Creating the right marketing strategy is a science. Powerful marketing that reaches the target audience and relays what your brand represents is essential in a competitive market.
Marketing Key Performance Indicators, otherwise known as KPIs, measure the effectiveness of your marketing function, but essential marketing KPI’s are more than just data, marketing KPI’s play an integral role in business, as outlined here.
Every marketing strategy needs to be tracked, but knowing which analytics to focus on when reviewing your marketing KPIs can be challenging. Here I look at the essential marketing KPIs you should track and why.
Conversion rate is a fundamental KPI that must be consistently reviewed and compared to projections and past performance. Conversion rate is key to remaining relevant and competitive in the market. The conversion equation will indicate how successful your marketing strategy is at converting visitors into customers.
Social media is a valuable marketing tool, providing a platform to inform, engage with and entertain your target audience. Metrics to analyse social media’s effect on your marketing include the lead conversion rate per channel, the customer conversion rate and the quantity of traffic the social media channels generate. Social media channels that prove fruitful for marketing include:
The lifetime value of a customer refers to the potential revenue from the average duration of a customer relationship. It costs businesses money to attract new customers, so you must ensure the investment pays off. A simple calculation can establish the lifetime customer value
Customer Lifetime Value (LTV) = Average Sale Total Per Customer x Average Sales Per Year x Average Customer Lifetime
Customers’ lifetime value can be increased with marketing campaigns that inform current customers about new offers, products and services.
CAC (Customer acquisition cost) assesses the cost of marketing to achieve new customers, including:
You should review your CAC for outbound and digital marketing to understand which strategies are paying off. Calculate this metric for a set period like so:
Total Marketing Expenses + Total Sales Expenses / No. of New Customers
Email marketing is a highly effective form of digital marketing. Email marketing campaigns can be tested by trying new templates and styles as your email list grows, lowering the average acquisition cost over time.
MROI (Marketing return on investment) can be a complex metric to obtain, but you must review it to analyse your marketing strategy. MROI is a group of metrics contributing to your marketing strategy, all of which require tracking to provide a clear picture. Examples of these are:
The traffic to lead ratio refers to the number of website visitors converting to leads. Tracking this KPI helps to monitor the quality of the traffic your website is getting and the conversion rate of your website visitors. It will also help determine if the website requires improvement and how to implement that.
This KPI will show you how long a user spends on a particular page, It may surprise you that the average user stays on a page for around 37 seconds, so shorter results are not always an indication of a problem. However, you should always be looking to improve in this area. Readers that engage with the content are more likely to return. Subheadings, lists and pictures can be quickly scanned, so breaking down large chunks of content could significantly improve your time on the page KPI.
Media mentions, particularly positive ones, can considerably affect a business. You can use Google Alerts to inform you of media mentions and keep a note of the type of coverage your company is getting. Marketing campaigns that gain media attention can be golden.
Marketing is crucial for any business – it’s the link between business and customer and how many companies establish their client’s needs. Monitoring essential marketing KPIs allows you to gather relevant information and assess how your marketing strategies are performing. You can then work on weak areas and improve your marketing campaigns accordingly.
Think of KPIs as small cogs in a big machine, and that machine is your marketing strategy. All these small cogs must perform strongly to achieve great results. Tracking the nine mentioned marketing KPIs above will allow you to consistently improve your business marketing.
I'm a marketing consultant with a proven track record in boosting sales and increasing brand exposure. Experienced in working across several sectors, I’ve successfully employed offline and online marketing strategies to drive footfall, generate leads, and deliver sales.Connect with me on LinkedIn