A Key Performance Indicator (KPI) is a measurable value that shows how effectively a company is achieving key business objectives or Set of goals that the company has assigned. Firms use KPIs to evaluate their success at reaching desired targets.
Selecting the right one will depend on your industry and which part of the business you are looking to track.
Focusing on the right metrics and selecting the most suitable marketing KPIs for your business is important for your marketing strategy to succeed.
But you’re here for specific examples. Here are seven marketing KPIs you need to know about:
- UNIQUE PAGE VISITS
- TIME ON PAGE
- SALES METRICS
- USER AND CUSTOMER ACQUISITION
- QUANTITY AND QUALITY OF LEADS
- CUSTOMER LIFETIME VALUE (CLV)
- INBOUND LINKS
- SHARE OF VOICE (SOV)
- BRAND AWARENESS METRICS
- NET PROMOTER SCORE (NPS)
Here are seven marketing KPIs you need to know about:
1. UNIQUE PAGE VISITS
One of the simple measuring trends is to see unique page visits of your content’s success is the traffic it’s receiving. Take a look at your unique page visits to see how many people are visiting your page on a daily, weekly, or monthly basis. See the progress and which page is getting the most viewed. evaluate the behavior of your new visitors See what kind of content is attracting and keeping them on page engaged.
Downloads done by the visitor can give you even more insight into the likeability of your content since they indicate a raised level of interest the reader probably had to fill out a form or downloaded pdf that you have given as a part of creating the first initial freebies by giving free content or courses, this means he is interested in it and may come for more.
3. TIME ON PAGE
As we discussed earlier in the first point, Time spend on a page is among the key indicators also you can use a plugin like Hotjars to see what page of content or space is hovered most by a reader. A page visit involves one thing. But someone actually staying on your page long enough to read an entire article or check out the entire contents means something else completely. This says that your content was high quality which deserves extra attention.
4. SALES METRICS
Sales metrics directly indicates the growth of your business, making it the most important KPI. But you need to know which financial metrics make the most sense to measure given your business model. Sales metrics are easy to measure as you know their exact value. You need to have these numbers in your Customer Relationship Management system, checkout operations, or whatever financial system you’re using. For marketing review purposes, you might require to use Enhanced Ecommerce tracking in Google Analytics or its alternatives that can associate with sales to your marketing efforts.
5. USER AND CUSTOMER ACQUISITION
Stimulating your user base growth doesn’t necessarily mean more profit, but it has suggested way beyond any financial metrics. The cost to acquire the customer and keep him interested or keeping him rolling in the funnel takes more than just email. so everything should be accounted for and comes with some sort of acquisition efforts.
6. QUANTITY AND QUALITY OF LEADS
If you have a subscription-based model, following this KPI might be the right thing to do. This resonates with your marketing channel effectively. which tells how users are attracted to which kind of action and who are likely to buy something from you, which also tells how should you then carry forward and design a more effective plan for the same. The quantity and quality of your leads are an anchor to a growing customer base and sales growth.
It’s not tough to figure out the lead quantity as all this information will be available in your CRM tools. It’s about the quality of leads that need more detailed work of analysis and planning. Also, Lead Scoring comes in handy while deciding on what kind of leads are coming in. You can also develop automated systems that score your leads based on the data prompt or automated command to figure out quality leads.
7. CUSTOMER LIFETIME VALUE (CLV)
Customer lifetime value (CLV) is a metric that estimates how much money an individual customer will spend on your products or services. Increasing your average customer’s quality not only fixes your financial metrics but also allows you to spend more on acquiring new customers.
This is the most basic formula to calculate CLV:
Avg. Order Value x Avg. Annual Purchase Frequency x Avg. Customer Lifespan
If your AOV is $50, customers buy the product five times a year, and they stay loyal to your company for four years on average, the CLV would be 50*5*4 = $1,000.
Typically, you need to have at least a few years of sales history to get the metrics for CLV calculations. But if you already have this data, you can also estimate which of those three metrics need improving the most.
8. INBOUND LINKS
What’re inbound Links -Are people linking to your site or not? which means that the content is improving your credibility. When other websites begin viewing you as an authority, it can increase your site traffic and help in achieving a higher place in search rankings.
9. SHARE OF VOICE (SOV)
Share of Voice (SOV) is a traditional way of measuring your advertising campaign or a share of voice compared to competitors. Nonetheless, with most brands now competing for visibility on organic channels like social and search. This is another most underrated and excellent marketing KPI, It’s important because there is a strong relationship between Share of Voice and Market Share. If your SOV is much greater than your market share, you create extra SOV and thus your market share should follow the same direction in the long run.
Here are a few marketing channels and their metrics that can represent SOV like Organic Search — Ranking in SERPs, Paid Search- Impression of share, Social Media- Brand Mentions comparative to your competitors, TV ads- Gross Rating Points(GRP). you can use tools to track keywords compared to your competitor’s domains also helps in comparing the competitor’s overall tab.
10. BRAND AWARENESS METRICS
Brand awareness represents your brand’s awareness within your target audience. For example, the brand that first comes to mind when you think of Toothpaste is probably Colgate, not Pepsodent. That’s because Colgate enjoys a higher level of brand awareness among consumers.
there are two things you can measure regarding your brand awareness:-
- Does your brand come into people’s minds in your respective industry? In simple words, what percentage of your industry knows about your brand.
- Do consumers or people relate to your brand positioning? are your marketing communication is creating the right associations around your brand awareness.
Measuring brand awareness demands market research resources as it requires a representative sample from your market. Few market research agencies excel in such comprehensive data research thus it can be helpful.
11. NET PROMOTER SCORE (NPS)
Net Promoter Score (NPS) represents consumer satisfaction and reliability based on how likely they are to recommend your product or service to others.
The NPS score is then calculated by subtracting the percentage of detractors from the percentage of promoters. The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for measuring the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the respective brand.
Generally speaking, scores above 70–75 are considered excellent, but the threshold can be lower depending on the industry that you fall under.
the way to measure it is there are many NPS distribution channels which are the forms of physical, online, email, or just a popup notification on the browser.
The calculation is easy as most of the work is done by the software already, but one has to consider that it’s just one number without any context. while measuring NPS, you should also look into the motives of users’ score decisions. as for more clarity, you can ask follow-up questions as part of user survey satisfaction to get more qualitative data.
there are a few more metrics like Return on Investment (ROI) and Customer Acquisition Cost (CAC) you can use for measuring marketing KPI but you need to be more careful with them as they can give short term satisfaction as it can lock you in short term decisions KPI and you need more than that just to have far better outreach to measure and cater to business for the long run.
Nevertheless, you can use these metrics as KPIs for channels where they make the most sense, like PPC ads. but as we shift to display ads- there something that also tends to be covered by PPC experts — as it doesn’t make sense to look at CAC or ROI.
For long-term effects of getting a brand in front of masses with display ads can be larger than having people actually clicking through. but it makes even less sense to use these metrics to brand-related channels like billboards or TV.
Last but not the least, don’t measure any metrics just for the sake of measuring them. Make a habit to set solid strategic marketing goals that use these KPIs or the right KPIs as per the selected channels.