If you run a business, you should know how to improve your marketing efforts that help achieve your goals. A key performance indicator, shortly known as KPI, lets you measure and determine the performance of your campaigns. Several key performance indicators are available for your business to evaluate the effectiveness of your marketing ideas. As a business owner, you should know how to use them that help obtain optimal results. Metrics allow you to implement the best strategies for your marketing efforts to get the desired outputs.
What are some key performance indicators to follow?
1. Customer acquisition cost
Customer acquisition cost (CAC) is one of the important key indicators that enable you to make important budgetary decisions. It provides ways to measure the amount of money if you want to convert a potential lead into a customer. In other words, it makes feasible ways to know the business expenses you want to spend on attracting customers. On the other hand, you need to decide the time frame while calculating this cost.
2. Lifetime value of a customer
The lifetime value of a customer (LTV) lets you determine the total expected revenue you make from a single customer. You can compare this metric with CAC because it allows you where your money is going high.
3. Conversion rate
Conversion rate is another useful tool that allows you to know how successful you are at attracting leads. It enables you to know the percentage of visitors who visited your website and completed an action. If your website has a lot of traffic but has low conversion rates, then you should implement some changes.
4. Marketing qualified leads
Marketing qualified leads (MQLs) are the key performance indicators to know how many leads generated by your marketing team. Moreover, it allows you to evaluate how many MQLs become sales-qualified leads (SQLs) and then customers.
5. Social media engagement
As a business owner, you should evaluate your social media engagement with more attention that helps make important decisions. Apart from this, measuring your social marketing campaigns allow you to your success rates. They even allow you to make changes in your advertising techniques.
6. Return on investments
You should know the return on investments (ROI) that help know the success of your ad campaigns. It allows you to measure the revenue generated by you that you spend on an advertising campaign.
7. Organic traffic
Organic traffic is an important indicator to consider in your online marketing efforts. You should use some SEO tools for this purpose to know the rank of your website in search engines. This KPI allows you to know the overall organic and SEO strategy. It even allows you to know what type of keywords perform well for SEO marketing.
8. Mobile traffic
As the number of mobile users is increasing day by day, you should know the performance of your marketing campaigns on mobile devices. You can utilize some tools to generate reports on mobile conversions.
9. Customer retention
Customer retention is the most important key performance indicator you should consider in your online marketing campaigns. It allows you to understand your customers better and help choose the best strategies accordingly. You can utilize this KPI to track success for your short and long-term campaigns.
10. Net promoter score
A net promoter score is one of the KPI tools to follow because it allows you to evaluate customer satisfaction. It allows you to decide your business expenses after knowing the feedback and insights of your customers. You should listen to your customers while marketing your product in markets that help improve sales significantly.
