You won't truly succeed with your marketing efforts if you can't adequately measure results. Trackable metrics, or key performance indicators (KPIs), can help you identify what's working and requires improvement in your campaigns. They can also help you determine what steps you need to take in the future to more effectively achieve your business goals.
However, to successfully manage and track your campaigns, you need to know which metrics are worth following. The types of KPIs you look at will depend on your goals, including building brand awareness, engagement, or sales, among others.
What Are Marketing Metrics?
You may be wondering: what are KPIs, exactly? Marketing metrics are quantifiable variables that marketers can track and measure to gauge their campaigns' performance. To facilitate growth and success, marketers must know which metrics to follow based on their unique campaigns. Businesses can monitor and track many types of marketing metrics to help measure success, making it important to identify the most relevant ones.
KPIs You Need to Know
Depending on what you want to achieve with your campaigns, you can choose from many key performance indicators for marketers. The following are some examples of marketing metrics that you can track throughout your campaigns.
Also known as qualified prospects, qualified leads are potential customers or clients compatible with a company's target audience. These leads haven't contacted your business yet, but they will be more likely to do business with you over competitors. Acquiring leads is often a goal for many companies, but it's essential to ensure qualified leads.
Another critical marketing metric to keep track of is bounce rate, which is the rate at which people immediately leave your website as soon as they visit. A high bounce rate indicates that people either find your content irrelevant when searching for certain information.
It may also indicate that your content is generally unhelpful and fails to give them actionable information. Another potential problem that leads people away could simply come down to a poor user experience due to inadequate design. If you discover that your bounce rate is high, you may want to take steps to either optimize your website or improve targeting efforts.
If people visit your website and don't simply leave, you'll want to know precisely how long they're staying, which you can determine by looking at the time spent on your site. You may find that people view multiple pages as they seek new information, giving you an idea of the path people take on your website.
For example, you might see that a visitor went from one of your landing pages to a particular service page and moved to contact you shortly thereafter. This helps you determine if your website brings value to people and brings them through the sales funnel.
Customer Acquisition Cost (CAC)
The customer acquisition cost is the amount you spend persuading customers to make a purchase. CAC will help calculate the total amount of money spent on converting leads into customers, which can help you better determine whether your efforts are truly profitable. For instance, if a business spends around $100,000 on annual marketing that leads 2,000 people to become customers, that company will have yielded a CAC of $50.
The conversion rate is arguably the most important marketing metric to track. As more people contact you, you'll want to make sure those people convert into customers. If your marketing efforts fail to convert leads, this means you're wasting time and money on ineffective marketing and sales efforts. You need to make sure your conversion rate is sufficient to help you generate profits.
Why Tracking and Evaluating KPIs Is Essential to Your Business
Tracking KPIs and evaluating them is crucial if you want your business to succeed. You can use many KPIs to help measure your success, including everything from conversion and bounce rates to CAC and many others. Based on your campaigns' performance, you can compare the results to your goals and figure out how to better optimize campaigns to produce positive marketing ROI.
What Is the Cost of Ignoring Marketing Metrics?
One of the biggest mistakes marketers can make is to ignore marketing metrics. If you're not looking into your campaigns and figuring out precisely how they're doing, you'll be in the dark about how your business is actually performing. As a result, you may find that you're spending more than you're bringing in at a point when it's too late to reverse this imbalance. Be sure to take the time to set specific goals for your business and identify which metrics you need to track before launching your campaigns.
Experience True Success by Tracking KPIs
If you want to give your business the chance to excel in your industry, you must effectively select, track, and analyze the right marketing metrics. Otherwise, your company could suffer and fall behind the competition. To help make sure your marketing plans remain consistently effective, consider turning to a dependable media partner. A helpful partner will determine which metrics to track based on your goals and help measure them with in-depth analytics.