Digital Marketing KPIs

Measure Your Marketing Success with Confidence

As a marketing professional, someone in the marketing space, or a key player that works with marketers, you’re likely aware of different ways to assess success when it comes to your company’s marketing campaigns and strategies. Even if these measurements aren’t always said by name (or acronym), it’s probable you talk about sales through marketing, customer conversions, marketing spend, and so on.

With that said, if you want to ensure your marketing team is hitting the mark(s) and knows all the most important and telling marketing KPIs, look no further. In this blog, we’re giving you our top 10 marketing KPIs that we think marketers, marketing teams, and other key players should be aware of. These help us (and can help you) ensure your company’s marketing efforts are working.

Marketing KPIs, or Marketing Key Performance Indicators, are measurements that help you gauge the success of your tactics and make business decisions. Without specific measurements like these, it can be difficult to stand back with the full picture in view.

If you want to strategize and execute quality marketing tactics, it’s important to pay attention to KPIs – especially those that help you build a quality marketing framework and set of plans. With the right KPIs in focus, your business can identify which practices are working, which are not, and which ones have the biggest impact on your goals.

Sales Revenue

Although “Marketing” isn’t in the title of this metric – knowing sales is key to understanding if your marketing tactics are working. “Reporting for the sake of reporting is pointless. Reporting should lead to increased profits.” Your sales revenue should be higher (if not much higher) than your marketing expenses.

Return on Investment (ROI)

ROI = (Sales Revenue – Marketing Investment) / Marketing Investment

Although it’s not the only metric to focus on, return on marketing investment is very important to keep track of. This is a general KPI that helps you understand how to go ahead with your marketing budget and plans.

Although this metric is important, it’s not the most cut-and-dry. What do we mean by this? Often, sales members must turn your marketing leads into successful customers to have a successful ROI. Additionally, “it can be hard to directly attribute sales growth to a marketing campaign.” If so, “subtract your average organic sales growth and marketing cost from your sales growth and then divide it by your marketing cost.”

Marketing Revenue Attribution

This metric measures the revenue that your marketing campaigns have brought to your company. It’s key, because it helps you understand if and how much your campaigns are contributing to your overall revenue. To better understand attribution as a whole, check out this Strata YouTube original video.

Customer Acquisition Cost (CAC)

Spend / Customers = $CAC

This measurement is the total cost of acquiring a single customer and includes both sales and marketing costs. It’s important to calculate this cost for all marketing tactics – including outbound, print, digital marketing, and so on.

If the CAC is too high, you may want to reevaluate your tactics, focus on specific ones, and stop conducting practices that don’t acquire customers.

Customer Lifetime Value (CLV)

Specific Calculation: Spend x Expected Years = CLV

Generic Calculation: CLV = Avg. Sale Per Customer x Avg. # of Times a Customer Buys Per Year x Avg. Lifetime of a customer

The CLV is an estimate of the total revenue expected from just one customer over their entire relationship with your business.

This metric is also not as cut and dry as other measurements, as it’s usually (as stated previously) an estimate, but it can really aid in business decisions and help you decide where it’s best to use your marketing and sales resources, and what resources are most important.

Additionally, the more revenue you can get out of existing customers, the more you can put into acquiring new ones, so understanding this metric can give you a better idea of where to focus your budget (whether that’s customer retention tactics and lead nurturing campaigns, customer acquisition strategies, or something else).

Conversion Rates

A conversion rate is the percentage of potential or current customers that complete a desired action – whether that’s filling out a form, providing an email, clicking through to a company page, adding items to a cart, or buying.

For example, if out of 100 website visitors, 20 make a purchase, your conversion rate is 20%.

As mentioned, a conversion rate can be a measurement of many things, including:

  • Purchases
  • Ad Clicks
  • Website Visits
  • Follows
  • Sign Ups
  • Email Opens
  • Social Media Engagement

High or low conversion rates can help you decide where to allocate marketing spend, what practices to continue, and what marketing tactics to possibly stop all together. Additionally, A/B testing can always help you to understand what causes conversions, so if you’re unsure why something isn’t working, always test first.

Churn Rate

This metric is the rate that customers drop off from buying your products or using your services. For example, if your business has 30 regular clients, and 3 stop working with you (over the span of a year), your company’s churn rate is 10%.

A high churn rate is obviously a negative thing, but a churn rate in general, is bound to happen. No matter how hard you try, it’s unlikely you’ll keep all your customers forever.With that said, a high churn rate can call for larger conversations and big changes for marketing and sales tactics.

Lead-to-Customer Ratio

Leads just aren’t that important if they don’t turn into customers. This ratio is the percentage of leads that become customers. If your lead-to-customer ratio isn’t looking good, you likely want to ask yourself and your team:

  • Are the marketing tactics we’re using bringing in the right leads?
  • Are leads being successfully passed off to sales (at the right time)?
  • How is our close rate?

Although this is an important marketing KPI, this measurement is often more about sales than it is about marketing. It’s important to periodically assess your company’s sales and lead qualification processes to ensure you’re getting the best possible lead-to-customer ratio.

Return on Ad Spend (ROAS)

This metric is used to measure the success of your ad campaigns. It usually appears as a ratio of the revenue per dollar spent on a campaign and tells you how well the specific campaign performed (and if the investment was worth the outcome).

Net Promoter Score (NPS)

Your NPS measures customer satisfaction, and more specifically, the likelihood of customers recommending your business to others.

It’s vital to listen to what your customers have to say and understand their wants, needs, opinions, and so on. After all, they’re your company’s lifeblood – and if you support them, they’ll support you.

Notable Mentions

While traditional KPIs play a crucial role in measuring specific aspects of your marketing campaigns, there are also some honorable mentions that serve as overarching indicators of success, particularly within digital channels.

Website Traffic

This encompasses the number of visitors to your website and can be further segmented into metrics such as total visits, unique visitors, and page views. Monitoring website traffic provides a foundational understanding of your online presence and audience engagement.

Organic Search Traffic

This metric measures the volume of visitors who reach your website through unpaid (organic) search results. It serves as a barometer for the effectiveness of your Search Engine Optimization (SEO) strategies in improving your website’s visibility and relevance in search engine results pages.

Social Media Engagement

Engagement metrics on social media platforms, including likes, shares, comments, and follows, reflect the level of interaction and interest generated by your brand’s content. Monitoring social media engagement helps gauge the resonance of your messaging and the strength of your community.

Brand Awareness

Metrics related to brand mentions, social media mentions, and brand sentiment provide insights into the awareness and perception of your brand among your target audience. Understanding brand awareness metrics helps evaluate the effectiveness of your marketing efforts in building recognition and fostering positive associations with your brand.

While these metrics may not fit neatly into the traditional definition of KPIs, they are important to consider when assessing the holistic impact of your marketing campaigns and guiding strategic decision-making in the digital landscape. Hoping to gain a better understanding of the success of your marketing, or better yet – are you interested in working with the experts to achieve greater marketing success? Reach out today.

5 Tips & Tricks to Enhance Your Digital Campaigns

Last week, in our first blog of the Power of Digital series, we discussed how powerful and plentiful digital is in our increasingly technological world. This week, in part 2, we’re giving you a few tried and true digital tips and tricks that businesses can use to increase the power of their marketing.

1. Set Goals

When creating an effective and accurate digital campaign, it’s very important to create goals early, and define them with purpose. Loosely defined goals will just lead you to a loosely defined, unsuccessful campaign, so outlining measurable goals should be your first step. Many companies use the SMART method to develop these goals (specific, measurable, achievable, relevant, and time-based) because it ensures you hit every key factor of effective goal-setting. While many goals should be focused on sales and leads, they can also be set around other variables, such as increasing social media followers, email subscribers, and/or engagement. A recent Harvard Business study revealed amazing statistics relating to goal setting and success. It found that the 14% of people who have goals are 10 times more successful than those without goals – so set, and don’t forget.

2. Define Demographics & Use Personalization

Your online audience heavily varies based on a lot of different factors, such as gender, age, location, income, and more. Since there’s such a large range of possible digital viewers, it’s important to research, define, and customize based on your specific audience. Creating personalized marketing that caters to each demographic is the most effective approach when it comes to digital campaigns, so once you’ve defined your specific target audience, think about what will resonate with them, and incorporate that into your copy, images, and overall strategy.

3. Know (& Use) Your Voice

Again, knowing your audience is key, and if you know them well, you’ll know how to speak to them. If your social media posts or emails look like those of every other company, you’re doing your digital wrong. You won’t catch their attention if you blend into the vast digital crowd. Make sure your content and messaging are relevant, consistent, and always showcases your brand voice and brand story. Also, it’s important to make sure everyone in your company has a good idea of this brand voice, so that your salespeople, staff, and representatives showcase it correctly and authentically. Developing brand voice standards and distributing them will help ensure these are streamlined all over digital – and in the physical world. Over time, as your audience and goals are bound to change, these standards may change, so make sure to always adapt your messaging.

4. Include Clear Call-to-Actions

Call-to-actions can be just as important as the digital campaign itself. Emails with a single call-to-action increased clicks 371% and sales 1617%. Don’t forget to brainstorm, discuss, and review them to perfection. Whatever you want your customer to do when they see your display ad, read your email, or scan your social, make sure it’s obviously displayed. Don’t make them guess. Your call-to-action should be front and center, easy to find and direct. The first word of your call-to-action should be first-person oriented and action oriented. And, like we said, make sure you focus on the language of the call-to-action and ensure it’s clearly connected to your brand as well as your products and services. Avoid generic call-to-actions like “read more” or “learn more here” – as customers are so bogged down by these and not enticed by them anymore. Try other, more unique phrases like “Try for free”, “Join us”, or “Give it a go”.

5. Design Effectively

Digital campaigns leave a ton of room (literally, endless room) for creativity, but make sure to use that design space thoughtfully and effectively. It’s essential you think about not only what the digital campaign is, but where it’s going. It’s likely your users are absorbing your campaign touchpoints in more than one place (on phones, tablets, or laptop screens), and that it’s surrounded by other images and advertising – so make sure it fits, and make sure it pops. To stand out, use high-quality images, unique brand elements, and enticing content that is relevant and consistent to further reinforce your positioning and brand experience. If you’re not certain something will work, still try it! The best campaigns are sometimes the most out-of-the-box, and A/B testing can be used to give new ideas a try.

If you’re ready to take your next digital marketing campaign to the next level, contact Strata today.