The Marketing KPIs Your Team Should Be Tracking
Many companies might see marketing as a “nice to have” item instead of a mission-critical part of their business. Marketing, especially traditional marketing methods like TV commercials and radio/print ads, tends to have a high cost and an ambiguous return on investment (ROI).
For example, according to fitsmallbusiness.com, “a 30-second spot broadcast nationally averages around $115,000 in 2019… 30-second Super Bowl ads can go for upward of $5.25 million.” This doesn’t count the cost of actually writing and filming the commercial! Worse yet, the returns on these ads are diminishing because many people simply ignore or skip them.
However, not all marketing has to be a big and expensive TV spot that most viewers will skip. Digital marketing has created a new dynamic for advertising a company’s goods and services.
To measure the success of digital/online marketing efforts, it’s important for businesses to track their marketing key performance indicators (KPIs) and use that information to modify their marketing over time.
What are key performance indicators?
Key performance indicators are data points that are used to assess how well an entity is performing. They are expressed as some kind of value and measured against a goal for that KPI (which is usually based on past performance data).
Tracking key performance indicators is a pretty common practice for all kinds of businesses. However, not every KPI is created equally for every job and role. There are many different kinds of key performance indicators that companies may want to track that may or may not be applicable to a particular team or department.
For example, the KPIs used to track the efficiency of a manufacturing team (parts made per hour, rejection rate, machining equipment uptime, etc.) would not be applicable for a sales or marketing team.
Why should a marketing team track their KPIs? What are some good marketing KPIs for a business to track? How can businesses track digital marketing KPIs?
Why should marketing teams track KPIs?
There are numerous reasons that businesses should be tracking their digital marketing KPIs. Here’s a short list:
- Because it helps establish marketing ROI. One of the bigger challenges of marketing efforts is determining their ROI. If the ROI for an activity is unknown, it’s difficult to determine whether that activity should be continued or cancelled. Tracking marketing performance metrics like total lead generation, cost per lead, and customer lifetime value can help marketing departments determine whether the ROI of their efforts is positive or negative.
- To determine what does and doesn’t work. Tracking the performance metrics of a particular marketing campaign is crucial for determining if it’s working. Digital marketing often makes it easy to track engagement with a marketing campaign by monitoring email open rates, clicks on call-to-action (CTA) buttons, and even webpage visits for any given campaign (assuming, of course, you have the right tools to collect that data in place). This can be useful for modifying future marketing efforts based on what did or didn’t work.
- To identify issues causing potential customers to leave. Is there any particular point in a marketing campaign where an abnormally large number of leads unsubscribe or stop engaging with the company? Identifying these critical failure points, and the reasons for the loss of customers/leads, is crucial for ensuring future marketing success.
In short, knowing which marketing metrics to track and then monitoring them can help companies improve their marketing efforts.
11 marketing KPIs your team should be tracking
So, what are some examples of marketing metrics that businesses should be tracking? Here are a few digital marketing KPI examples to keep in mind:
1. Customer lifetime value.
How much is a customer worth to the company, on average, over their life with the company? This can help companies regulate their marketing spend.
2. Cost per lead.
How much does the company spend on marketing efforts versus the number of leads generated? Generally determined by dividing the cost of marketing by the number of leads generated.
3. Total number of leads per day/month/quarter.
How many leads does the company generate from digital marketing efforts over a given period of time? This can provide a general sense of how appealing the company’s marketing is.
4. Leads by source.
How many leads are generated from email, online ads, social media, the company website, blog posts, etc.? Shows which channels are the most successful for generating leads.
5. Website traffic.
How many unique IP addresses visit the company’s website each month? This can be sorted by traffic source for more detail (organic, direct, referrals, ads, emails, etc.).
6. SERP rankings.
How highly does the company’s website pages rank on search engine results pages (SERPs)? This directly impacts how likely people browsing the web are to find the company’s website.
7. Featured snippets.
How many “featured snippets” does the company website have in SERPs? Featured snippets provide viewers with answers to basic questions and are shown at the top of SERPs—even above the #1 ranked post for a search.
8. Number of backlinks.
How many other websites are linking to the company’s website? Having more backlinks indicates a site with high-quality, authoritative content that Google and other search engines will rank highly.
9. Email opens.
How many people open the emails the company sends out? Provides an indication of the quality of the company’s email list and the subject lines individual emails use.
10. Email deliverability.
How many emails get sent successfully to a targeted recipient versus being sent to spam folders or simply failing to be delivered because of bad email addresses? Failed deliveries can negatively impact future email marketing, so any email list needs to be regularly scoured for bad/defunct email addresses.
11. Ad cost per click (CPC).
How much does each successful click on an online ad cost the company? Cost per click can help establish the ROI of online ads while helping marketing departments stay on-budget.
The examples of marketing metrics listed above are just a few of the KPIs that may be valuable for a marketing team. There are many more that a company might use depending on their marketing goals and the specific types of digital marketing they focus on.
Easily monitor your marketing KPIs with BrightGauge
How can your business easily monitor its digital marketing KPIs? There are a lot of tools that you can use to collect data, but how can you easily keep track of varying datasources like ConnectWise and others?
BrightGauge is here to help!
Our digital dashboards give BrightGauge’s customers easy access to multiple data feeds—allowing them to track their marketing KPIs in a single convenient place.
Timed reports allow users to easily collect weekly, monthly, or quarterly marketing KPI data for easy reporting. Bring your marketing results to the attention of the board (or others) to showcase the ROI for your marketing efforts.
We think that our dashboards and reports can be a real game-changer for marketing teams. They save time, increase accountability, improve transparency, and make marketing efforts more efficient by showing what is or isn’t working.
Want to learn more about how you can track your marketing metrics and other important KPIs and improve your business? Reach out to the BrightGauge team today!