By Rahis Saifi
Every day your company’s business activities generate data – data that can help you understand the value of your marketing efforts and the adjustments you must make to various marketing campaigns. There can be an overwhelming number of Key Performance Indicators (KPIs) available for use by marketing managers. However, this does not mean that every available KPI is worthy of tracking. In fact, tracking too many KPIs can have quite the opposite effect, causing us to spread our attention and resources too thin. It can also cause us to ignore the KPIs that actually do matter. Therefore it is important that marketing managers be selective about which business KPIs they choose to track. However, with so many available marketing KPI examples and templates to choose from, how will you know which KPIs deserve your attention. Here are a few that you can get started with.
1.Bounce Rate – This KPI is the measure of how successful your customer is at finding what he or she needs on your website. You do not want your customers to arrive at your page and then leave in exasperation because they either did not find what they needed or found searching far too difficult. The Bounce Rate measures the percentage of potential customers who leave your site having only viewed the landing page. Understanding your bounce rate can help you to gauge whether or not you are providing your visitors with the content they need and whether or not that content is easily discoverable.
2. Goal Conversion Rates – While it is important to keep track of website traffic, this marketing KPI measures the marketing manager’s success in meeting the goals set by or for them. Goal conversions are wide and varied and may consist of a customer purchasing a product, downloading an e-book or signing up for a newsletter. For this KPI to be worthwhile, marketing managers must have a clear idea of what their goals are. Next, they will need to track the conversion rate of each goal. It would be wise also for marketing managers to keep in mind their bounce rates and the length of each visit in order to have a good idea of how these KPIs depend on one another. Lower bounce rates will result in higher conversion rates and vice versa. If conversion rates fall below expectations, marketing managers may want to examine the efficacy of their call-to-actions.
3. Landing Page Conversion Rates – It is not enough to look at your website as a collective whole while considering its success or failure. Marketing managers must also acquaint themselves with how productive each landing on your website will help you to identify the successful and less successful approaches of each page that you oversee. When you are aware of what works and what does not work, you have a much better chance of replicating a successful approach on less successful pages. Of course this sort of compare and contrast works best when pages have similar goals for example e-book downloads or newsletter signups.
4. Click Through Rate – The Click Through Rate (CTR) describes the frequency with which potential customers click on your marketing presences. Whether it is Google Adwords, a Facebook advertisement or even an email campaign, the CTR measures the number of clicks compared to the number of impressions made by your advertisement. Average Click Through Rates vary from medium to medium. For example, while a typical banner ad on a website may produce a CTR of about 0.5% or lower, the average Facebook ad may produce a CTR in the vicinity of 10%. If your click through rates are surprisingly low, you may want to consider adjusting your ads and call-to-actions.
5. Leads – Generating quality leads means that your business has a greater opportunity of generating sales. Quality leads is the fuel that powers your sales team and understandably, your marketing manager’s role is to generate as many as possible. There are two main types of leads to consider: Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL). MQLs are considered more likely to produce a customer through some sort of opting-in action such as downloading an e-book or white paper. However, SQLs are those leads that have been vetted and are considered to most likely to become paying customers. Understanding how these KPIs relate to each other can help to improve the company’s Leads to Close ratio which is the number of leads received divided by number of leads that you’ve closed.
6. Lifetime Value of a Customer – How valuable are your customers to your business? This is the data that this KPI seeks to provide. With it, marketing managers are able to estimate the value of their customers to their business over the customer’s lifetime. While tracking the lifetime value of a customer may appear to some as counting one’s chickens before they hatch, it is a necessary task as the figure helps marketing managers to estimate the Return on Investment (ROI) for that customer. Estimating the lifetime value can help the marketing team to decide where to spend their money.
7. Sales Team Response Time – One of the biggest factors in making sales is the time between acquiring a lead and acting upon it. If a sales representative can follow up on a lead within a reasonable time period it means that he or she has a greater chance of converting that lead into a sale. Leads do not stay viable forever. In actuality they all eventually degrade over time. Understandably, therefore, it is important for sales teams to attack leads the moment they become available. If your sales team fails to respond within a reasonable time period, your competition may. The good thing is that once you learn that there are deficiencies in your sales team response time, you can take steps towards fixing it.
With so many valuable marketing KPIs available to be tracked, the choice can be daunting. However, the health of your business may depend on you selecting the right ones while letting the less important ones occupy less of your time.
Rahis Saifi always remains passionate towards innovation and his love for gadgets has been exhibited in his writing. His knack to learn more and more had turned him too passionate towards learning. His learning attitude had shaped him as a perfect writer, He writes about technology, gadgets, blogging, smartphone tips and tricks and software reviews.