A marketing KPI definition we use is simply: What metrics can you measure that are most important for a specific goal for that quarter? Business teams often get stuck determining what is a KPI in marketing that makes sense to track – it can be overwhelming when you’re faced with long lists to choose from. We’ve compiled a marketing KPI template you can use that is straight-forward and will get you on the right track to reaching your KPI goals.
Whichever marketing KPIs you choose, they should allow your teams and leaders to determine how effective current strategies are, so they can make the proper adjustments to improve performance.
At Fusion CPA, we have been a supportive partner to businesses throughout various industries helping them set effective marketing goals and selecting the right KPIs for them, leading to record-setting results for their business.
The key to a successful marketing campaign is knowing where you stand at all times. KPIs also enable you to gain insight into various crucial factors of your business performance, including historical trends and areas that need improvement, which can then be used to help make better decisions geared towards your future growth.
Low-level KPIs show the performance of specific individuals or departments, thus indicating the effectiveness of your daily operations. This is the kind of KPIs we’ve chosen for our marketing KPI template below. Tracking your marketing key performance indicators using a scorecard can help you further understand your performance in terms of your goals, expressed as a number.
High-level KPIs demonstrate the company’s overall performance, including your yearly growth, relative market share, and annual recurring revenue (ARR).
There are various KPIs; however, it is important to select the right ones for your particular business to ensure they are most effective. Fusion CPA can help your company implement low and high-level KPI tracking. We’re experienced in growing businesses, both in our accounting and business advisory services.
We can help take the confusion and guesswork out of what it takes to create a winning campaign, as well as any other complex financial processes, by using our experience to walk you through the necessary steps.
Apart from the marketing KPI templates we’ve provided with straightforward metrics, your company can also add these KPIs to expand or customize your scorecards:
Cost per acquisition is the cost it takes to acquire a paying customer, which can add up. Therefore, you want to ensure your marketing efforts and the resources spent to acquire them net a decent return on investment (ROI). Using this marketing KPI enables you to contrast the cost it took to convert a new customer to their average lifetime value so that you can measure your campaign’s profitability. The CPA can be calculated by totaling the monthly costs to attract new customers and then dividing it by the number of new customers per month. If your CPA is higher than the customer’s average lifetime value, then your lead acquisition sources are profitable.
You should monitor your website traffic and where your traffic is coming from, such as organic searches, social media, referrals, email marketing, or paid searches, which will help you gauge the effectiveness of your SEO. Knowing the source of your traffic can also tell you what your most profitable marketing channels are. For instance, if you recently ran a PPC campaign, you can use key performance indicators for digital marketing to see how much traffic it’s generating, enabling you to see how effective it is. You can also see the number of repeat visitors and new visitors to help improve your content, especially for organic searches, which enables you to gain targeted leads at no cost.
If customers are unsatisfied customers, also known as detractors, who share their negative experience with your company with others, they can negatively impact your brand’s reputation. Or they can be happy, committed customers, also known as promoters, who promote your business to everyone they come in contact with, which helps increase sales. And then there are unenthusiastic but satisfied customers, also known as passives, who are only committed to your brand until they find something better. The Net Promoter Score enables you to measure the likelihood of a customer or client recommending your product or service to others so that you can improve your customer experience. It can also be an essential sales measurement for other members of your team.
These are just a few marketing KPI examples. In the end, the KPIs you choose will depend on your business, stage of growth, and what phase your project is in. Your KPIs may also change as your company grows.
KPIs for marketing are evaluated using a scorecard, which enables you to track every detail of your campaign – from your budget spend to your revenue growth – to ensure your company stays on the track of sustainable growth.
When creating your scorecard, you will first need to decide on the main marketing goal, such as lead generation, brand awareness, or customer loyalty, which will help determine which KPIs are going to be the focus for the quarter or a specific period. Your goals should be updated once they are reached to remain agile and growth-orientated.
Each week, every team member needs to fill in their scorecard before meeting with their team leader. The KPI data can then be entered into a marketing score software program. Your actual progress is then compared against your goals, and the results are displayed as a graph.