8 Important Marketing KPIs For Your Business
8 Important Marketing KPIs For Your Business
Now more than ever, your company should focus on online marketing KPIs. Nowadays, most clients and revenue come from the web. The e-commerce business has grown in recent years. Understanding marketing KPIs is crucial for any e-commerce business. And here are eight important Marketing KPIs for your business.
Table of Contents
1. Leads
“Leads” are potential clients.
Lead generation directly affects sales prospects and revenue. More leads in your marketing funnel mean more sales opportunities.
Companies categorize leads into marketing qualified leads (MQLs) and sales qualified leads (SQLs).
An MQL is more likely than other leads to becoming a client. A SQL is a qualified lead that demands the sales team’s attention. MQL-to-SQL Businesses also monitor ratios. They illustrate how many leads become sales.
2. Cost Per Lead (CPL)
Calculate your CPL to see how well your marketing initiatives produce new sales leads at a low cost. Each lead in your campaign is worth money. You can use this method to evaluate Google AdWords and Facebook’s social media ads. Leads with a large number of viable leads will have a low CPL.
3. Customer Retention
Customer retention measures your company’s capacity to retain them around for the long term. It’s essential to pay attention to this KPI. Where do you lose repeat consumers in the sales process? Where can you save time and money?
4. Cost-per-Customer Acquisition
Numerous factors determine the cost of acquiring a new customer. The cost-per-customer acquisition covers production costs. It also covers less visible back-of-house costs like research and marketing.
When you know how much each new customer costs, you can choose the most cost-effective strategy for your business. The cost of acquiring a new client might help decide your company’s product objectives.
5. Marketing ROI
Return on investment (ROI) measures how much money you earn back from your marketing efforts. ROI is one of the most important indicators to track.
You calculate this by dividing the number of leads your campaign generates by the opportunity value. While ROI is an important marketing KPI, it is not always easy to quantify. Sometimes, someone sees your ad without clicking but then visits your site by typing in your URL.
To read more about the ROI, check out How to Segment your Email List for Better ROI on Marketing Campaigns article.
6. Revenue Attribution and Conversion Rate
The traffic-to-sales ratio shows how many website visits resulted in sales. This ratio shows the company’s marketing efforts were successful. A larger ratio indicates more leads along the sales funnel and more revenue.
Marketing revenue measurement is crucial. The company should also know which medium brought in the most customers. This KPI can help marketers make better judgments. It prevents them from investing in non-profitable channels.
7. Average Time For Conversion
Here is the time it takes for a customer to become a client.
You can use the time it takes for a lead to become a paying customer to assess your sales process. If the conversion time is too long, your prospects may lose interest in your product or service and go to a competitor.
8. Organic Traffic
Organic traffic refers to visitors who arrive at a website via a search engine. It is non-paid traffic that comes from internet searches. This Marketing KPI helps you track the success of your SEO activities. Keyword performance is vital for SEO.
In this situation, the audience is well-defined and has a clear goal. Customers are more likely to buy from a company that meets their needs.
To read more about the Organic Traffic and SEO, check out The Ultimate Keyword Research Guide for SEO article.
