Here are 15 key marketing performance indicators (KPIs) that we measure at work. We honestly didn’t start with measuring them all, but five years of entrepreneurship has taught us their value for sure!
Sharing our list of 15 marketing KPIs for the modern-day marketer:
1. Return on Marketing Investment (ROMI) / Marketing – ROI
The first and most basic parameter of evaluating a company’s growth is the return on investment. Understanding sales growth, furthering the efforts to improve and increase revenue is helpful to the long-term growth of the company. This is one metric that needs constant monitoring.
Marketing ROI = (Sales growth- Marketing costs)/Marketing costs
2. Website Traffic
This is the total and monthly numbers of website visitors
3. Unique Visitors
This is the number of unique visitors to your website every month. Google Analytics will give you this data easily.
4. Bounce Rate
This is the percentage of visitors on the website who leave the website after visiting only one page. Again, Google Analytics is your best friend here.
Bounce Rate = Total no of visitors who visited site/ number of visitors who visited only one page and left
5. Customer acquisition Costs (CAC)
Expenditure needs to be accounted for each customer acquisition. This includes both inbound marketing as well as out- bound sales. Each division should ideally be assessed individually.
5a. Cost for inbound marketing includes:
- Work force (both creative and technical)
- Technology and software
- Other overheads.
CAC (Inbound) = Total Marketing investment in Inbound/ Total Number of customers acquired by inbound marketing
5b. Cost for outbound marketing shall include:
- Workforce (here primarily your sales team)
- Advertisement and branding
CAC (Outbound) = Total Marketing investment in outbound/ Total Number of customers acquired by outbound marketing
An Idea into the cost per customer acquisition will give insights of how both the divisions are functioning.
There are various stages in a funnel to become a lead. We can broadly divide them and calculate them as follows:
6. Traffic to Lead ratio/ Lead conversion rate
This is a ratio which assesses how many leads were generated out of the number of visitors to your website and associated media.
TTL Ratio/ Lead Conversion Rate = (Total Traffic generated/ Total No of leads/MQL’s generated) *100
7. Leads to MQL Ratio
This is the ratio which assesses the website traffic to seemingly worthwhile leads.
Leads to MQL Ratio = Total number of leads / Marketing Qualified Leads (MQLs)
8. MQL to SQL Ratio
This is the ratio of the MQLs that Sales teams accepts warm or hot leads to pursue.
MQL to SQL Ratio = Total MQLs/Total SQLs
9. SQL to Pitch Ratio
This ratio helps marketing teams keep track of how many leads actually converted into pitch and demo discussions.
SQL to Pitch Ratio = Total Number of SQLs/Total number of pitches given/demos given
10. Customer Life Time Value (CLTV)
Once the lead is converted to a sale, your relationship with the customer has thus begun. This is one of the key marketing KPIs and is a great way to assess your company’s ROI and strategize future goals. Therefore, the Life Time Value of a customer is calculated by taking the average of all sales made to your customer during the course of your relationship.
CLTV= Revenue X Gros Margin X Average no of repeat purchases
11. Advertising cost per acquisition and cost per conversion
Customer acquisition through cost per click advertising can be expensive. Therefore, it is important to monitor ROI and have a specific metric for screening this. Comparing the numbers of Cost Per Conversion with your Customer Lifetime Value will validate if the campaigns are running profitably or not.
12. Sales Team Response
Time is of essence in any business more so when it comes to sales and marketing. It’s a huge loss of effort and resources if the leads generated are not converted in time. Therefore, this KPI is imperative in understanding the response time taken for sales to be converted.
Simply put, this is the time your sales team takes in responding to a query.
13. Social Media metrics
This is probably the easiest metric to follow. It’s the number of likes, and impressions your social media page receives daily/weekly/monthly depending upon your industry. If your business has a lot to do with social media for e.g. fashion, retail etc. then evaluate everything you can- What are your peak traffic hours, top geographies, what devices is the traffic coming from etc.
14. Social media response time
This is an upcoming metric that is very important for customer delight. How quick is your marketing team answering any queries being dropped on the social media channels – Twitter, Facebook, LinkedIn, Instagram etc.
15.Mobile Traffic leads
In todays’ times this is a relatively newer metric but of vital importance. Knowing how much of your leads are coming from mobile devices (Phones, tablets etc.) vs websites will give you an idea of what additional ways you can engage and have the data and product optimized for mobile.
To further assess the marketing KPIs, there are tools to evaluate the outcome and to take necessary corrective measure for furthering sales. To do this you can set up monitoring systems and start tracking business metrics.
Your marketing KPIs help validate all that is done as a part of the marketing.
Watch out this blog for the next post discussing “Sales KPIs every salesperson must track and be aware of” !