Marketing KPIs or key performance indicators are vital, pivotal tools that monitor successful marketing performance. They are used to determine which marketing strategies are working, which are not working, and which need refinement. Designed from the ground up to help managers to plot a course of action that will help increase company profitability, marketing KPIs provide a framework for managers to measure and improve their effectiveness as they work toward their company’s larger goals. In short, marketing KPI’s tell the manager exactly what is working and how. If you want to improve your company’s marketing performance, then you’ll definitely want to pay attention to these marketing KPIs.
The most obvious marketing kpi in use by most companies is revenue. Revenue kpis will tell a manager what is generating the most revenue. More specifically, this data is used to determine whether marketing campaigns are yielding the results that were originally promised. This is the holy grail of marketing performance measurement and one that most marketers are willing to pay good money for. Unfortunately, accurate revenue data is hard to come by and if it exists it is usually expensive.
In order to get a handle on which marketing campaign is performing best, a company needs a comprehensive metric system that monitors and records all of the various performance indicators associated with that campaign. The two most important metrics to track are cost per acquisition and conversion rate. Cost per acquisition (CPA) is simply the average cost of a visitor divided by the number of clicks.
Conversion rate, on the other hand, is the percentage of leads that convert into sales. It is often referred to as the true result or ROI, because once a visitor lands on your site they should be able to easily purchase something from you. Both of these metrics are necessary for any B2B marketing program.
A company that lacks both metrics is likely headed towards trouble. Without accurate and comprehensive marketing kpis, a company cannot calculate its true conversion rate. In order for a company to successfully grow and succeed, it must know its financial metrics such as revenue, profit, and loss. If the numbers are inaccurate then it’s likely that the company will fail to take action, and won’t be profitable long term.
In addition to accurate, comprehensive marketing kpis, there are also ones that are more controversial. The red bar and yellow bar charts can often be a source of frustration for many B2B companies. The red bar represents an expensive campaign that has little to no action from a visitor, while the yellow bar represents an effective campaign with high action from a visitor. These marketing is often come into play during initial testing of a campaign. Once the campaign is launched, it’s imperative that an accurate reflection of the campaign can be recorded in order to understand where improvements need to be made in order to ensure the success of the campaign.
There are various ways to calculate the success of a particular B2B marketing campaign. The metrics included in the kit are often determined by the type of business, as well as the target audience, or specifically by the type of campaign, because there are different ways to attract traffic. There are many ways to collect this data, including the creation of marketing kpis, which will include several questions about the visitors, what they were looking at, how long they stayed, what their location is, etc. Data on lead capture and conversion rates are also very important to track. Not only does this allow a company to determine if visitors are receiving the information they intended, but it also allows for the tracking of specific campaigns and their ROI.
Data collection is an important part of using marketing tips for B2B business. Metrics allow for the evaluation of campaigns and the tracking of return-on-investments (ROI). In addition, the kit can also be used for the generation of reports. Typically, reports are designed to provide information on the success, costs and revenues of a specific campaign. This information can prove to be invaluable in making strategic decisions regarding investment, sales and marketing of products and services.