11 KPIs to Gauge Your Marketing Success
Marketing KPIs are the metrics that tell you whether or not your marketing is working. If you don't have them, how will you know if your campaigns are successful?
The good news is that there are 11 KPIs to gauge your marketing success. These metrics will help you decide whether or not to keep running a campaign and how to improve it.
Each KPI offers its own unique insight into how well your website is performing; however, it can be difficult to track each one depending on your daily activities. Help from a digital marketing consultant can make tracking these KPIs much easier while also helping you optimize your site even further.
Revenue
Revenue is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services to customers.
It is the top line or gross income figure from which costs are subtracted to determine net income. Revenue can be calculated for a specific period of time, including monthly revenue, quarterly revenue and annual revenue.
Revenue does not include gains or losses from foreign exchange rates; it only includes the value of sales made through normal business operations during a given period.
Cost per Lead
Cost per lead is an important KPI for marketers because it allows them to determine how much they can spend on generating leads.
Some companies make the mistake of looking at cost per lead in a vacuum, assuming that a low number is good and a high number is bad. But if you have access to enough data, you should be able to see which channels have the lowest cost per lead and also the highest conversion rates—which will give you insight into which channels are creating high-quality leads. Cost per lead may seem like one of those metrics that’s only useful for marketers, but it can actually help companies get more users for less money by helping them optimize their marketing budgets and campaigns.
Marketing Spend
The most obvious metrics you need to keep track of is how much you spend on marketing—after all, it’s what’s bringing in the bulk of your business. Take a look at how much money is going into each of your marketing campaigns and compare that with the return on investment. Example: if you spend $1,000 on a marketing campaign and it generates $1,500 in revenue for your company, then your ROI for that campaign is 2:1.
Cost per Sales Lead
[The Cost Per Sales Lead KPI](https://www.easymetrics.com/blog/cost-per-lead-definition/) is a useful tool for identifying the cost of a sales lead in your sales funnel. It can be calculated using the following formula:
Number of Leads
The number of leads your company generates is an important factor in determining the success of your marketing campaigns. These leads are also a good indicator of how well you're meeting your customers' needs. This is why they're so valuable! Leads are people who have expressed interest in a product or service and are potential customers.
Tracking the following four metrics will help you understand where your leads come from, which marketing campaigns generate the most sales, and which channels help you reach more qualified prospects:
Number of leads generated from each marketing campaign (e.g., webinar, email blast)
Number of leads generated from each marketing channel (e.g., website traffic, paid search)
Number of qualified vs unqualified leads per campaign (for example, if someone clicked on a link but didn't sign up for anything - that would be considered an unqualified lead)
Percentage change in number of qualified/unqualified leads over time
Customer Acquisition Cost (CAC)
CAC is the total amount of money spent on acquiring new customers. It's how much it costs to get someone to click on the “add to cart” button and actually make a purchase. This metric includes the cost of advertising, marketing, and sales, as well as any other expenses that are typically incurred during the process of turning leads into paying customers. Anytime you want to know your CAC — or if you're looking for an easy way to reduce your spending — all you have to do is take a look at this metric.
It's also important not to confuse CAC with Customer Lifetime Value (CLV), even though both metrics measure how much money people spend on your products or services. Here's a quick summary:
Customer Acquisition Cost (CAC) measures how much money it takes for people to get interested in purchasing from you, like the time and expenses associated with creating advertisements or running marketing campaigns.
Customer Lifetime Value (CLV) measures how much money people actually spend buying from you, like the amount of revenue per user or customer over time
Conversion Rate
Your conversion rate is the percentage of website visitors that convert into leads or customers.
The more people you turn into customers, the more revenue you will generate.
You can improve your conversion rate by improving your landing pages, marketing campaigns, user experience, sales process and website.
Time on Site
There's a reason Time on Site (TOS) is on this list. It's very important to track because it tells you how well your content is engaging users. If your average time on site is 1 minute, that tells me that for whatever reason, people aren't finding what they're looking for when they get there and/or the content isn't engaging them to stay longer.
Also, if you have a product site, then being able to see how long people are spending per page can help you identify whether or not there's a problem with the load speed of your pages or an obstacle in your user experience flow. For example, if all users drop off after viewing 3 pages in the purchase funnel, it may be because of slow page loads or an unclear CTA button that can't be clicked. Either way TOS helps you see where you should focus your efforts to improve user engagement.
Pages Viewed per Session/Visit
One of the most important metrics you can track is the average number of pages viewed per session. It's a good indicator of how engaged your visitors are with your content and how useful they find it. If you have more pages visited on average than your competitors, then that's a good sign that your content is engaging and worthwhile. On the other hand, if you have fewer pages being visited on average compared to other sites in your industry, then it might be time to make some changes to either the way you structure your site or create more relevant content for readers.
Blog Traffic
The first thing you should be tracking is blog traffic. It's a key metric that tells you how many people are viewing your content, and also a measure of other important things like user engagement, satisfaction, and brand authority.
Email Signups or Opens and Click-throughs
List signups: List signups are the number of new subscribers who have signed up for your email list, meaning the number of people who have given you permission to send them future email communications. To track this metric, you need an email service provider (like MailChimp) and a web analytics tool (like Google Analytics).
Average open rate: Your average email open rate is the percentage of emails sent that were opened by recipients. To track this metric, you need an email service provider that tracks opens.
Average click-through rate: You average click-through rate is the percentage of opens in which one or more links was clicked on. The key here is clicks—you can't accurately measure this through opens alone because it's possible that many people opened your emails without clicking any links inside them.
Average unsubscribe rate: Your average unsubscribe rate represents the percentage of emails sent in which someone chose to unsubscribe from your list; i.e., stop receiving communication from you. Again, your email service provider will be able to tell you this information—it's just a matter of knowing where to look for it within their platform.
Average bounce rate: An "email bounce" occurs when an email cannot be delivered to its recipient's inbox because there was some problem with either the server or the recipient's mailbox itself—the "bounce" refers in part to how a message bounces back into your server when it cannot be delivered as expected.
So, there you have it. 11 KPIs to gauge your marketing success.
Now that you know what to measure, the next step is to start measuring it! It's easy to get lost in the weeds of data and lose sight of what's important. But if you take these 10 KPIs into account when setting goals for your company, you'll be on track to reach them and make an impact on your bottom line.