Digital marketing KPIs go beyond sales, leads, and customer acquisition to give you deeper insights into your marketing performance.
When setting and tracking marketing KPIs, you may be tempted to give all your attention to sales revenue, leads, and customer acquisition cost. While these marketing KPIs are very important, there are several other KPIs you should track to identify which campaigns and tactics have the greatest impact.
There is no point in continuing marketing activities that aren’t helping you reach a marketing or business objective. If you’re not tracking the right KPIs, you could be missing key information needed for accurate reporting and you may be making poor decisions because of it. By tracking the right marketing KPIs you’ll be able to make positive adjustments to your budget, targets and strategy (and justify your spend too).
The 10 marketing KPIs you should be tracking
Customer acquisition cost (CAC)
Customer acquisition cost measures how much money it costs to convert a lead into a customer. This includes all marketing costs from manpower to software overheads. CAC can help you make better budgetary decisions by showing you the activities that aren’t generating conversions, and what you can leverage instead.
CAC can also help you spot opportunities to shorten lead time and convert customers by spending less and achieving your KPIs faster.
Customer lifetime value (LTV)
Customer lifetime value indicates the total revenue you can expect from a single customer. It’s useful to compare LTV with CAC to determine how much money to spend on marketing.
For example, if your CAC is higher than your LTV, then you’re likely overspending to acquire new customers.
Return on investment (ROI) is a key KPI for all companies, and marketing ROI is just as important when it comes to reviewing performance. When planning future budgets and setting targets, this should also be front and centre, determining future marketing activities.
To calculate marketing ROI: (sales growth – marketing investment)/marketing investment
Marketing revenue attribution
Marketing revenue attribution identifies how much revenue was influenced by your marketing activities. Tracking this is very important to understand how much revenue can be attributed to each of your marketing channels, plus it proves the value of your efforts.
For example, you can use marketing revenue attribution to assess the impact your social media marketing has on sales.
Marketing qualified leads (MQL)
A marketing qualified lead (MQL) is someone who has interacted with and shown interest in your brand. An MQL is a potential customer who could become a serious prospect if you nurture the relationship. This is a very important marketing KPI since it helps you understand how many leads you’re generating directly from your marketing efforts.
Your marketing team can identify the ratio of how many MQLs become sales qualified leads (SQLs) and, eventually, customers to help address any disconnects in your marketing funnel.
Attracting website visitors is a key stage in most marketing funnels, so tracking and analyzing your website traffic can be very important for delivering effective marketing campaigns.
Organic website traffic is also essential to measuring the effectiveness of your content marketing and SEO strategy.
Referral traffic is a marketing KPI that helps you understand where your website visitors come from. It’s an important KPI to track since it helps you see how people find your company.
By seeing how people end up on your site, you can switch up your strategy and focus on that area.
Conversion rate is the percentage of visitors who complete a desired action, like signing up for your newsletter or making a purchase. This is a very useful marketing KPI because it helps you gauge the success of your lead generation.
If you’re receiving a lot of traffic to a landing page but conversion rate is low, you can optimize the content and CTAs to improve the conversion rate.
Return on ad spend (ROAS)
Return on ad spend (ROAS) measures the revenue generated by advertising against your investment. It’s usually expressed as a ratio and you can use it to determine the success of your ad campaigns.
For instance, if you made $1,000 for every $100 spent on advertising, this gives you an ROAS of 10:1. Click here to find out how to calculate ROAS.
Social media engagement
Social media plays a major role in marketing and one of the main social media marketing KPIs to track is engagement.
Any way that a potential customer interacts with you on social media can be measured and analyzed to gauge the effectiveness of your organic and paid social campaigns.
For instance, you can track likes, shares, and comments to understand who is engaging with your content and identify how to convert them into leads. If you are engaging the wrong target audience you’ll find you have high engagement on social media but a low conversion rate from social, and adjust your social content accordingly.
Set and track marketing KPI targets with Mediatool
Mediatool helps you set targets and track your marketing KPIs at media plan/campaign level or for specific marketing channels, brands or products. Once you’ve set targets and budgets, Mediatool’s integrations automatically tracking performance to see how close you are to reaching them.
To see how it’s done, visit our platform solutions page or take a tour with a member of our team to find how Mediatool can specifically help you track your marketing KPIs and run more effective marketing campaigns.