Marketing Key Performance Indicators (KPIs) are metrics that help track the effectiveness of marketing efforts in a company. KPIs are important for improving your company’s performance.
Main Marketing KPIs To Track
- Return On Marketing Investment
Return On Marketing Investment (ROI) measures how much revenue a marketing campaign brings versus investments made into running that campaign.
It is a vital marketing KPI that shows the effectiveness of your business, makes it possible to plan strategies ahead and to get a grip on tendencies that are specific for your business. In order to succeed, sales revenue must be higher than your marketing campaigns’ investments.
- Customer Acquisition Cost (CAC)
Customer Acquisition Cost or CAC is a metric that measures the cost of acquiring a customer in a certain period. The amount of money you invest in gaining a new customer (CAC) should be less than the amount of money a customer brings to you (CLV).
We have a detailed article that explains why it is important, how you calculate it and how you can improve your CAC.
- Customer Lifetime Value (CLV)
Customer Lifetime Value or CLV is a metric that represents the amount of money a business can expect to attribute during the whole period of a relationship with a customer. CLV always has to be higher than CAC, otherwise, your business won’t have any profit. This metric is important for the health of your business model. Explore some tips on how you can improve your CLV.
- Website Unique Visitors
A website is a valuable source of information for your potential customers. By systematically tracking the number of unique visitors to your website you can see how different marketing efforts change the dynamic of visitors to your website.
A unique website visitor is a person that enters a website once during a reporting period. For instance, a person visits your website 5 times during the month. However, only the first visit among those five will be counted by Google Analytics as a unique one.
The goal of marketing key performance indicators is to track, adjust and improve your marketing efforts. Constant tracking and improving your marketing KPIs improves the quality of your business decisions.
If you are not hitting the benchmarks you’ve set, something might be wrong in the workflow. KPIs show which part of the marketing strategies must be adjusted and often offers an answer on how to adjust it.