Marketing KPI or key performance indicator is a measurable value that indicates the progress in reaching a business target. KPIs help in measuring marketing effectiveness at the end of a campaign. KPIs are slightly different from regular marketing metrics. KPIs are tied to progress. They are capable of showing performance related to specific projects and campaigns. Marketing metrics should be consistently tracked to understand the status of marketing campaigns.
During the tracking of marketing KPIs, marketers generally pay attention to –
But there are other important metrics that a marketer should be tracking to run a successful marketing strategy. No marketer wants to take such a marketing strategy in which the company loses a huge amount of money. By tracking the right marketing KPIs, the company can make the right adjustments to various strategies and budgets. Today, in this article, CloudVandana discusses 5 such important marketing KPIs that marketers should track.
- Customer Acquisition Cost
- Marketing Revenue Attribution
- Digital Marketing ROI
- Traffic To Lead And Lead To Customer Ratio
- Landing Page conversion rate
1. Customer Acquisition Cost(CAC)
Customer acquisition cost is calculated by all program and marketing costs, salaries, commissions, technology, software, and other overhead expenses associated with a lead becoming a customer. While calculating this metric, marketers need to determine the time frame in which the marketer is going to evaluate the cost. Calculating CAC for digital marketing includes manpower (sales, creative, and technical), technology, and general overhead. Calculating CAC for outbound marketing includes advertising, marketing distribution, manpower, and general overhead. By calculating the associated costs for digital and outbound marketing campaigns, marketers can directly account for new sales as well as allocate particular budgets for each campaign. Marketers can break down the component by campaign types, then assess how successful and profitable each activity is. Marketers can start implementing activities to improve over time.
Sometimes, marketers can improve the customer acquisition costs by spending a little more time on activities that can optimize the conversion rate. In addition, marketers should always check the mobile optimization of a website.
2. Marketing Revenue Attribution
Marketing revenue attribution refers to the revenue generated by different forms of marketing. This is something that marketers can track, and attribute to all of the marketing efforts. There are various models to track revenue attribution. Marketing revenue attribution refers to the number of leads the marketer generated to how much revenue was influenced by the marketing efforts. Tracking this information is a great way for the team to show the value of its efforts.
3. Digital Marketing ROI
Every company wants a higher return on its investment. Calculating the digital marketing return on investment is crucial in assessing the monthly and annual performance. Marketers don’t want to continue increasing the budget for marketing activity. So no matter what marketing activity the company is using, the return on investment will determine the future of the campaign.
4. Traffic To Lead And Lead To Customer Ratio
Understanding website traffic is very important for marketers. They should know the source of the traffic, like if it is organic, direct, social media, or referrals. If the traffic is steady but the lead ratio is low or decreasing, that is a sign that something is missing on the page. Marketers need to optimize the website content and identify the pages with higher bounce rates. This information will help the marketer to identify the pages to be optimized first. Regular tracking can help to change the website page copy, design, CTA, OR even the attached form.
Similarly, it is important to know how many leads are transforming into customers. So conversion rate is an important metric to calculate the campaign performance.
Another strategy for increasing conversion of the lead to customer ratio is utilizing assignment selling. Assignment selling indicates using content to educate prospects to close deals faster.
5. Landing Page Conversion Rate
A marketer should monitor the conversion rate of a landing page frequently. A landing page that does not generate leads is useless no matter how much traffic it gets or how beautifully it is designed. If a landing page is getting a lot of traffic but a lower conversion rate, that means the marketer needs to change something on the page. It might be the CTA button or the detailed product discussion. A/B testing is an effective way to check the conversion rate.
Digital Marketing Manager at Cloudvandana Solutions