10 essential KPIs to track in 2023 to improve your marketing
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How are KPIs used to measure performance in marketing?
Before we talk about how to use KPIs (key performance indicators) to measure and track performance in marketing campaigns, it’s essential to understand the brand’s business goals and objectives.?
You cannot measure progress if you don’t know what progress looks like. Or what success means for your business.?
So, if you are the leader of your team, share the brand’s business goals for 2023 with your team. The business goals could focus on revenue (increase sales), employees (reduce employee turnover), profit (increase profit margin), market (increase market share) or whatever is important to your business.
Once everyone in your team is aware of the business goals they need to achieve, you can move on to the next step: establishing marketing goals.
Here are some of the common marketing goals:?
Marketing goals should link to business goals
If your business goal is to increase revenue, what marketing campaigns your team needs to create and run in order to achieve it?
You could consider implementing several marketing campaigns. For example, a marketing campaign targeted at new customers or a marketing campaign targeted at your current customers with the goal of upscaling. What would you like them to do: buy more in quantity or buy products that are more expensive??
The KPIs tied to this particular marketing campaign could be 20% new leads generated or 20% customer conversion rate.
Looking to generate more revenue using digital marketing?
10 essential KPIs you should be tracking in 2023 to improve your marketing results
In 2023, let’s measure what really counts for your business.
The following KPIs are a selection that should help you get an overview of your marketing efforts, where you are doing great, where it could improve and if your company is losing business, give you a clue of the reasons.
The email forward rate is one of the most important KPIs if you are looking to grow a community for the brand.
Opening the email and clicking on the content links inside is one thing, but making your message so relevant to your subscribers that they forward it to someone else is a great achievement.
2. Newsletter signup conversion rate
How many people did your email subscribing campaign convert?
This KPI shows how well you were able to find a match between the brand’s offering and their interests, to speak to their values and show them your solution to their pain points.?
3. New leads generated
Generating new leads is paramount for every brand. You need to constantly show your products or services to new leads gently nudging them to the next step in your marketing and sales funnel.
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Check this for ideas: 5 fast ways to generate leads on your website.
4. Customer lifetime value
Customer lifetime value is the total revenue you can expect from a customer during the period that they remain a customer. Or simply put: how much are they worth to your brand?
For example, Amazon Prime members are worth twice as much as non-Prime shoppers. Prime shoppers spend $1,340 annually, more than twice as much as non-Prime shoppers, who spend $650 annually.?
5. Returning website visitors
Having a good amount of website traffic is necessary if you want to run ads, show up in organic search results and gain email subscribers. Your website is owned media, it’s where you control the content - your brand is not at the mercy of any social media algorithms.
It’s important to measure the number of new visitors your website gets every month. But equally important is to track how many visitors return to your site. Returning visitors tell you that your website is a relevant and valuable resource for them. It’s how your brand stays top of mind. It’s also easier to convert returning visitors to leads and then customers.
Learn more: 3 strategies to increase website traffic.
6. Customer acquisition cost (CAC)
Do you know how much it costs your company to acquire a new customer? As a business person and a leader, it’s one of the most important numbers you should be aware of.
This KPI can be calculated by dividing all costs spent on acquiring new customers (advertising spend, the marketing and sales department salary costs) by the number of customers. Now that you know what your company’s CAC is, if it’s too high, you can start looking for ways to lower it.?
7. Landing page conversion rates
Your team has designed a beautiful landing page for your company’s latest offering of products or services. And you are running a campaign to send leads to that landing page with the goal of converting them to customers. The landing page conversion rate KPI shows the performance of the landing page. If the page has a poor conversion rate, analyze it to see if the graphics and the copy can be improved.
8. Traffic-to-lead ratio
This KPI tells you how many of your website visitors convert to leads. First, you need to establish what exactly means a lead for your brand.
What do you want your website visitor to do? Depending on what your company offers through its website, it could be anything from a newsletter subscribing, downloading a PDF paper, answering a survey or registering for a 7-day free product subscription.
If this ratio is unsatisfactory, one of the main questions you should ask yourself is 'Are you attracting the right people to your website?'
9. Lead-to-customer ratio
Now that you have established the traffic-to-lead ratio, the next step is to establish the lead-to-customer ratio. From the total number of leads, how many convert into paying customers?
How many push the Buy button? What are you doing to convince them to become customers? Are your leads qualified? A qualified lead is someone who could become a potential customer to you, based on criteria and identifying information that they have freely provided.
10. Content downloads rate
Downloadable content is usually hosted on a landing page as a lead magnet. It helps marketers establish if the content is relevant to the page visitors and if the copy is effective. The visitor who downloaded the content is now a lead and the brand can begin a conversation which would eventually result in a sale.
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