The following 15 KPIs will help you improve your marketing

The other day, as I was cooking steak, I had to check to see if it was fully cooked by using a meat thermometer.

To put it another way, I needed to find a sign to determine how the cooking process was progressing.

Marketing is similar in many ways.

To gauge success as a marketer, employ key performance indicators (KPI) rather than a meat thermometer.

Let's learn more about KPIs and look at a few marketing KPI examples that will help you enhance your marketing in the sections below.

What is a KPI?

A key performance indicator, or KPI, assesses how well your business is doing in relation to accomplishing a particular aim or purpose. KPIs exist for every facet of business, including financial, marketing, sales, and operational aspects.

KPIs are essentially quantifiable measurements used to track overall performance. Making unique dashboards in your automation software is a terrific method to examine and report on your KPIs.

Having established what a KPI is, let's examine some examples.

We'll concentrate on marketing KPIs in this article, but if you're interested in learning more about sales analytics, check out our comprehensive guide.

KPI Examples

1.??? Customer Acquisition Cost (CAC)

2.????Lifetime Value of a Customer (LTV)

3.????Return on Investment (ROI)

4.????Return on Ad Spend (ROAS)

5.????Marketing Qualified Leads (MQL)

6.??? Sales Qualified Leads (SQL)

7.????Follower Growth

8.????Conversion Rate

9.????Website Visitors

10.?? Social Media Engagement

11.?? Referral Traffic

12.?? Net Promoter Score (NPS)

13.?? Organic Traffic

14.??Event Attendance

15.??Customer Retention

1. Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) quantifies the expense involved in turning a lead into a paying customer.

Because it enables you to make crucial budgetary decisions, this metric can be used to enhance your marketing.

For instance, if obtaining a customer won't generate a profit, you don't want to spend too much money on it. In essence, this aids businesses in determining how much money to invest in luring clients.

2. Lifetime Value of a Customer (LTV)

Another metric that can help determine how much money to spend on marketing is the?lifetime value of a customer. This metric indicates the total amount of revenue a business can expect to make from a single customer.

This is a useful metric to compare to CAC. For example, if your CAC is higher than your LTV, then you're probably spending too much money acquiring your customers.

3. Return on Investment (ROI)

The amount of money you make in relation to the expense of marketing is referred to as return on investment in marketing.

The return on your investment is determined by deducting marketing costs from sales growth and dividing the result by marketing costs.

In marketing, keep in mind that it can be challenging to pinpoint a specific marketing campaign for a rise in sales. If that is the case, you can divide your sales growth by your marketing cost after deducting your average organic sales growth.

4. Return on Ad Spend (ROAS)

Return on ad spend?is a more specific KPI that you can use to determine the success of your ad campaigns.

This metric measures the revenue that's generated compared to every dollar you spend on an advertising campaign. It's usually a ratio.

For example, let's say you made $10 for every $1 spent on an advertising campaign. That means your ROAS for that campaign is 10:1.

5. Marketing Qualified Leads (MQL)

An MQL is a lead who has interacted with your business and may develop into a more significant prospect if you maintain that connection.

This is an excellent KPI to track because it gives your marketing team insight into the volume of leads they are generating.

Your marketing team can track how many marketing qualified leads (MQLs) turn into sales qualified leads (SQLs), and ultimately, customers (see below).

6. Sales Qualified Leads (SQL)

A sales qualified lead will eventually develop from a MQL if it is properly nurtured. A prospective customer who is prepared to speak with a member of your sales team is known as a SQL.

These leads have typically been investigated and approved by your marketing division.

Once more, this KPI is beneficial as it can assist your marketing team in understanding how many of their leads are speaking with your sales team.

7. Follower Growth

One of your responsibilities as a marketer may be to oversee the social media presence of your business. A useful KPI to monitor if you are on the social media team is follower growth.

Your social media team's main objective, most likely, is to engage your audience and raise brand awareness. A fantastic approach to gauge your progress toward those objectives is by growing your following.

You might think about launching sponsored campaigns to expand your following. During the 4 days that one brand ran a series of sponsored posts on Instagram, it gained 36X the usual amount of followers daily, bringing its total number of followers up by 18.15%.

8. Conversion Rate

The percentage of visitors who carry out a desired activity is known as the conversion rate. Anything from submitting an online form to signing up for a service or making a purchase could be the intended action.

This KPI is useful to monitor because it can inform you of your success in generating leads.

For instance, tracking your conversion rate could show you that few leads are being converted from your website if the desired action was to fill out a web form. If so, you might want to start reevaluating your approach.

9. Website Visitors

The basic objective of a marketer is to draw customers to their business. Getting website visits is a wonderful approach to achieve this.

An essential KPI is website traffic because it can be used to measure the effectiveness of various campaigns.

For instance, if you monitor organic web traffic, you can assess how well your SEO staff is performing.

However, if you are monitoring web traffic from social media, you can use web traffic to determine how many referrals your social team sends to your website.

10. Social Media Engagement

Not to reiterate, but a major role in marketing is social media. One of the main KPIs for social media is engagement.

You could track likes, shares, comments, messages, tags, or mentions. Any way that a customer or lead is interacting with you, you can count as engagement.

Measuring engagement can help you analyze the success of your social media posts.

11. Referral Traffic

Referral traffic is a KPI that can help you understand where your web visitors are coming from.

This is a great KPI to track because it helps you understand how most people find your company. This could be useful information when building your overall marketing strategy.

12. Net Promoter Score (NPS)

Customer satisfaction can be measured using the Net Promoter Score. This KPI gauges the likelihood that customers will tell a friend about your company.

You'll likely give more room for comments when calculating your NPS. This measure can provide you with candid, useful feedback and client insights.

It's critical for marketers to pay close attention to and fully comprehend their target audiences. You can do that with the aid of this KPI.

13. Organic Traffic

It's important to measure the success of your SEO efforts. To do that, you'll likely track the KPI of organic traffic and keyword performance.

With an SEO tool, you can see how well your company is ranking on search engines for certain keywords.

This KPI will inform your overall organic and SEO strategy.

14. Event Attendance

As a marketer, you'll have KPIs for every campaign you're operating.

If you're running an event, for example, then you'll most likely track event attendance. This KPI will let you know how well your marketing team did at attracting people to your event.

15. Customer Retention

Customer retention may not seem like a marketing KPI, but it is one that should be taken into account.

Because you can use the data in your messaging for your marketing activities, customer retention is a wonderful KPI for marketers to monitor.

In order to better market to your clients, this metric also helps you understand them better.

KPIs are crucial since they allow you to assess your progress as a marketer. Since you'll need to monitor the success of both short-term and long-term campaigns, KPIs will be used in almost every situation.

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