6 Marketing KPIs That You Should Track

6 Marketing KPIs That You Should Track

When it comes to tracking the efficacy of marketing campaigns, results, and ROI, marketing KPIs play an imperative role. KPI or Key Performance Indicator is a measurable metric that showcases progress towards your business goals. Businesses worldwide leverage KPIs to track the potency of marketing campaigns across multiple channels.

Whether it’s your brand’s digital marketing performance, sales revenue, cost per acquisition, or SEO (Search Engine Optimization) progress. Tracking KPIs can help your business execute successful marketing strategies. Today, we will talk about popular marketing KPIs that you can track to ensure marketing campaign efficacy and improvise on the move.

Know Which Marketing KPIs To Track:

Now that we know what a KPI is, the next step is to define a distinct set of marketing Key Performance Indicators that businesses can leverage. However, since one size doesn't fit all, all companies don't require the same set of KPIs. 

For selecting KPIs to track your marketing efforts, the solution is in the "Key" of KPIs. Every KPI should relate to your business' critical outcomes & end goals. So, without further ado, let's move ahead and understand popular & generic marketing KPIs that you can use to measure progress for good.

Digital Marketing ROI:

Every organization wants to see a return on its investment. Digital Marketing ROI is one of the most critical and insightful KPIs that can help businesses assess performance and fine-tune marketing efforts. You wouldn't want to allocate more budget to the market activity that is lagging. 

While creating a content marketing strategy PPT, marketing teams can use this KPI and determine which segments are generating the best bang for your buck and which are taking a toll on the budget. Digital Marketing ROI is the difference between marketing investment and sales growth divided by the marketing investment.

Customer Acquisition Cost (CAC):

When it comes to making critical budgetary decisions, Customer Acquisition Cost plays an important role. The KPI measures the amount of money and resources spent to convert a potential lead into a customer.

CAC provides the much-needed insights into the customer onboard journey and helps you make apt budget allocations. For instance, if your CAC is low, this would mean that you're not spending enough to attract customers to your business.

Customer Lifetime Value (LTV):

Customer Lifetime Value depicts the total amount of money a customer may spend during their lifetime on your services, products, or business. The KPI tells you how your most profitable clients are, the products with the highest profitability, and products that the higher LTV customers want. 

Customer Lifetime Value also tells you how much you may spend to acquire a similar customer and foster a profitable relationship. The KPI holds a significant potential to boost the profitability of your business. 

Traffic To Lead Ratio:

For any business out there, understanding the website traffic is extremely important. You must understand where the traffic is coming from! Whether it's referrals, social media, direct or organic. Often the traffic grows on the website but leads to no susceptible financial changes. 

This is where the KPI comes in. It tells you about the quality of your website traffic and also points out that something is missing on-page. Traffic To Lead Ratio also helps you provide the right content to your audience and converts the visits into leads.

Marketing Qualified Leads (MQL):

A Marketing-Qualified Lead (MQL) is a lead that has successfully engaged with your organization and possesses the potential to become a serious prospect. The KPI tells the brands that if you foster and nurture a good relationship with the lead, you can bring prospects aboard for a long time. These are the leads that have shown interest in buying your service or product. 

In simple terms, MQLs are open to the idea of a sale and have taken the primary step to engage with your business. MQL KPI also helps marketing teams discover how many leads they're bringing into the organization. You can also pair MQL with SQL (below) and determine how many of MQLs became customers.

Sales Qualified Leads (SQL):

If brands nurture an MQL- Marketing Qualified Lead the right way, the lead can eventually become a Sales Qualified Lead. This is a customer who is at the stage where he/she is ready to talk to your sales team. 

SQls are the prospective customers that have been researched and vetted first by the marketing teams, then by the sales team. SQL is an important marketing KPI since it helps businesses discover how many leads came in and connected with the sales team.

Wrapping It Up:

The KPIs mentioned-above aren't something you check once and lose track of again. Marketers should track the KPIs on a weekly, monthly basis. Regular tracking of KPIs will help you generate valuable insights & collaborate with marketing, sales teams better. 

Thus, you can discard campaigns that are not performing and fine-tune the ones encompassing potential. Always remember that the goal is to acquire customers and boost revenue. Leverage these KPIs to identify missing pieces in your marketing strategies, now!