At the end of the campaign day, week, period, you want to know if your marketing campaign did well or not. In any aspect of life, you need a dipstick to see what went well or got bad.
Key performance indicator (KPI) is a numerical measurement that shows the success factors of a business or project. It used to measure the performance of specific aspects to meet the company’s goals and objectives.
In measuring KPIs you do not only just identify how well you do and whether if there is any room for improvement but also you get to set perfect realistic goals and objectives for your business.
While measuring their performance KPIs, Some companies realize that their initial goals are not realistic and they are not able to handle them. For example, a company could figure out that their website server is unable to fully handle all of the traffic and demand from a potential spike.
In marketing, there are several KPIs you need to measure to guage the goal of the success of your marketing campaign. Here we will list the most important KPIs every business need to pay attention to every detail of it.
1) Cost per lead
Understand how much every single lead costs you.
Someone interested in your business also known as a prospect. Leads are gathered for purposes such as building lists, newsletters lists, and converting them into buyers.
Cost per Lead measures the effectiveness of your marketing campaign by dividing the cost for each lead generation on the total of leads your marketing campaign generated.
By measuring cost per lead KPI you can know which campaign is the most effective in generating lead and which need optimizations and improvements.
Cost per lead also very related to return on investment (ROI).
Most importantly, cost per lead used to monitor marketing campaigns, for instance, email marketing campaigns.
2) Sales revenue
The best way for knowing how good you did generally is by calculating sales revenue. Understanding the sales revenue is important to know the effectiveness of your marketing performance and how impacted your growth. By knowing exactly which marketing campaign generated most sales revenue is vital for your business.
3) Conversion rate
Being able to know exactly what is the effect of your marketing campaign on customers is important.
How people react to your marketing campaign? Did it make them buy your product? How many customers had an interest in visiting your website after a particular campaign?
Conversation rate means the number of visitors to a website that converts or do the desired goal out of the total number of visitors.
Measuring conversion during each marketing campaign is essential for the growth and improvements of your campaign. To know the perspective of potential customers is gold for marketers.
4) Social media engagementc
Many businesses have doubted the power of social media on marketing. Social media engagement is so powerful yet, doesn’t cost that much money.
For many years, social media proved the huge positive impact of every marketing campaign. Measuring social media KPI is by measuring the growth in your followers and likes and how many lead conversions per each social media channel.
Social media sites like Twitter and Facebook provide a native analytical tool to help you track your growth - so use it wisely.
5) Organic traffic
Everyone wants their most traffic to come from organic search. What is better than people finding your website on their own? without high costs and if they find it means that they need it.
Organic search means the traffic that comes to your website through a search engine.
Marketers measure organic traffic to identify areas of improvement to improve SEO (search engine optimization). Your SEO strategy what defines your organic search so always make sure to manage and monitor the numbers.
Measuring SEO traffic is mostly done by using google analytics.
6) Customers Lifetime Value (LTV)
Measuring customer lifetime value is to measure how valuable a customer to your company.
By calculating this KPI is to know who you can focus on and how to treat your most valuable customers and the fact that focusing on your current customers costs a little compare to acquiring a new one.
knowing CLV is important to your future growth and understanding the customers more.
After you generate leads you want to know if they are qualified and they are ideal for the sales follow-up or not.
Marketing qualified leads are the leads who are more likely to become customers more than other leads.
It is important to know how effective you are in converting leads into customers and compare the rate along the way.
We discussed the most common marketing KPIs, but these are not the only KPIs, they are too many KPIs for marketing to measure and track, you have just to choose the right KPIs for your business and industry.