It’s the lifeblood of any business, and without it, you’re unlikely to survive. Marketing, in a nutshell, is absolutely essential for nearly every company on the planet.
However, it’s not enough to just have an effective marketing strategy. You need to be able to measure the success of your campaigns and strategies to see if they’re working and most importantly, work to optimize them.
This is where KPIs, or Key Performance Indicators, come in. These are metrics that allow you to measure the overall effectiveness of your campaigns and strategies, enabling you to make informed decisions about your marketing efforts.
Here are five must-track KPIs for successful marketing:
Cost per Acquisition (CPA)
This KPI measures the cost associated with acquiring a new customer. It’s calculated by dividing the total cost of a campaign (including both direct and indirect costs) by the number of new customers acquired.
This metric is particularly useful for evaluating the effectiveness of your marketing campaigns, as it allows you to measure how much you’re spending to acquire new customers.
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The conversion rate measures the percentage of website visitors (or even in-store visitors) who complete a desired action, such as making a purchase, signing up for a subscription, or filling out a form.
It’s calculated by dividing the number of conversions (e.g. sales) by the total number of visitors. A higher conversion rate is typically an indication of a more successful campaign, as it shows that your marketing efforts are resonating with your audience.
Customer Lifetime Value (CLV)
Next up is Customer Lifetime Value (CLV). As the name suggests, this indicates how much each customer is worth to your business over the course of their relationship with your company.
This metric is calculated by multiplying the average purchase value per customer by the average number of purchases they make in a given period. The higher the CLV, the better as it indicates that your customers are spending more with your business over time.
Unfortunately, this can be one of the more difficult metrics to master and you do need to have a thorough understanding of your customers and how they spend with you. However, get it right, and it can allow you to make much more complex and shrewder marketing spend decisions.
Search Engine Rankings
Again, the name gives it all away here. Your search engine rankings measure the position your website appears in the search engine results for a given search query.
For example, if you’re looking for a website about marketing, and your website appears on the first page of the search engine results, that means your website is well-ranked for the query.
Nowadays (particularly if you are going after a marketing search term such as the above), this is a highly competitive industry. Nevertheless, every click you receive is effectively free, which is in stark contrast to other channels. There are numerous London SEO Services that can aid your efforts here.
Social Media Engagement
Social media engagement measures how much interaction your content is receiving on social media platforms, such as likes, shares, and comments.
This metric is useful for evaluating the effectiveness of your social media campaigns, as it allows you to gauge how well your content is resonating with your audience. Of course, you need to make sure you’re picking the right metrics to start with. After all, a particular campaign could receive thousands of likes – but what does this really mean for your business?