It’s my favourite marketing song. It’s an oldie but a goodie. And it goes like this – Marketing is an investment which must be tracked and measured. Simple.
Of course, time needs to be set aside for this tracking and measuring as well. The data needs to be gathered, analysed and evaluated, but ultimately should provide an excellent guide as to the effectiveness of marketing activities and spend.
Top Marketing KPIs
1. Sales Revenue
Whether offering products or services, your business needs sales. The revenue generated by sales should be one of the indicators of how your marketing is going. You can track overall sales revenue, but also revenue generated by a specific campaign.
How to track: A simple spreadsheet showing your preferred period of sales (weekly/ fortnightly/ monthly) and also a comparison to the previous period last year may help.
2. Cost Per Lead
As your business generates leads, you need to know how much each lead is costing you. Once you know this number, you can start to reduce it and optimise your lead generation spend.
How to track: Keep a record of all your marketing expenses, and keep a record of every lead you receive. This can be done in a CRM or in an Excel spreadsheet. You then divide your marketing expenses by the number of leads, and you will see your cost per lead.
3. Customer Lifetime Value
It’s important to know how much a customer is worth to your business over the length of time they are a customer of your business. This can then help you determine how much you may be willing to spend to acquire each customer.
How to track: there is a formula for this: Average sale/ customer x Average number of times a customer buys/year x Average time in months/ years that a typical customer stays with your business.
4. Lead to Customer Conversion
You must know from all the leads you receive, how many convert to paying customers. You can get this information from the sales team (and hopefully your CRM). Knowing this number will give you insight into the performance of your sales team, and also the quality of your leads.
How to track: Look at the number of leads you receive, and look at the number of those that become customers. For example if you receive 100 leads and 4 become customers, your lead to customer ratio is 1:25. You can then work on reducing this ratio.
5. Website Statistics
Your website is your number one marketing tool on the web, and should be delivering your business leads. To make sure this happens there quite a few metrics you can look at. Also remember, your website is never “complete” or a fixed item. It can ALWAYS be tweaked and/ or split tested so that it improves in the results it delivers.
You may find it handy to keep a note of:
- Total Visits to Your Website – is this number growing?
- Total Number of Website Enquiries
- How many sales does your website generate?
- Most popular pages?
- Top 5 keywords visitors are using to find your site
How to track: There are a few softwares available to help track these, but you may as well just use Google Analytics. You can then take the key information, and save it in an Excel Spreadsheet.
6. Social Media Statistics
Are you using Facebook, Twitter, Google Plus, LinkedIn, Instagram, YouTube? It is also important to know your social media numbers – number of leads, customers and percentage of traffic coming from each platform.
You can also track your “likes” and “engagements” but if these are increasing, but your sales are not increasing then you need to re-think the audience you are engaging.
How to track: Again, there are a few softwares available for tracking your social media results. There are a couple of free ones, but all the best ones are paid. Again, you can take your key tracking metrics and store them in your CRM or an Excel spreadsheet. I will be sharing some tools available shortly in a future blog post, so stay tuned…