Updated: Nov 4, 2021
Key Performance Indicators (KPIs) help businesses in measuring progress towards various strategic marketing objectives. This fact makes it necessary to focus on the right metrics. Choosing the most suitable marketing KPIs, for your business, helps businesses & marketing strategies to succeed.
A fair observation does suggest that all good marketing KPIs get tied directly to your business growth. There are seven marketing KPIs that helps business thrive & evolve in a competitive world. Let’s have a brief look into all these for a better understanding.
Sales metrics directly reflect your business growth and get measured based on your accounts. Most companies/firms calculate the sales metrics by taking both revenue & costs into account. It helps in analyzing the Customer Relationship Management System (CRM), other checkout systems, or any financial software; a KPI that runs the business forward.
User & Customer Acquisition
Accelerate your base growth and helps with stabilizing the financial metrics. This entity gets measured by the numbers you have from CRM (Customer Relationship Management system).
Quantity & Quality of Leads
This Key Performance Indicator (KPI) works well with a subscription-based business. It reflects how effective your marketing communication is. The leads attract users who buy something from you; in-effect driving your business forward! Helps in knowing more about the customer base and sales growth.
The lead quantity gets figured out based on your CRM. However, the lead quality tracking needs more planning. Developing an automated system that detects all your leads based on data-in-hand helps with this KPI.
Customer Lifetime Value (CLV)
CLV is a metric that estimates how much money an individual customer brings into a business by buying their products/services. A basic formula is used and businesses strategize based on CLV; a good KPI to consider!
Share of Voice (SOV)
This KPI is a measure of your advertising share as compared to your competitors. An excellent marketing KPI as it facilitates a strong relationship between SOV and market share. Once the SOV gets higher than the market share, you create an excess SOV (eSOV). It is measured via organic or paid searches and also through organic social media & TV ads.
Brand Awareness Metrics
For measuring this KPI, two things are necessary: saliency & positioning. Proper market research gets done and analyzed accordingly to improve brand awareness.
Net Promoter Score (NPS)
This KPI measures customer satisfaction & loyalty. NPS score gets calculated based on formula & ranges between -100 to +100. Anything above Zero is considered to be a good thing for business. It gets measured via qualitative data.
These KPIs worth tracking help businesses grow, evolve, and be the best among their competitors!