Key Performance Index a.k.a KPI is a term well understood by business holders and corporate individuals. For all those who do not know what Key Performance Index (KPI) stands for, it is quantifiable and measurable action that indicates the performance of the individual. In this context, the idea is to understand the KPI of our own marketing campaigns. Gauging KPIs is a calculated way to understand how effective your marketing is. Your measurements in various aspects determine your Key Performance Index. In the age of stats, what is it that determines whether your strategy is matching up with the expectation of the brand? Below are the five main indicators that you must track to understand if you are meeting your brands desired KPI.
1. Sales Growth
The first and foremost indicator of any business growth is sales. When analyzing your Marketing KPI, do you see a growth in your sales number? If yes, it pretty much means you are headed in the right direction. Keep doing what you have been doing. If no, it is time you stop and understand what part of the sales process you follow needs to be updated. Sales are the key indicator of a businesses’ performance. More the sales, better the business expansion. Does your marketing enable sales growth?
What is the difference between sales and leads? It is called sales when the business approaches the prospect by any possible means. Lead is when the prospect reaches out to the business showing interest. Leads could be generated through various sources depending on the brand presence, word of mouth or paid search results. Whatever the source be, the main question here is, does your marketing strategy or plan attract the desired or expected set of leads? If yes, how many leads are organic and how many of them are through paid sources?
3. Cost of Customer Acquisition
Sometimes, we do not realize how much we put in while we expect returns. Cost of Customer Acquisition or COCA is a technique to measure how much do you invest to get in a particular sales or lead. Let’s just assume you spent $200,000 on sales and marketing every month and that has helped you close 20 new customers that particular month, then your COCA would be $10,000. Now what you have to analyze here is that is the acquisition worth the amount spent over it? If yes, you are on track.
4. Website Traffic – Lead Ratio
What goes without saying is that in the digital age, every business is turning digital. Today, if a brand doesn’t have their website, its authenticity is the main concern then. Your businesses’ website speaks volume about your offerings. Make a check if your website traffic is adequate. There are pixels that must be integrated in order to check the website traffic. Once you have a responsive website with good traffic on it, the next milestone is to address the question, ‘how many out all the people on the website are converted into leads?’
5. Blog Post Visits
Blog reads are the best way to engage your visitor on the page. Be it blogs on social media or website, the more the person spends time reading your content, the more you understand what your customers like reading (topics), when in the day (time) and where are they from (understanding their location)? As much as the frequency of your content is important, so is the quality of it. Make sure you create write-ups that are worth your reader’s time. Are you sharing content that makes people spend a few minutes reading it? If yes, your marketing strategy is bound to work.
William Thompson wisely said, “You can’t measure it, you can’t improve it.” Start measuring your KPIs for an optimum and diligent marketing outcome. It is ideal we make a shift and gauge our marketing through the ‘SMART’ way. It is a detailed and logical breakdown of how things can be measured for the best results. It’s time we make a move from ‘Marketing’ to ‘Smarketing’.