Marketing KPIs – best practices
What is a marketing KPI?
It is a measurable value used by organizations to evaluate the performance of a marketing campaign, as well as to monitor the progress towards their goals. It is very helpful to companies as it makes them understand how effective or successful they have been at reaching their targets.
In this article, we will cover all KPIs – from digital marketing to content marketing to email marketing and more! If you manage to track the right marketing KPIs, your company will be able to make the right improvements on time and adjust its marketing strategies and budgets.
Customer lifetime value (CLV)
Are your customers profitable?
Customer lifetime value is the total worth to a business of a customer over the whole period of their relationship. Pay attention to this metric, as it can show if it is better and cheaper to keep existing customers than it does to acquire new ones. You can drive growth if you’re increasing the value of your existing customers.
If you want to best calculate your CLV, look at the total average revenue generated by a customer and the total average profit. This provides insights into how customers interact with your business and if your overall marketing plan is working as expected.
For a more in-depth look, you may want to break down your company’s CLV by quartile or some other segmentation of customers. This can give greater insight into what’s working well with high-value customers, so you can work to replicate that success across your entire customer base. The higher your CLTV the better.
Average Revenue Per Unit (ARPU)
Are your selling/subscriptions profitable?
Average Revenue per Paying User (ARPPU)
What is your average revenue per paying customer?
Cost per Acquisition (CPA)
Are your customer acquisition costs viable?
Cost Per Acquisition, or “CPA,” is a metric that measures the total cost to acquire one paying customer. It should include the cost of marketing campaigns, or other any other costs spent to get a new customer.
This metric is usually calculated alongside the average customer lifetime value (CLV), return on investment, or cost per action. These three combined will let you know how well you’re doing with your marketing budget. This can also help you with various business decision-making.
Important CRM Metrics
Marketing Qualified Leads (MQLs)
A Marketing Qualified Lead (MQL) is a lead who has indicated interest in what your business has to offer based on marketing efforts or is otherwise more likely to become a customer than other leads. Example: Downloading trial software or free e-book
This metric is usually calculated alongside the average customer lifetime value (CLV), return on investment, or cost per action. These three combined will let you know how well you’re doing with your marketing budget. This can also help you with various business decision-making.
Hand raisers
“A hand-raiser is a prospect who indicates interest in a company by offering their contact information — typically in exchange for some sort of collateral like a virtual content offer or a free consultation.”
A hand-raiser is a prospect who is a volunteer to give their contact information. As soon as someone gives their email address or phone number, you know you’re dealing with one.
Opportunities
A sales opportunity is a source of potential business – the “opportunity” to offer your product or service to an interested individual or business, and represents an “opportunity” for revenue. Generally, an opportunity is generated either by:- A lead
- or a potential customer
- An existing customer, who has done some form of business with you in the past, and is returning for additional products or services.
Pipeline Opportunities
Pipeline opportunities are indicating the opportunities that are being worked on by the Sales team.
Lost Opportunities
It occurs when a lead (a potential customer) is not contacted. It is optimal to have a low ratio of missed opportunities.
Won Opportunities
Won Opportunities shows the count of sales opportunities that are closed and won. Closed and won is the stage at which a deal or proposal has been signed or electronically accepted and is now considered fulfillable. Won Opportunities apply to both new and existing customers.
Won Revenue
Won revenue shows the revenue coming from won deals.
Lost Revenue
Pipeline Revenue
Lead to Opp Rate & Lead to Won Rate
Opp to Won Rate
Opp to Won Rate indicates the percentage of leads that converted into a lost opportunity.
Website tracking
Pageviews
A page view is an instance of a page loaded in a browser. A page view is a metric defined as the total number of pages viewed. Repeated views of a single page are counted.
Sessions
A single session is a period of activity completed by a user. Google Analytics records a new session every time someone visits your website.
Users
A single user is an individual who visits a webpage or a website. Every new user gets a unique ID that’s stored in their browser cookie, which lets Google track and identifies their sessions.
Visits
It refers to the total number of visits your website got during a certain period. It might be something very simple, but also very important, because it can show you whether certain content or methods were successful or not.
Goal Completions
The Goal Completion Rate (GCR) metric measures the number of people that complete a specific marketing goal (example: such as signing up for a trial or subscribing to a mailing list). It is used extensively in website optimization and A/B testing, since it is a leading indicator of how well your website resonates with your target audience.
Avg. Page on Time
The time-on-page for a web page is calculated by the time difference between the point when a person lands on the page and when they move on to the next one. Clicking a link to another page on the website is the trigger that causes the time spent on the previous page to be calculated. If the person exits the website without going to any other page, then the time-on-page is zero.
Avg. Session Duration
Session duration is defined as the time frame during which there are regular active interactions occurring between a user on a website. The session is timed out when there is no activity from the user for a predefined time duration (30 minutes by default). Session duration takes into account the entire time that a person spends on a website.Bounce Rate
Bounce Rate is defined as the percentage of visitors that leave a webpage without taking an action, such as clicking on a link, filling out a form, or making a purchase.