Set up Strategic KPIs
Imagine this scenario: First thing tomorrow morning, you call your marketing team into an impromptu meeting, and asks for a report of their marketing efforts. What numbers be looking at? What key performance indicators (KPIs) would you be searching for?
No need to overthink – just get prepared. Learn how to set the right goals to measure and demonstrate the effectiveness of their efforts. There are a number of meaningful lead generation metrics you can use to prove the effectiveness. Here are 10 KPIs every business owner should be measuring:
Number 1. Sales Revenue
You need to ensure that you can report that your sales revenue exceeds the expenses your marketing campaigns incur. Remember, reporting for the sake of reporting is pointless. Reports should lead to increased profits. This is the main difference between a proactive, results-oriented team and a backward-oriented marketing team.
Number 2. Cost Associated Per Lead Acquisitions
How much is it costing the business to acquire each lead? How many leads are generated by each one of the marketing campaigns, and what’s the value of those leads? Consider this hypothetical breakdown of one company’s marketing campaign costs, leads, and value:
Notice that while the tradeshow was the most expensive, it generated the highest quality leads (valued at $50,000 each), but only $500,000 in annual revenue. On the other hand, the website cost half as much, but it generated much lower quality leads (valued at an average $250 per lead), and was responsible for almost $2 million dollars in annual revenue. Lastly, the webinar generated higher value leads than the website but lost money. A company in this situation might decide to reconsider their investment in webinars.
Number 3. Customer Lifetime Value
A customer’s value to your organization is only as good as the time they spend as your customer. What is your churn rate? And what are you doing to prevent churn? You need to know your churn rate and actively do things to reduce churn. To prevent churn, you need a 360-degree view of your customer, and to constantly be monitoring customer satisfaction and usage of your product.
Number 4. Online Marketing ROI
Reporting and analytics are huge here. Having the ability to see and understand website activity, as well as where the traffic is coming from, is vital to your business success. Once you have tools in place to analyze this data, you can optimize traffic sources that result in more lead traffic, ultimately increasing conversions on your site.
Number 5. Site Traffic: Lead Ratio
There are four important metrics to look at when it comes to your site traffic to lead ratio.
Unique visits to your website
Marketing Qualified Leads (MQLs) from website conversions
Conversions per site visit
Conversion by source
To drill down to a more granular level, you should break these metrics down by campaign, revealing which campaigns are most effective.
Number 6. Marketing Qualified Leads: Sales Qualified Leads
Once a lead has met all of your marketing team’s criteria and is considered a Marketing Qualified Lead, your sales team needs to accept the lead as a Sales Qualified Lead. If the lead is not accepted by sales, the lead is put back on marketing’s radar. It is important to know the ratio of leads that get thrown back into marketing’s funnel, as well as leads that are accepted by sales. Once you know this, you can address any disconnects.
Number 7. Form Conversion Rates
Is the business content marketing effective? Are the marketing efforts to drive traffic to those landing pages working? Your marketing team should always be optimizing your landing pages and content placement, utilizing A/B testing to improve conversion rates.
It is always important to continuously A/B test. The same landing page that resulted in fewer conversions in September actually out-performed Landing Page B in October. Remember to stay on top of your A/B testing.
Number 8. Organic Search
There are 4 primary metrics you need to monitor:
The percentage of leads that come from organic search.
The number of customers you acquire via organic search.
The percentage of leads that come in using branded keywords.
The percentage of leads that come in using other terms.
SEO and offline marketing play a role here. What is it that causes someone to search for your product for the first time? Was it a billboard on Highway 101? Also, does the content on your website actively reflect what you are selling?
Number 9. Social Media Reach
How many customers are you acquiring with Facebook, Linked In, Twitter, TikTok, etc.? If you know how well each channel is working, you can more efficiently and effectively focus your social marketing.
Number 10. Mobile Traffic
We live in an increasingly mobile world. As such, it’s important that we know the amount of traffic coming in from mobile devices. You need to have tools enabling reports on mobile conversions. For instance, you may decide to contribute more of your marketing dollars to responsive design templates.
So the next time you request a full report, make sure you have a handle on these 10 key KPIs. Armed with these metrics, you’ll be able to see what type of marketing is delivering qualified leads to sales. Optimize your marketing budget next time and ensure that your marketing team gets the biggest bang for your buck.
If you would like guidance reach out to me…
Email Me: email@example.com
Text Me: (956) 369-9783
Visit my Contact Page: immisterbrands.com/contact-mister-brands