Key performance indicators (KPIs) are metrics used to evaluate the performance of individuals and business processes within a company. Gauging these performances using KPIs reveals to teams and leaders how effective their current strategies are, so they can make the proper adjustments to improve the performance of their business.
Marketing KPIs are especially important because they can be used to evaluate your marketing campaigns, which can be one of the most costly investments, so you’re not wasting resources.
• Cost Per Acquisition (CPA)
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.
• Marketing Qualified Leads
Marketing qualified leads are prospects who have the potential to become paying customers. Therefore, you want to track your marketing campaigns to ensure they are attracting actual targeted leads and not just traffic in general. If the number of qualified leads is high, then it means your marketing efforts are effectively focused on the right audience, which in turn creates a greater chance of increasing your paying customers. Potential paying customers include prospects that your company plans to follow up on, leads that the sales team considers prospective customers, and leads that have been assessed by the marketing team and then forwarded to the sales team.
• Website Traffic Per Source
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 an Adwords 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.
• Net Promoter Score
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.
Marketing key performance indicators are evaluated by marketing agencies using a scorecard, which enables them to track every detail of your campaign from your marketing tactics to your revenue growth to ensure your campaign is working as effectively as possible to help attain sustainable growth. When creating your scorecard, you will first need to decide on the main marketing goal, such as lead generation, brand awareness, sales, or customer loyalty, which will help determine how to rate everything.
Next, you will need to gather up your KPIs from any tracking tools you are using, such as Google Analytics, going back as far as you can, which will serve as the criterion for comparison. The KPI data is then entered into a marketing score software program, which will then generate columns or rows to record your goals. Your actual progress is then compared against your goals, and the results are displayed as a percentage.
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.
There are two types of KPIs: low-level KPIs, which show the performance of specific individuals or departments, thus indicating the effectiveness of your daily operations, and high-level KPIs, which demonstrate the company’s overall performance, including your yearly growth, relative market share, and annual recurring revenue (ARR). Meanwhile, tracking your marketing key performance indicators using a scoreboard can help you further understand your performance in terms of your goals, expressed as a percentage.
There are various KPIs; however, it is important to select the right ones for your particular business to ensure they are most effective.
At Fusion CPA, we have been a supportive partner to various 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. We can also create a marketing scoreboard that helps you better visualize your efforts concerning your goals, so you don’t spend valuable time on wasted efforts.
If this information about improving your marketing performance across all channels has excited you, please contact us. 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.
Contact Fusion CPA to see how we can help you identify and measure the top real estate key performance indicators for your firm.