This article will tell you how all about marketing KPIs. You will learn what marketing KPIs are, how to discover your top marketing KPIs, and some tools you can use to measure your marketing KPIs.
What are Marketing KPIs?
Marketing KPIs, known as key performance indicators, are a measure that reveals how effectively a company is accomplishing integral business objectives. Marketing KPIs measure several different levels of a business to understand what they are doing well and what they need to improve upon. This article will focus on marketing KPIs, though KPIs can be used in various ways. For example, you can also use KPIs to measure SEO.
Marketing Measurement Tools
Knowing the results of your marketing efforts is extremely rewarding. This can help in improving your campaign and understanding your customers to the best of your ability while increasing your digital presence. While there are many different tools to use in understanding performance, we will discuss five successful ones, including social analytics, Google Analytics, campaign URLs, Hashtagify, and Klout.
Every social media that exists offers analytics. These analytics provide insights on how effective and efficient your efforts are. Instagram is known for its ability to deliver meaningful analytics. Instagram insights displays how many views your post got, demographics of individuals who viewed them, what days saw the greatest volume of viewers, and it even has the technology to convert an engagement percentage rate. It is then possible to break down this information even more. For example, you can discover when each follower is on Instagram most. Then, you can schedule your posts to your clients’ preferences.
Instagram is not the only social media that offers an amazing outlet to interpreting analytics. Twitter analytics is very similar and it can also tell where your followers are located, their interests, gender, and who your followers follow. LinkedIn, a business app used to connect individuals also provides similar insights. It shows who has viewed your profile, what type of position/company this person is with, and recommends users to connect with. This unique experience fosters employer-employee relationships and allows current college students to connect with companies before they graduate.
Did you know that you can use Google Analytics to help measure your KPIs? Google Analytics plays a key role in helping you understand simple logistics about your web page.
Google Analytics provides insights on who visited your page, when they visited, how long they were on the website for, what device they were using and much more. This is a great opportunity to capitalize on to understand how effective your efforts are and what attracts users the most about your website. You can then use this data to make decisions about what can give you the highest volume of traffic along with understanding what demographic you should be targeting. If you don’t have a Google Analytics account, you will need to set one up.
For example, if you find that most people use their phones to visit your website, you might want to revamp it so it’s mobile-friendly. This way users can navigate your website with ease and avoid complicated layout issues. You can also determine what content is most appealing. If it is a page of videos, then it would be a smart decision to include more videos and graphics in your advertising campaign.
Campaign URLs allow you to track your marketing efforts and how effective they are at bringing relevant users to your website. Relevant is the keyword because you can have hundreds of thousands of people visit your page, but if they are not actively using your product or service, it is wasteful and unimportant traffic. To utilize campaign URLs, you choose a URL of where you want to send a user on your website, then you add a source, campaign medium/campaign name. Then you will use the URL Google generates about your marketing materials.
These stats appear in your Google Analytics page, which entitles you to understand how effective your campaigns are. Campaigns URLs have the power to determine what places your ads are generating the most revenue (apps, websites, etc.) This can help reduce costs and allow you to focus on that one medium that is supplementing the most amount of profit.
Hashtagify is a great tool and it is completely free to you. It lets you see how hashtags are being used on Twitter. With this tool, you can learn about what hashtags are being used the most. The large the circle is, the more the hashtag is being utilized. It can also inform you on what hashtags are interconnected and often used together. This can help you draw conclusions about relationships between different topics. You can also track hashtags over time and see what is popular now, how it has progressed, and what used to be popular. Monitoring hashtags will allow you to stay innovative and adjust your verbiage to the current/most popular word choice.
Klout is a medium that measures social media influencers. All you have to do is sign up for Klout with whatever social media you want profiles you want. In turn, it provides a multitude of measurements such as: how often your posts get retweeted, how many followers you have, how many conversations you participate in, and more. All of this information then creates a Klout score to rank you on how you are doing/how popular you are. Klout has the ability to interpret what kind of things you are talking about and then categorizes you to help you engage with users within a similar industry.
We briefly touched on what KPI marketing is, but now we will discuss it in more detail. Key performance indicators are like scoreboards that keep your strategy on the right path. KPIs allows you to manage, control, and achieve desired results. A ton of marketing metrics are not required, but what is required is a thorough understanding of the metrics you choose. You should first define your desired business goals. What ideally does your business want to achieve. Make sure to make your goals specific and attainable.
An example would be: I want 20% of customers to be a store credit card holder, or I want to increase sales by 10%. The more you understand where you want to go, the easier it is to create KPIs that work to your benefit. Next, keep a scorecard. Pick a few measurements that can determine if you are meeting your desired goals. For example, if you want to increase the number of viewers on your social media pages, you could measure: how many people visit your website currently, what time of day you see the most traffic, what posts product the most engagement, etc.
The last step is to keep your strategy on track. Recognize how frequently you report in correspondence with the goals you desire to achieve. And don’t forget to compare your stats to previous periods. Following all of these steps will allow you to utilize KPI marketing in the most effective way.
Marketing KPI Examples
There are many examples of KPIs, but we will discuss 18 of them that fall under four different categories: financial, customer, process, and people.
- Profit: Profit is one of the most important metrics out there for obvious reasons. Profit allows you to understand your company’s ability to create good ROIs. It is imperative to analyze gross and net profit margin to breakdown how your company creates returns for itself, and where improvements can be made.
- Cost: Measuring your costs will tune you in to where your company is spending money. It will let you budget better and see where you can make adjustments on suppliers, manufacturers, etc.
- LOB revenue vs. target: This compares your projected revenue to your actual revenue. You can work out discrepancies and determine how well your department is performing.
- Day sales outstanding: To determine your DSO you take your accounts receivable/the total credit sales*the number of days in the time frame you are accounting for. You want your number to be lower as it means your company is more successful at collecting accounts receivable.
- Sales by region: This metric allows you to determine what regions are best meeting the objectives and why. You can then take their tools and implement them in other regions to obtain optimal sales.
- LOB expenses vs. budget: This metric compares your forecasted budget with your actual overhead. From this, you can understand where you deviated from your plan, and how to fix this.
- Customer lifetime value: CLV determines what benefit you are receiving from sustaining close relationships with customers. It becomes evident what customer relationships are doing for your business.
- Customer acquisition cost: For this metric, you divide your total acquisition costs by the number of new customers in the time frame you are looking at. This is extremely important in e-commerce because it helps you understand your marketing campaigns and how cost effective they are.
- Customer satisfaction & retention: Ensuring the customer is happy is everything when analyzing a business. You can understand how happy your customers are with your business and what makes them become a loyal customer over time. This metric can also be used in understanding shareholders.
- Net promoter score: NPS is a great way to indicate long-term growth within a company. To do this, you can send out surveys to customers consistently to uncover how likely they are to recommend your company/products to friends and family. Track these results over time to help your numbers grow.
- Number of customers: The number of customers you have gained/lost in the last year can help you understand how you are/not meeting your customer’s desires. You can then use this information to better serve your customers and grow your target market.
- Customer support tickets: You can analyze the number of new tickets to the number of resolve tickets to compare resolution time. Are you rapidly addressing customer concerns? Are you actively satisfying your customers through your customer service?
- Percentage of product defects: The lower the number of product defects the better. You can use this metric to determine what manufacturers are falling short, ultimately reducing your shrink.
- LOB efficiency measure: With this metric, you can determine how many outputs are being produced per hour/ how many hours of work your plant was running for. This can once again help you become more efficient pertaining to your operations.
- Employee turnover rate: To uncover this number, take the number of employees who have resigned from the company and divide it by the average number of employees. This can help you evaluate company culture and whether or not you are actively valuing your employees.
- Percentage of response to open positions: If you have a high number of qualified applicants who applied for the position, you are effectively posting the job listing to the proper websites.
- Employee satisfaction: You can measure your employees overall satisfaction through various surveys. These surveys can identify what employees want to see improved/what your company is doing well.
Start Using Marketing KPIs for Your Company
KPIs are a great way to measure the overall success of your company. It allows you to break down different categories and identify what aspects of your business are strong/what needs improvement. A company must stay up to date with changes in the market and customer desires as they change rapidly. Contact SEO Design Chicago today to enhance your company and seek solutions to your problems.