Have you been doing some marketing for your business for a while and are still confused about what marketing KPIs to watch out for?
The biggest thing about marketing is to hit a certain goal or marketing target that agrees generally with a company or business objective.
Some years back when I first started doing business, I was just focused on putting my products out there in the best possible ways I can, just to make sure more and more people got wind of what products I offer and come to patronize me.
I never really understood marketing as I do now, and it is painful to see that I left a lot of money on the table with a bunch of other stuff undone.
What do you focus on when running your marketing campaign?
How do you measure or determine if your marketing campaign is successful?
You may already know about marketing Key Performance Indicators (KPIs), but are you focusing on the right indicators?
What Are Marketing KPIs
A Key Performance Indicator is a measurable metric or value that shows you that your task or project is successful.
A Marketing KPI is an easily measurable value that shows marketing effectiveness while the marketing campaign is still running, and demonstrates that a marketing campaign is successful at the end of the campaign.
There are tons of reasons why people engage in marketing.
It could be to increase sales, to drive traffic to a website or social media page (thereby increasing brand awareness on social media), or even to maintain a share they already have in the minds of their audience.
Once you have successfully found out why you are powering the campaign, you can confidently know what Key Performance Indicators to look out for.
Why is Marketing KPI So Important?
How effective would your new found knowledge be when you don’t even know why you acquired them in the first place?
The importance of KPIs in marketing cannot be over-emphasized. Let’s take a few lines and state a few.
- KPI helps you to clearly define what your marketing goals and objectives are.
- It helps you to determine how to achieve those goals in the cheapest and most effective ways possible
- How about your marketing target or objective? It helps you to find out if your efforts paid off positively.
- If you hit your targets, KPIs help you to go stronger in your next campaign and achieve better results in your next outing.
While you have the above reasons why KPIs are important in mind, let’s find out some of those most important KPIs you should not neglect.
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The 6 Most Important Marketing KPIs You Should Not Neglect
There are obviously tons of performance indicators that relate to marketing. You are probably aware of most of them but, in this article, we would help you take a different look at those indicators again from a different angle and also open you up to some KPIs you may have not considered.
1. Return on Ad Spend (ROAS)
How do you know what revenue you generated from an advertising campaign? ROAS!
At the very basic level, your ROAS helps you measure how effective or productive your advertising effort is. To earn more, you should always seek to make your message connect more with your audience.
This is a very direct KPI.
The success of your campaign has a very deep connection with how well you understand your target audience and how you are able to connect with them, either with your sales copy, landing page or sales funnel, or even the general message.
For instance, let’s say you ran an ad campaign on Facebook to sell a weight loss product and made $24 for every $2 in the campaign. With those figures, it now means that your ROAS is 12:1.
There is no general figure determining what a high ROAS is because it can vary from goals to goals and from industry to industry.
However, a ROAS of $4:$1 can be considered good.
2. Conversion Rate
Your Conversion Rate is the percentage of visitors who complete the desired action you intended for them to complete.
The desired action could be anything from downloading a free eBook to successfully buying a product (without abandoning any cart, of course).
This is also true for E-commerce conversion rates as well.
Some time ago, I had a lead magnet I wanted to grow my email list with. The conversion rate in that regard was the number of people who gave their email address to receive the free lead magnet I was offering.
Let’s say I got 200 visits and 50 downloads, what it means is that I got a 25% conversion rate.
Largely, any conversion rate above 10% can be considered amazing.
There are key factors that affect conversion rate and so when you are hitting a low conversion rate, you should take a closer look at your entire sales funnel.
3. Customer Acquisition Cost (CAC)
How much does it take you to convert a lead into a customer?
Your Customer Acquisition Cost is the amount of money it costs you to convert a potential lead into a raving customer.
If your marketing objective is solely aimed at sales, then you should pay even more attention to this metric because it would help you to either adjust your current campaign or to ensure that you employ the best practices to acquire the most customers in the cheapest ways possible in your next campaign.
Let us look at an example that will help us explain this often neglected KPI in a better way.
Let us imagine that you spent $100,000 on marketing in a month to gain 10 new customers, it means that your customer acquisition cost is $10,000.
There could be other factors affecting your CAC but whatever it may be, always seek to gain more customers in the cheapest, and most efficient way possible.
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4. Customer Retention
We often consider customer acquisition so important that we neglect to retain the customers we have already acquired.
Customer retention is always going to be less expensive than customer acquisition.
It is a very great KPI for marketers to seriously track because this is one important information you need while messaging your customers.
When you have retention in mind, you would do everything to make sure you remain top-of-mind.
For your business, when announcing new products or bonuses, email marketing, advertising, and even a new ad campaigns can be tailored to your existing customers.
5. Marketing Qualified Leads
This describes those leads that have engaged with your company and has the potential of becoming a serious customer in the future when nurtured well.
Maybe they do not want to buy your products now for a few reasons, but they have indicated interest in what you have to offer.
The moment a lead has met all the criteria set out by your marketing team and is considered a qualified lead, it can therefore be accepted as a marketing qualified lead and transferred to your sales team for follow-up.
This lead qualification depends on what tasks the prospect has completed like: what web pages have the lead visited, what the lead has downloaded or even the engagement he/she has had with your brand’s content.
As you monitor and reach out to leads that completed a purchase, do not neglect those who didn’t complete a purchase (like people who abandon carts). You could be leaving so much money on the table!
6. Landing Page Conversion Rate
So, it is not about how beautifully designed your landing page is but about how well the landing page is converting leads.
A landing page is useless if it doesn’t convert leads!
Since this is usually the first REAL contact your leads have with your brand, it is very important to monitor its conversion rate. If your ad is great and is generating a high volume of traffic, then the next is to make sure that it also has a high conversion rate.
There are a lot of factors that influence a landing page’s conversion rate and those factors should be considered in context. Some of those factors include your sales copy, your offer, your call-to-action, social proof, or even your forms.
It is of great importance to employ the services of a professional copywriter (if you cannot write sales-driving copies yourself).
Copywriters understand human psychology and what makes people buy what they buy. It would do you no harm to outsource your copies to people who have proven results with writing copies or constructive efficient landing pages.
Whatever be your marketing goal, neglecting these important Marketing KPIs or not understanding them in full could be the reason why your campaign is not performing optimally.
KPIs like landing page conversion and customer retention hurts a business so badly but yet, they are the ones grossly ignored.
Take a second look at your current marketing campaign to be sure that enough attention has been paid to the due sections of your marketing campaign that points to your marketing objective.