- Customer sentiment
This formula can be used for each tactic that is used to understand how effective a marketing tool is.
- Total number eg. Website traffic
- Traffic to lead %
- Lead to prospect %
- Prospect to meeting/quote/proposal %
- Quotes to Sale %
This can also be used for:
- Email marketing
- Direct mail
- PPC traffic
- Event / webinar attendance
Socially you’d want to look at measuring
- Social reach
- Social engagement
When it comes to how often you should monitor these, that again depends on what you want to achieve. If it is something that needs achieving in a relatively short time frame then everyday would be appropriate, however if your goal is over the course of a quarter or year, then weekly, monthly and quarterly would be appropriate.
There are a whole host of other metrics in Google Analytics such as devices people are using, browsers, exit pages etc. that will give you a bigger picture of who and how people are using your website.
Michelle Roberts (MCIM), is the managing director and founder of The Creative Marketing Agency. She is trained in both digital and traditional marketing through the Chartered Institute of Marketing (CIM). She is also a member of the CIM and a Certified Practitioner in the Watertight Marketing Expert Community, both of which provide access to an additional wealth of knowledge and experience.