Imagine this scenario: First thing early in the morning, your team calls you into an impromptu meeting and inquires for a report on your marketing efforts. What numbers will you give? what is a kpi in marketing? What key performance indicators (KPIs) will you use? How to measure Kpi?
There’s absolutely no need to panic – just be prepared for what’s to come. Learn how to set up the right goals to demonstrate the effectiveness of your campaign. There are several meaningful lead generation metrics you can utilize to prove your efficiency. Here are ten KPIs every marketer should be measuring:
You need to make sure that you can report that your sales revenue far exceeds the expenses your marketing campaigns may incur. Remember, reporting just for the sake of reporting is totally pointless. Reports should lead to increased overall profits. This is the key difference between a proactive, results-oriented team and a backward-oriented team.
How much does it cost to acquire leads (e.g. each lead)? How many leads are generated by your marketing efforts, and what’s the value of theseleads? Consider this hypothetical breakdown of company’s marketing campaign cost, leads, and value:
Notice that while the trade show was the most expensive, it generated the high quality leads (valued at 50,000 dollars each), but only 500,000 dollars in annual revenues. On the other hand, the website cost almost half as much, but it generated much low-quality leads (valued at an average 250 USD per lead). It was responsible for almost two million dollars in annual revenues. Lastly, the webinar garnered higher value leads than its website but lost money overall. A company in this situation may decide to reconsider their investments in webinars.
A customer’s value to your company is only as good as the time they spend as your customers. What exactly is your churn rate? And what can you do to prevent churn or bring it down? You need to know your churn rate and actively try to reduce it. To prevent churn, you need a 360-degree view of your customer, and to continually be monitoring customer satisfaction and usage of your product.
Reporting and analytics are tremendous here. Having the capability to report on and analyze website’s activity, as well as where the traffic is coming from, is vital to your success. Once you have the right tools in place to analyze data, you can optimize traffic resources that result in higher lead traffic, ultimately increasing overall conversions on your site. Take a look at the following scenarios:
The above mentioned chart represents the percentage of leads that occur at Marketo’s website via Google Adwords, social media, webinars, backlinks, advertisements, and tradeshows. Google’s AdWords is the best place to spend marketing dollars. Right?
Let’s take a more in-depth look at the cost and value associated with each channel:
Google Adwords can generate the most traffic, but look at the amount of the leads that come through that channel – at 300 USD each, they have the lowest value by far. Social channels generate less traffic, but the value of social’s leads total nearly $5 million in annual revenues at a much lower cost. Do you still think AdWords is the right way to go?
There are 4 important metrics to look at when it comes to your website traffic to lead ratio.
To drill down to a more granular levels, you should break these metrics down by your campaign, revealing which campaigns are most effective for it.
Once a lead has rightfully met all of your marketing criteria and is considered a Qualified Marketing Lead, your sales team needs to accept the lead as a Sales Qualified Lead. If sales do not accept the lead, the lead is put back on marketing radar. It is essential to know the ratio of leads that are thrown back into marketing’s funnel, just as well as leads that are accepted by your sales. Once you know this ratio, you can address any disconnects in a much better way.
How effective is your content marketing? Are your marketing efforts to drive more traffic to landing pages working? You should always be optimizing your content placement and landing pages, utilizing A/B testing to improve your conversion rates. Look at the following results:
Landing page B works better. Awesome, let’s pull Landing page A down, and you should see a dramatic increase in conversions!
Not so fast…..
It is always important to continually A/B test. The same landing page that resulted in much fewer conversions in Sep out-performed Landing Page B in October. Therefore, always remember to stay on top of your A/B testing.
There are four primary metrics should be monitoring:
The SEO and offline marketing play an important role here. What is it that causes a potential customer to search for your product for the very first time? Was it a billboard on a Highway 101? Also, does the content on your website reflect what you are selling?
How many customers are you acquiring with LinkedIn, Facebook, Twitter, Pinterest, etc.? If you know how well each platform is working, you can more efficiently and effectively focus your social marketing strategy.
We live in an increasingly mobile world. As such, it’s essential that we know the amount of traffic coming from mobile devices. According to the latest biannual report from Knotice, 41 percent of commercial emails are opened on mobile devices. You should have tools enabling you to report on mobile conversions. For example, you may decide to contribute more of your budget to responsive design templates.
So the next time your executive team wants a full report, make sure you have a handle on these ten key marketing KPI. Armed with these KPIs, you’ll be able to prove that marketing is delivering qualified leads to sales. Optimize your spending next time and ensure that your team gets the biggest bang for their bucks.
Are you measuring these marketing KPIs? What other KPIs does your team look at? Let us know in the comment section.