In the world of marketing, most things are driven by numbers and metrics.
How many people clicked on your email, how many leads did an offer generate, how many subscribers did your blog acquire?
These are questions that companies ask themselves almost daily, especially when they’re in the middle of a marketing push for a new product or service.
But what about those who are just starting out and don’t have a huge marketing budget or a professional team to analyze their numbers?
How do they measure the success of their marketing efforts in quick and cost-effective ways?
Determining your most important KPIs is the first step.
So which marketing KPIs should you look at most often? Let’s explore.
Cost Per Lead
If you’re a smart, efficient company, you’ll want to keep your costs low and your profits high.
If you’re spending far too much money to acquire a single lead, your marketing efforts are not providing returns that justify your efforts.
In order to calculate your cost per lead KPI, you’ll need to integrate your Customer Relationship Management platform and your marketing automation software.
This will shorten the amount of time you invest in calculating Cost Per Lead and make it easier to repeat calculations in the future.
You can utilize easy formulas for finding your Cost Per Lead KPI.
Checking this KPI regularly can help you manage and adjust your marketing budget based on what works and what doesn’t.
Cost Per Customer Acquisition
Different than Cost Per Lead, cost per customer acquisition helps you find out just how much money you’ve spent on a customer from the time they first access your website to the time they finally buy.
For obvious reasons, this dollar amount should fall within certain parameters, in order to help you stay profitable.
You should also consider how much money you’re allocating to customer acquisition, and how many customers you’ve won at the end of your campaign or designated quarter.
The fewer customers you acquired, the higher your cost-per-customer-acquisition will be.
This will indicate that you need to change up your strategy for attracting and converting customers. It will also indicate that you might want to invest more money in keeping existing customers, rather than attracting new ones.
With this easy formula, you can calculate your own cost-per-customer-acquisition.
Engagement is among your most important KPIs because it reflects how involved your online audience is with your content and social presence.
If you have a massive reach on social, but have very low engagement, you need to re-examine your branding standards, how you present yourself on digital platforms, and the content you’re producing and sharing.
Look at bounce rates and time spent on each of your pages. If your audience is leaving within a few seconds of accessing your pages, your design and content layout might need some work.
Similarly, examining heat maps of your site will show you where your visitors spend the most time, and which pages they avoid or spend very little time on.
Improving your engagement is vital to the success of your other KPIs, and should be examined multiple times a month.
Google Analytics is a great tool for tracking some of the engagement metrics that you need to know.
Crazy Egg is a great resource for seeing where exactly your visitors are clicking when they visit your site.
If you want to directly impact your sales, you have to improve your lead generation numbers.
Your marketing efforts should be providing you with a number of leads each months.
Once you determine the number of leads you want to generate, examining this KPI can provide you with insight about your lead generation efforts and the efficacy of your marketing.
There are a number of other KPIs that you should examine on a regular basis, and all of them come together to form a cohesive picture of your marketing.
For your business to be profitable, you have to know how efficient your efforts are, and how to divide your marketing budget according to those insights.
Determine your KPIs, examine them often, and re-iterate your marketing based on what they numbers say.
Success won’t be far behind.