Measuring the growth of your business is crucial when it comes to knowing what you’re doing right. It also helps you understand what you could be doing better. However, when it comes to marketing KPI metrics, not all are created equal. Focusing on the wrong KPI metrics to make strategic business decisions can halt business growth. Essentially, you need to find your “true north” KPIs.
10 Marketing KPIs:
“True north” metrics are the most important when it comes to measuring the growth of your business. These metrics will inform you whether or not your growth initiatives are contributing to core business goals. As you experiment with different forms of new channels and content, the following are the key business marketing KPIs to keep in mind.
1. Cost Per Opportunity
To calculate cost per opportunity, divide the sum spent on a marketing campaign by the number of qualified (or deep) opportunities generated. This KPI metric is the perfect way to determine just how effective your most recent marketing strategy was. This will also allow you to focus on optimizing various stages of your sales funnel to decrease your spend in inefficient areas, and maximize profitable ones.
2. Customer Acquisition Cost
Customer acquisition cost is similar. Divide the amount spent on a marketing strategy by the number of customers acquired. By calculating how much it costs to acquire a customer, one can adjust their marketing strategy accordingly. This metric can be viewed as more impactful because this shows you which channels generate actual revenue and closed won deals for your organization.
3. Customer Lifetime Value
When you understand the average lifetime value of your customers, you can calculate the true ROI of your marketing campaigns. Customer lifetime value measures how much a customer spends on average each and every time they buy. It also includes how long they buy, and how long they’ve been a customer. This can help aid in chatbot efficiency as well as creating fresh material for marketing campaigns.
4. Social Media Reach
Of all KPI metrics, none are more crucial or relevant today than measuring social media reach. Measure how many prospects you’re reaching, and how often they interact with your content. Then, you can develop a clear picture of how effective your content really is, as well as continue to create the content they wish to consume.
5. Website Traffic
Website traffic can be measured via Google Analytics, Google Search Console, Statcounter, Matomo, and many more. This will show you how effective your website is. It can also paint a picture of how many prospects are viewing what you have to offer. Refer to spikes, declines, and overall patterns in traffic. You can decipher which marketing strategies during that time of year were most effective, and which fell short.
6. Return on Investment
Marketing ROI can be calculated in two ways. The first is by dividing the overall sum spent on marketing by revenue generated. The second is by dividing the amount spent on marketing by customer lifetime value. The latter will help you project future revenue while justifying your investments into marketing your product/service.
7. Brand Awareness
How often are people searching for your brand? How frequently are they mentioning it on social media? Business KPIs for brand awareness is crucial. With this measurement, you can determine how relevant your product/service has become, where your brand sits in the competitive landscape—and why.
8. Conversions by Source
If you know which sources are routing your customers to you, it can create a hotspot for clients that you can capitalize on. Let’s say you get more traffic and sales coming in as a result of certain content on certain platforms. If so, you can increase your content output on those platforms for more conversions.
9. Call-to-Action Performance
This is one of the most effective KPIs you can use. Gauge how well the elements of your marketing campaigns are contributing to lead generation and conversion. With this KPI, you can analyze navigation CTAs and conversion CTAs. Next, you’ll see the click-through rate and can look for opportunities for optimization.
10. Landing Page Performance
This is the page your prospects will be sent to after clicking a hyperlink. There, they can view current promotions, new products, features, etc. Your marketing goals will always determine which page your prospects are sent to via the hyperlink. Monitor the total visits, traffic source, total conversions, and conversion rate. Then, you can determine what aspects of your marketing strategy need changing.
The Tools for the Job
You have all of the tools at your disposal. If you don’t, get them. These marketing KPIs are crucial for business growth and will serve you well when developing or tweaking marketing campaigns. For more B2B insights, be sure to visit VSSL today.