To see the progress of your marketing effort towards your marketing and business goals, Key Performance Indicators or “KPIs” are important pieces of information that you essentially need. Although all your marketing efforts should be measurable, many businesses are still uncertain about what KPIs are in the marketing world. A key performance indicator is a term of a measurable component that can be used to determine the efficiency of companies’ campaigns in order to achieve their business goals. Generally, enterprises use KPIs in their marketing campaign to determine whether they’re spending their budget right helping them to build better budgeting plans.
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The right marketing KPIs will develop better strategies
To have an efficient, budget-wise marketing campaign, there are a number of KPIs that you should be tracking. The right marketing Key Performance Indicators (KPIs) will make businesses to be able to execute better strategies. However, without the right Key Performance Indicators (KPIs), businesses might do wrong decision-making based on misleading data. Therefore, your marketing’s Key Performance Indicators (KPIs) should be put on the plan to escalate your business’ growth.
Here Are 5 essential Key Performance Indicators (KPIs) that you should be tracking:
Getting more leads means you can have more sales opportunities and ultimately increase the chance of better sales growth. Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs) are terms that you should be familiar with and you should know the difference between them. An MQL is a prospect that has engaged with your business and is considered to be more likely to become a customer than other leads but is not relatively ready to make a purchase yet. While a sale qualified lead (SQL) is a prospect that is considered worthy of a direct sales follow-up, which is the next step in the sales progression. SQLs have been examined and researched much further by your marketing department and are deemed ready to make a decision. A marketing qualified lead can turn into a sale qualified lead if you nurture them right.
Even though the main difference between Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs) is the readiness to buy, but many businesses still cannot clearly determine the classification. How the leads engage with your business online or their behavior on your website is a great determining factor of whether they should be measured an SQL or MQL.
2. Social Media Reach and Engagement
Social media marketing allows you to give out your content, interact with your potential customers, and even make a good connection. Therefore, your social media marketing plan plays an enormous part in your overall marketing efforts. A great aspect to judge this KPI is by measuring the growth of your business’s social media account, for instance, the number of followers on Instagram and Likes on the Facebook page. Both of these social media platforms offer tools in making the analysis and makes it extremely easy to get this information when it is needed. Engagement on social media can also be tracked through metrics that determine customer conversions, lead conversions, and the percentage of web traffic connected with your social media campaign.
One important note to take, not all social media platforms will work well for your business, therefore, it is important to make sure you use the ones that really matter to your customer and your business.
3. Sales Growth
This KPI is important for the long-term development of your business. The ultimate way to know whether all your marketing efforts are successful or not is by measuring the growth in sales revenue. Sales growth is a metric that measures the capability of your business to raise revenue over a fixed period of time. Sales growth is an important indicator that you have to use to make a decision in your business strategy and allows your business to be aware of the risk of stagnating. Measuring the impact of your digital marketing strategy on sales growth will help to adjust your marketing strategy and execute the one that does escalate sales. Sales growth is not merely a good indicator to change regulations in strategic planning, but it also allows a business to identify the growth trends and evaluate a strategy for future growth.
4. ROI (Return on Investment) of Your Online Marketing
One of the most important aspects of having a successful marketing campaign is the capability to analyze and report your website activity. When you are able to analyze the sources of your traffic, you can reform the strategy to generate more leads and ultimately increasing conversions on your website. The measurement of ROI (Return on Investment) is essential to evaluate your monthly and annual online marketing performance. The data will help you to properly plan your next marketing strategy and budgeting plan. Adding money or increasing the budget for a marketing effort that is not equal to the results is definitely something that you want to avoid. Therefore, make sure you measure your online marketing ROI (Return on Investment) and begin to set a better future plan.
5. Organic Traffic
Organic traffic KPIs are metrics used by businesses in order to measure and confirm if their content and SEO strategies they perform are effective or not. These metrics also allow businesses to have insights into their brand awareness and help them to set a better strategy to increase it and drive more sales. Having traffic that comes from organic search is one of the goals of any business in using inbound marketing. Therefore, ensure to monitor this metric along with your keywords to improve your SEO strategy and eventually escalate the organic traffic to your site.
Above we have collected 5 essential Key Performance Indicators (KPIs) to improve your marketing strategy. These metrics can help to have a better measurement of whether your digital marketing efforts are on the right track or not and make better decisions on your future marketing plan.