Surely you know that without a correctly defined goal and monitoring whether it has been achieved, it is impossible to conduct marketing activities. After all, you can’t say that a campaign was effective without any evidence of it. Moreover, seemingly beneficial advertising does not always produce the expected results, as it may, for example, generate low-quality leads for which your offer is not tailored. In controlling the results achieved, you should track and analyze marketing indicators. Learn about the 10 most important indicators that are useful in marketing.
What are Key Performance Indicators?
Key Performance Indicators (KPIs) will make it easier for you to determine the goal you intend to achieve and to observe whether the actions you are taking are effective. With the help of KPIs, you will monitor the progress of your marketing campaigns and see if, within a certain period of time, the set goal was achieved. There are various KPIs, but you don’t have to take them all into account for individual activities.
These indicators are worth paying attention to
Of course, there are many KPIs that we could list in this article, but we will focus on the most relevant ones:
Return on Investment (ROI)
ROI is used to assess whether an investment was profitable. In the case of a marketing campaign, this can be used to calculate whether the expenses incurred for the campaign exceeded the profits. The formula for ROI is extremely simple:
If the result is positive, then the investment has paid off. Want to learn more about ROI? Read our article on calculating ROI from MA by clicking here.
Cost per click (CPC)
This indicator will show you how much you will pay for a single click on your ad. Here is the formula for the average cost per click:
Click-through rate (CTR)
CTR determines how often people click on your ad when it is displayed to them.
Conversion rate
The conversion rate shows what percentage of people are interested in a campaign and have taken a specific action. For example, if you define a conversion as filling out a form on a page, the conversion rate will be the number of forms filled out (the sum of actions taken by users) divided by the number of people who clicked on the ad and went to the specified page.
An indicator for evaluating customer satisfaction (NPS)
NPS surveys are used to measure the evaluation of customer loyalty to a company or a specific product or service. The respondent selects a specific value from 0 to 10 by answering one question. In iPresso, you can set additional questions to display when a specific value is indicated, so you can find out what caused the customer’s dissatisfaction or what things they liked best.
Cost of acquiring a lead (CPL)
This indicator allows you to calculate how much the company spent to acquire a lead (i.e. a potential customer – a person interested in the company’s products).
Customer lifetime value (CLTV or LTV)
This is the amount of revenue that a particular customer generates for the company over the course of the relationship. The LTV indicator is useful especially in B2B relationships, where you enter into a long-term contract, often building a long-term relationship with a customer. In a nutshell, the customer lifecycle formula looks like this:
Customer retention rate
This ratio determines whether a company has gained or lost customers over a given period of time.
Message deliverability rate
The deliverability rate allows you to see how many recipients you managed to deliver the message you sent. If the email deliverability rate is low, it means that for some reason a large part of the message does not reach the recipients (for example, due to an outdated database with addresses that are no longer active).
Customer churn
This is an indicator that shows how large a percentage of people have churned at a given time. Of course, every once in a while there may be users who cancel your services, but if the customer churn rate often stays high, it’s a signal that you should react before you lose most of your customers.
Why are KPIs so important?
When launching a new marketing campaign, you certainly sometimes thought at first that it would be a hit. The problem is that the budget was swallowed up in an instant, and somehow your business didn’t continue to take off. Without KPIs, it can be difficult to set a target and monitor results, and you won’t even know what went wrong. KPIs will show you what areas you need to pay attention to and how you can improve specific activities.
Summary
Key Performance Indicators will allow you to measure whether your campaign is effective and in which areas you need to improve. With KPIs, analyzing whether specific goals have been achieved will not be difficult. Only by properly analyzing the results are you able to accurately assess which activities need improvement and which campaigns to focus on in the future.
Looking for tools that will make it easier for you to collect data and measure results? Try iPresso and find out that marketing automation is for you!
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