Marketing KPIs are the metrics that marketers use to determine how their company is performing. KPI stands for Key Performance Indicators. Measuring KPIs can help you fix any underlying issues in your marketing strategy & make your business thrive.
In this article, I will tell you some of the most important marketing KPI examples that you MUST measure!
Marketing KPI Examples
- Customer Acquisition Cost
- Lifetime Value of a Customer
- Return on Investment
- Marketing Qualified Leads
- Sales Qualified Leads
- Brand Awareness
- Lead Conversion Rate
- Website Visitors
- Social Media Engagement
- Referral Traffic
- Organic Traffic
I’ve explained these marketing KPI examples in brief. Take a look!
Customer Acquisition Cost (CAC)
Customer Acquisition Cost(CAC) measures the total capital you use to convert a lead into a customer. This metric is very important as it helps you make better budgetary decisions. Once you set your CAC, you can easily determine how many more new customers you want to bring in with your allotted budget.
Lifetime Value of a Customer (LTV)
The Lifetime Value of a Customer(LTV) measures the total revenue a business can possibly generate from a customer.
So if your CAC is greater than your LTV, then you are spending more money on getting new customers & not generating more money.
Return on Investment (ROI)
Return on Investment(ROI) determines the total amount of bucks you make compared to the total marketing cost.
Subtract marketing expenses from sales growth & divide that by marketing cost to calculate your return on investment.
Formula: (Sales Revenue – Marketing Cost)/Marketing Cost = ROI
To determine how effective & valuable your marketing activities are, you need to calculate ROI. You can change or modify your marketing based on the results.
Marketing Qualified Leads (MQL)
When leads engage with your company & become more serious prospects, they are called Marketing Qualified Leads(MQL). Of course, you must build that relationship to take your leads to the next step. With this metric, your marketing team understands how many leads they acquire.
Sales Qualified Leads (SQL)
A Sales Qualified Lead(SQL) is someone who is very close to becoming your customer. When you engage & persuade an MQL, they become your SQL. The SQLs are those prospects who are the closest to becoming your customers.
Understanding the difference between an MQL & SQL is crucial to figure out the proper ways to engage.
Brand Awareness is how people see your brand. Marketers set this KPI to track how their brand is performing over a period of time. Brand Awareness can be measured by social media followers, brand mentions, branded searches, referral traffic, etc.
Lead Conversion Rate
The Conversion Rate is the percentage of leads that convert into your customers. This metric helps you to get an idea of how good you are at converting leads into sales. You can adjust your marketing strategy to increase the conversion rate.
A great way to generate website traffic is by attracting more people to your website. You can track how many people visit your website by the Website Visitors metric. This is a very important KPI to determine the success of your marketing campaigns.
Social Media Engagement
Measuring Social Media Engagement can help you to determine the success of your social media campaigns. An engagement is when a person interacts with your posts by either liking, commenting, or sharing. You can track these data points & figure out ways to boost engagement.
By measuring Referral Traffic, you can find where your website visitors are coming from. This is very important as it lets you know how people find your company.
To measure the success of your SEO, you definitely need to track Organic Traffic along with keyword performance. There are many online SEO tools are available to track your keywords’ performance on the Google search engine.
With this metric, you can carefully plan your SEO strategy & grow your business organically.
I’ve written this article to give you an understanding of some of the top metrics that you should track. The metrics that you track depend on your goals & objectives. Doing so will have a significant impact on your digital marketing efforts.
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