Just imagine that you reach at your workplace and your executive team calls a meeting to report on your marketing efforts. What measure would you give them?
Calm down! Do not panic. It was just an imagination.
To be always prepared for this inquiry learns how to set to measure and demonstrate the efficiency of your campaigns through this article. I will discuss with you some of marketing KPIs that will help you to keep your strategy on track.
1-Traffic-to-Lead Ratio with Marketing KPIs
Analyze your traffic, especially knowing the source where it is coming from, whether it is direct, referrals, social media or organic.
If the traffic to lead ratio is low despite the fact that traffic is increasing then there is defiantly missing something on the page.
2-Lead-to-Customer Ratio
It is important to sort out that after all your marketing efforts how many leads is able to close. You need to calculate sales qualified and sales accepted lead conversion rates.
Figure out the answers to these questions
Is your campaign capturing lead?
Do you have a high close rate?
Your CRM is converting qualified leads at the right times to sales?
If the answers to the questions are not in your favor determine how you can put up new plans to improve your sales.
3-Cost per Lead
Calculate your customer acquisition cost for both inbound and outbound marketing. Compare the cost of these two. To calculate your customer acquisition cost along with calculating of all relevant costs you need an integration of automated marketing platform and CRM associated with your ERP system.
Calculating the cost associated with inbound and outbound marketing campaigns you can determine the account for new sales along with the budget for each campaign.
4-Sales Revenue
If your company is utilizing inbound marketing, break down the component by types to assess the profitability of each activity. To know the effectiveness of inbound marketing campaign understands the value of sales revenue.
Who wants to spend money on something that is not generating any profit in return? If a campaign is not generating money then you would most likely move to other marketing activities.
5-Customer Value
Customer’s value is another metric to have an idea about how to plan your campaigns for the future sales. To know the customer’s value reaches out your current customers. This will help you to keep a track of lead. Use the following calculation:
Lifetime value= (Average sale/customer) x (Number of times a customer buys / year) x (Average retention time/year)
Develop lead nurturing campaign to expand customer’s lifetime value.
6-Marketing ROI
Calculating your marketing return on investment provides you a big help to assess your performances on the monthly or yearly basis. I am stating a formula to calculate your ROI:
ROI= (Sales increment – Marketing investment) / Total
Your return on investment will determine the future of your marketing activity you are going to carry out.