Many marketers and business owners concentrate solely on the usual suspects when establishing and monitoring marketing key performance indicators (KPIs):
– Sales income
– The quantity of leads that are qualified for sales
– Cost per acquisition
There are a lot of additional marketing KPIs that will assist your firm lead a more effective digital marketing strategy, despite the fact that many people believe these basic KPIs to be the best measures of success.
You may determine which campaigns and methods have the most influence on whether you succeed in reaching your sales and marketing objectives by using the appropriate marketing KPIs.
Nobody wants to continue funding a marketing campaign that is costing their business money. Your business will be able to make the appropriate modifications to various strategies and budgets by monitoring the appropriate marketing KPIs.
However, without the appropriate ones, your business may be reporting and making choices based on insufficient data.
But it might be difficult to know where to begin when there are so many potential marketing KPIs to monitor.
Thanks to our Business Experience Transformation (BXT) framework, Kilowott has shown hundreds of companies how to create world-class content marketing programs; many of these companies have gone on to become true inbound marketing success stories.
We’ve distilled our list down to the top 10 marketing KPIs that we instruct our clients to monitor. These KPIs serve as the ideal yardsticks for measuring your accomplishments and progress. This page will clarify:
– Which marketing KPIs you should track?
– What are KPIs for customer experience?
– What are the 5 Key Performance Indicators?
– What are common KPIs for marketing?
– What are the most useful metrics for determining great customer experience?
– Why should you track them?
– Methods you can use to track these key performance indicators
This way, you’ll know exactly which metrics you should pay attention to that will help you grow your business.
1. Marketing revenue attribution
How much money did your business make from its digital marketing campaigns? How much of your revenue, in other words, can be directly linked to your content marketing activities?
Knowing this number is crucial since it enables you to assess the efficacy of such initiatives. No business wants to invest money in something that won’t yield a profit (ROI).
According to Marcus Sheridan, author of They Ask, You Answer, only content that results in sales is effective. Because of this, revenue attribution is ranked first among all marketing KPIs.
You may use this to monitor and assess each of your efforts, not just the overall sum. You may monitor the effects of the various components of your marketing strategy, such as social media or blogging, on sales.
You can track revenue attribution using a variety of models, such as single-touch attribution models that focus on a user’s first or last interaction with your website.
You can also examine models of multi-touch attribution that distribute deal rewards among many touchpoints.
With marketing revenue attribution, you may determine how much of your revenue is influenced by your marketing activities by going beyond the number of quality leads you close.
Your team may demonstrate the financial benefit of their work by keeping track of this data.
Revenue attribution is a terrific approach to demonstrate how your whole company’s efforts have contributed to closing business if everyone in it works to generate content marketing pieces.
This encourages your stakeholders to keep supporting your content marketing programme.
2. Customer acquisition cost
Client acquisition cost (CAC) examines the overall amount spent on sales and marketing to acquire a new customer.
This covers all expenses related to running programmes and marketing campaigns, as well as wages, commissions, technology, software, and any overhead incurred when a lead turns into a client.
You should figure out your CAC for outbound marketing as well as digital marketing. By doing so, you will be able to see how comprehensive your efforts are and which ones are most effective.
You must decide the time period in which you will assess this cost before you can calculate this statistic (e.g., month, quarter, year).
Use the examples below to calculate your overall sales and marketing expenses for digital and outbound marketing once you’ve chosen your time frame.
Relevant expenses when calculating CAC for digital marketing include:
- – Manpower (sales, creative, and technical)
- – Broader overhead
Relevant expenses when calculating CAC for outbound marketing include:
- – Marketing communications distribution
- – Manpower (sales and marketing)
- – Broader overhead
You can calculate your CAC from digital or outbound marketing by utilizing the following calculation:
You may more accurately allocate budgets for each campaign and immediately account for new sales by estimating the costs related to your outbound and digital marketing initiatives.
If your business primarily uses digital marketing, you can analyze each campaign type separately to determine how effective and lucrative each activity is. After that, you can start doing things to gradually increase effectiveness.
Spending a bit more time on tasks that can increase your conversion rates is one method to lower your client acquisition costs.
Adding calls-to-action (CTAs) and links to pertinent material to your website and blog will help website visitors convert to leads more easily.
Make sure the information is as clear as possible and demonstrates your capacity to allay the concerns and ease the suffering of your potential clients.
3. Customer lifetime value
The amount of income a company may expect to earn throughout the typical lifetime of a single customer is known as customer lifetime value.
This is one of the most crucial marketing KPIs because it is expensive to attract new customers. If you can increase income from current customers, your cost per lead will go down and you can utilize your marketing budget to target higher-quality prospects.
The following calculation can be used to estimate your customers’ lifetime value:
Creating lead nurturing efforts that contact current customers and provide you and your sales team the chance to inform them about new services, products, and resources is one method to raise the lifetime value of your clients.
Automated messages frequently come across as impersonal. Think of getting to know your customers like you would a member of your family or a close friend.
If this messaging originates from your company’s outreach team, it might be much more powerful.
Every three months, a small number of clients are individually contacted by the content management team at Kilowott to check in. During this period, we evaluate how satisfied our clients are.
Our team checks in with them to see how they’re doing, looks for any areas where we may improve, and asks them what they think overall about working with us.
4. Digital marketing ROI
Every business desires to see a return on its marketing expenditure.
In order to evaluate your monthly and yearly success, it is essential to calculate your digital marketing return on investment. The capacity to plan budgets and strategies for future planning periods is equally crucial.
You don’t want to keep raising your spending for a useless marketing strategy that is hurting your business.
The next course of action will be determined by your return on investment, regardless of the marketing strategy your business uses.
5. Traffic-to-lead ratio (new contact rate)
Understanding your website traffic, especially where it originates, whether it comes from organic, direct, social media, or referrals, is crucial.
There must be something lacking on the page if your traffic is constant or rising yet your traffic-to-lead ratio is poor or declining.
The largest offender among the many potential ones is the discrepancy between the content people believed they were clicking on and the information they actually saw.
You might also be exposing them to information that they aren’t yet capable of understanding or that didn’t fully address their queries, forcing them to seek out a different source.
Prior to content optimization, it’s critical to determine which pages have the lowest view-to-contact rates and the largest bounce rates.
By arming yourself with this knowledge, you can decide which pages to optimize first.
A heatmap is another tool you would want to think about including in your marketing report, especially for your landing pages and effective blog posts. You can use Lucky Orange and Hotjar as heatmap tools.
Using this data, you can figure out whether users are truly scrolling all the way through your material. If not, think about including more CTAs throughout your article rather than only at the end. Or consider whether you are responding to queries from users.
Monitoring your website’s traffic-to-lead ratio on a regular basis can help you identify when it might be appropriate to modify the copy, design, CTAs, or even the attached form.
6. Lead-to-customer ratio
It’s critical to understand how many leads your sales staff is actually able to close after all of your marketing efforts. You should figure out your sales accepted lead (SAL) and sales qualified lead (SQL) conversion rates.
What’s the difference between the two?
On the basis of their lead score or particular activities and/or triggers they fulfill, SQLs are leads that are deemed to be sales-ready. Most businesses would view a lead who completed a form, such as “contact a rep,” as a possible consumer who is prepared to use your service or purchase your goods.
A lead for a trash management company, for instance, would be regarded as a SQL if they filled out the form to “rent a dumpster.”
SALs are leads that your sales team has either contacted directly or booked a call with because they are considered opportunities.
Notably, there’s a chance that these two categories of leads will cross paths.
Consider the following when you examine your lead-to-customer ratio for sales qualifying and sales accepted leads:
- – Does my marketing produce leads?
- – Does our CRM effectively and timely pass qualifying leads to sales?
- – Do we conclude deals quickly?
If any of these questions have a negative response, consult with your sales team to figure out what is lacking and how you can improve your numbers as a team.
To help the conversation progress, consider the following sales enablement questions:
– What happens during the sales process?
– What attributes qualify a lead as a sales candidate?
– What are the most typical objections raised by leads?
– Assignment selling is a different method for improving your lead-to-customer ratio. The idea of assignment selling is to leverage information to inform prospects in order to close sales more quickly. Whether they choose to work with you or not, your prospects should view your sales team as a helpful resource.
You will close more sales if you adopt a more open-minded perspective and concentrate on serving as a resource for your leads and clients.
7. Landing page conversion rates
Your landing page is now accessible. Although it is lovely and adheres to all the recommended procedures, is it actually converting?
No matter how much traffic it receives or how attractively built it is, a landing page that doesn’t produce leads is pointless, just like any other page with a form on your website. Therefore, keep an eye on your conversion rate.
Similar to your traffic-to-lead ratio, a high traffic landing page with a low conversion rate indicates that you need to make changes to the page.
To determine which of the following adjustments is generating the highest conversion rate, try A/B testing some of them:
- – Change the color of your CTA.
- – Give your CTA wording additional value.
- – Add compelling writing to your writing.
- – Cut the form down.
- – Add social evidence (i.e., reviews, social counts, awards, etc.)
8. Organic traffic and your top 5 entry pages
Any company implementing inbound marketing wants the bulk of the traffic to its website to come from natural search.
High organic traffic indicates that visitors are coming to your website voluntarily by clicking on search engine results. Because you didn’t pay for the traffic, it is quite useful.
It should come as no surprise that your SEO strategy directly affects organic traffic, so be sure to keep an eye on this figure (along with your keywords) and adjust your SEO strategy as necessary.
Each page should have a specific keyword, but you should also check that the content and pages of your website are optimized and truly address the query that your potential customers are posing.
Take a look at the top five pages that are driving traffic to your website. These pages (usually landing pages or blog posts) will be visitors’ initial impressions of your business and website.
Not only should you be aware of these entrance pages, but you also need to periodically check that they are updated and conversion-optimized.
This is especially true if readers of your website could stumble onto articles that were posted more than a year ago.
In addition to generating leads, you should optimize your content to encourage people to read more pages. The longer they read, the more educated they will be, which will probably shorten the time it takes for sales to clinch a deal.
9. Social media traffic and conversion rates
Many customers are hesitant about social media’s role in digital marketing. It’s not always thought of as a technique to get leads or even as a tool for your audience to interact with you. However, we’ve discovered that social media has been crucial to the success of every campaign.
Utilizing social media channels may help you inform your audience, create buzz, and increase recognition and trust. You can use the following metrics to demonstrate the significance and influence of social media on your marketing efforts:
– The quantity of leads that were converted through each social media outlet.
– The quantity of sales earned through each social media platform.
traffic volume attributed to social media sources as a percentage
– Even though you might not have enough time to use every channel—including Twitter, Facebook, LinkedIn, Instagram, Pinterest, and TikTok—you can choose where to concentrate your efforts by analyzing how many leads, clients, and visitors each platform generates.
The level of interaction you’re seeing on social media is a reflection of how well your content and brand resonate with your audience on that platform as well as how much trust you’ve built with them.
This is true even if there are many social media KPIs you can monitor.
10. Mobile traffic, leads, and conversion rates
Is your website mobile-friendly in a practical way?
According to OuterBox, the majority of smartphone users (about 80%) have made an online purchase using their devices in the last six months.
You need to be aware of how your users are accessing your site using their mobile devices given the prevalence of individuals utilizing smartphones and other mobile devices exclusively for web surfing and Google’s preference for mobile-friendly websites.
Keep an eye out for:
– Mobile usage
– The quantity of mobile device lead conversions
– Mobile device bounce rates
– Conversion rates from landing pages optimized for mobile
– You can enhance the user experience and optimize your website to boost mobile conversions by being aware of how and what your visitors are doing on their mobile devices.
Would you like to know more about enhancing your digital marketing approach with improved KPIs?
You shouldn’t check these metrics once and then stop monitoring them.
Every critical performance metric we talked about needs to be monitored on a weekly or monthly basis. You’ll be better able to do your duties and ultimately be able to change course when a marketing effort isn’t successful if you keep track of these metrics on a regular basis.
To help your sales and marketing team understand how well your efforts are performing, you should make these analytics available to everyone in your organization.
The main objectives of marketing are client acquisition and revenue growth for businesses. Your team may achieve this aim by monitoring, analyzing, and improving those metrics.
Schedule a conversation with one of Kilowott’s marketing experts if you need more details or have concerns about which KPIs to monitor. They can walk you through your options.
When you understand the key indicators, you can engage in more in-depth discussions with your sales team, which will help you spot any gaps in your digital marketing strategy and, ultimately, provide the desired outcomes. So, let’s talk then?