Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively a company is achieving its key business objectives. Businesses use KPIs to evaluate their success at reaching set targets. Just like there are different departments in an organization, there are different KPIs to be tracked. For example, the sales department may track total revenue, new customers, and average deals to gauge progress toward their revenue targets. The human resources department may track employee turnover, employee engagement, and employee transfers.
To conduct a successful marketing campaign, there are several KPIs that should be tracked. However, by tracking the right KPIs, your organization can adjust various strategies and budgets as necessary. By not tracking the right KPIs, your organization could be making decisions based on the deceptive information. Following, are the top seven marketing KPIs, your company should be tracking.
Measuring the growth in sales revenue is the best way to determine your marketing campaign’s success. Measuring your organization’s sales growth is crucial to the long-term success of your company. This not only serves serve as a good indicator for strategic planning, it also allows for identifying growth trends. Sharing the sales revenue with your employees is a great way to reinforce that everyone is on the same team and aiming for the same results.
This is very simple - the more leads you get, the more sales opportunities you have. The more sales opportunities you have, the better chance of sales growth you have. In a marketing or sales department, the importance of leads is akin to the importance of water for plants. It is what drives them and makes them grow.
Using this KPI to measure your organization’s ROI can also help you devise future business goals. There is no better way to gauge customer value than to reach out to your existing customers. This helps you keep in contact with leads, helps reduce churn Not only can doing this help you keep in contact with leads, but it can also help reduce the rate of attrition, keeps your customers happy, and expands the lifetime value of your customers.
Inbound Marketing ROI
To help assess your monthly and annual performance, it is crucial to calculate your inbound marketing investment. The ability to start planning strategies and budgets for the next few months or the following year is just as important. Everyone wants to see a return on their investment. If a marketing strategy is already costing your organization money, you do not want to continue adding money or increasing your budget for that particular marketing activity. Regardless of what marketing campaign strategy your organization is using, your ROI will determine the future of that strategy.
Understanding your website traffic is extremely important – especially knowing where it is coming from. Is it organic? Direct? Social media? Referrals? If website traffic is steady or increasing; however, your traffic-to-lead ratio is low or decreasing, something is missing on the website. Tracking this KPI will help you determine if (and when) you need to make a change on your website.
Marketing campaign efforts require a lot of time, work, and money; therefore, it is important to know how many leads your sales team closes. You need to calculate both your sales qualified lead conversion rate and sales accepted lead conversion rate. By looking at these two rates, you will be able to determine if your organization has a high close rate, if your campaign is capturing leads, and if your CRM is passing qualified leads to sales at the correct time.
Landing Page Conversion Rates
No matter how attractive your landing page is, if it does not generate leads, it is useless. If it is getting a lot of traffic, but no conversions, something on the page needs to be changed. Whether it be a changing the color of your CTA or writing more persuasive content, try some A/B testing to see which delivers the highest conversion rate.
The Bottom Line
There is not a specified number of KPIs each company needs. Depending on the type of business or organization, the KPIs will be different. For marketing campaigns, the above seven KPIs are crucial to ensuring the success of marketing campaign strategies. For more information concerning business intelligence and KPIs, contact ChristianSteven Software at 1-888-781-8966, or fill out the contact form and one of our business intelligence professionals will be in touch with you soon.