Yes, we’re aware of the primary key performance indicators (KPIs), such as sales revenue, leads, and cost per acquisition - but there’s a few more you need to be paying attention to in order to create a more effective marketing campaign.
We all want our marketing to produce outcomes that ultimately drive our business goals. Yes, we’re aware of the primary key performance indicators (KPIs), such as sales revenue, leads, and cost per acquisition - but there’s a few more you need to be paying attention to in order to create a more effective marketing campaign. Without the right KPIs, your company could be at risk for making decisions with misleading information, or losing valuable information that could’ve helped make your marketing a success.
Take a look at how many sales your marketing campaign has produced. By understanding how many sales your campaign has produced, you’ll gain a deeper understanding for where your money is best spent. Nobody wants to spend money on anything that isn’t producing the results they’re looking for.
Yes, calculating the total cost per new customer is important when evaluating your marketing performance, but it’s equally important to dive a little deeper to determine the cost per lead. How much does it cost to get someone to submit an inquiry, fill out a form, or contact you? This metric is important for two reasons: you want to know if your campaign content is compelling enough to drive an action, and you also need to know if the cost per lead makes mathematical sense to your return on investment.
So how do you calculate a cost per lead? You need to have a clean integration of your CRM (customer relationship management) platform and any marketing automation tools you have. If you don’t have a marketing automation platform, that’s okay - it’s important to take the numbers from your digital advertising platforms, like Facebook, Google AdWords, etc, to find your cost per lead. You simply divide how much you’ve spent in digital advertising by how many people contacted you or filled out a form.
The old saying that keeping a customer is cheaper than getting a new one couldn’t be more true. Keeping your customers happy and feeling important will help you maintain these long-lasting relationships that will ultimately be profitable and establish a powerful reputation. But how do you measure this? There’s a simple formula that you can use:
Using email marketing is a great way to stay in communication with your past customers. If you send them helpful information they can use, it will help them connect your company’s services with their needs when they need you. It’ll help establish trust and credibility with them.
Of course you’re going to want to know how much you’re making back on your advertising campaigns! You need to understand which campaigns produce the highest returns in order to make smarter investments into future marketing campaigns. Use this formula to calculate your marketing ROI:
Understanding your website traffic is a huge component in determining your marketing success. See where people are coming from - are they coming in through organic search? Are they typing your website directly into their web browser? Or perhaps they’re coming to your website from paid ads.
It’s great if you’ve got a ton of website traffic coming in from your marketing efforts - but what good is it if you’re not getting any conversions out of it? It’s important to track how many people visited versus the number of people who converted. A conversion can be a contact form fill, a phone call, etc. If your conversion rates are extremely low, it can indicate that there needs to be some changes made to your website. But remember: test one thing at a time!
You’ve invested a lot of time and resources into your marketing campaigns - now you want to see how many people have actually turned from a lead to a sale. One thing to keep in mind about digital marketing, however, is that it takes time to close a sale! Typically, people are conducting research online about their service options, and won’t make a decision immediately.
With that being said, there are two different types of leads to evaluate when determining the sales success of your marketing:
Sales Qualified Leads are leads considered to be sales-ready based on their lead score or triggered activities. For example, perhaps when someone fills out a form to contact a representative a lead ready to buy your product or service.
Sales Accepted Leads are leads considered opportunities to your sales team, and they have either been contacted or scheduled a call.
Looking at these two types of leads, you can ask yourself:
If any of the answers to these questions is no, it’s time to get together with your sales team to determine what is missing.
So perhaps your landing page is beautiful - but does it actually work? You can drive all the traffic in the world to your landing page, but the only important metric that actually matters is whether or not it converts. If it’s got a low conversion rate, consider testing out (one at a time!) one of these items:
A big goal of many businesses is to be found easily in search results. When people are finding your website on their own, this type of website traffic is called organic traffic. This minimizes your time and costs to driving traffic to your website.
Your organic traffic is a direct result of your SEO strategy - you have one, right? Make sure to monitor the number of people coming to your site through organic search, and refine your SEO strategy and keywords accordingly.
Social media has been a double-edged sword for B2B companies. They know it’s important, but perhaps haven’t seen the results they’ve been hoping for. But over the years, social media has proven itself to be critical to inbound marketing. Some of the metrics you can monitor to measure the impact of social media are:
We all know that optimizing your website for mobile is important, but you need to know how much of your website traffic is coming from mobile devices.
Pay attention to:
You can find all of this information in Google Analytics - so pay close attention! This will help you identify areas of improvement for mobile users, and map out a strategy based on the devices your customers are using.