Key performance indicators are measurements to achieve a company’s business goals. Every business company creates its own strategy. These strategies make a company reach its goals. With key performance indicators, you will be aware of whether your company’s strategy on track. If it is not, you decide the way you follow and adjust your strategies. In this article, we will touch upon the KPIs in marketing.
You should be aware of KPIs significance because you will be lost on your way when you do not utilize them. Although you do not have to use all the KPIs, you should decide which one is a need for you carefully. You can shape your KPIs according to your strategies. Thus, let’s see the KPIs in marketing!
Measuring your company’s sales growth is mostly a long-term need to enhance your company. You should measure your revenues and create your strategies to increase the sales and revenues of your company.
It will be healthy to share your sales growth with your co-workers and employees because everyone in a company has the same aim in enhancing sales and the company. Therefore, they can decide their own strategies in light of the company’s strategies. You can also give your employees short-term goals, so they’ll be aware of their roles in the company better.
Marketing Qualified Leads and Sales Qualified Leads (MQLs & SQLs)
Leads can seem like your potential customers in different ways. When you know your potential customers, you can decide the strategies to sell your products or services to them.
Marketing Qualified Leads (MQLs): These leads are customers that follow and probably almost ready to buy your work. They seem more likely to be your long-term customer. However, to make them your customers, you should know their behaviors before the sales. Then, you should decide on your strategy and the ways of reaching them. According to the ratio, you adjust your goals and strategies again.
Sales Qualified Leads (SQLs): SQLs also have a nice potential to be your customer. However, your sales team’s marketing abilities are important here. It is because these leads need right and convincing answers for specific questions. It means that the leads are already close to buy your product or service, but you need to fulfill their specific needs. Therefore, they will be ready to be your customer.
Customer Life-Time Value
This measurement is for your current customers because firstly, you should keep them satisfied to target new customers. We can say that it basically measures your customers’ behavior. According to the average consumption amount and average revenue per customer, you can create new campaigns to maintain their behaviors. Moreover, it is crucial to inform your customers about your services or products regularly. That is the way how they can be updated.
Sales Team Response Time
Fast responses to your customers help you to maintain and raise your quality of leads. If your sales team gives fast answers to customers’ needs, your company’s customer satisfaction will increase. This increase is significant for competition among other companies. In order to measure it and adjust your strategies, you should know your sales team’s response time and other companies’ sales teams’ response time. Therefore, you will be able to make comparisons and decide to way you will walk.
Knowing your website’s traffic helps you to learn your customers’ behaviors. You can learn your customers’ locations, the time they have spent on your website, and the platform or the way that they have found your website. Therefore, you can be more specific about your methods while you are trying to reach your target customers. It also helps you to find your MQLs and SQLs. It means that you know your potential customers better so that you can meet their necessities better.
Cost of Customer Acquisition
Cost of Customer Acquisition means the cost that you spent for one customer to buy your service or product. The cost can be for advertisement or any other marketing strategy. The calculation is simple. If you want to find your company’s COCA, you should divide your total marketing investment into the number of acquired customers. For instance, if you spent $100,000 on your marketing strategies and you have reached 50 customers. Your cost of customer acquisition will be $2,000 in this case.
Social Media Reach and Engagement
Social media is an important part of every people’s life, and you can reach many people from there. Decide your social media strategy and check them regularly. You can see the analytics when you promote your company’s social media page. You can learn how many people reached your ads and website or how many people followed your company. It also helps you to improve your MQLs and SQLs.
FAQs on KPIs in Marketing
It is not that hard, but it needs good criticism. Firstly, you should decide your goals very clearly. Then, try to understand all the KPIs’ needs and consequences. Now, you will be able to make associations between your goals and KPIs. Choose the KPIs which are more associated and related to your company’s aim.
There are some ways of evaluation. Firstly, giving your employees short-term targets and comparing them regularly is a very healthy way to measure their performance. However, it is a more sale-focused solution. While measuring their sales, you can give them self-evaluation tasks periodically. Moreover, you can ask your customers to give feedback on your customer satisfaction policy. It is because the communications of your employees are important as much as their sales performances.
The first need is objectivity. If you try to see every detail happening in your company clearly, you can make auto criticism in a more objective way. You should not console yourself and make excuses for failures. It is because even though you should find the problems and work on them, you should not keep them on your way. Therefore, you can be accustomed to problems, and it will not be good for your company.
After you gain your objectivity, you can use KPIs given above to assess your company’s work. They are the ways of measuring both the inner and outer performance of your company.
It is because your company will need strategies for everything. For example, you should manage your budget carefully, and to do that, you should know your gross margin. Moreover, you should know your customers’ behavior in order to decide your marketing investment and strategies. The list can continue this way, but the underlying message is always that when you measure performance, you can improve your company better.
You can measure your company’s quality in different ways as well. The first way is mystery shopping. The examiner, who is a mystery shopper, evaluates your company’s work as a customer. Moreover, you can use the methods of measuring customer satisfaction. They can be surveys or any scoring method. Lastly, you can use the social media monitoring method, which is related to Website Traffic KPI.
Today, we tried to give you some methods of measuring your marketing company’s performance with KPIs. You also can find the answers to frequently asked questions for KPIs in marketing. Be careful and good luck!