Key performance indicators, or KPIs for short, are critical when trying to determine how successful your marketing campaign is. By keeping track of these indicators, your marketing team can ascertain out how to tweak your campaign to increase its effectiveness.
Cost per Acquisition
This metric is the total cost of acquiring a new customer through a specific channel or campaign. It focuses on the amount spent on the entire marketing journey, from first contact to customer. Although it can be applied quite broadly, cost per acquisition is most often used when referencing media spend. This KPI is useful in determining how effective your campaign is as long as one of your primary acquisition channels is media.
Market Share
Market share helps establish how effective your marketing campaign is by comparing the numbers against those of your competitors. This metric is important because it provides a relative measurement against external benchmarks.
Many companies can get caught up focusing on internal metrics such as leads, awareness, and revenue growth. However, these statistics can be deceiving if external factors are not taken into account. No matter how much awareness you are generating, your marketing campaign strategy needs to change if your competition is consistently outperforming you.
Brand Equity
Brand Equity is the perception the public has about a product or company which contributes to the impact that a brand has on consumer purchases. Brand equity is a combination of many different factors such as customer experiences, brand awareness, reach, and image association. Although this metric can be difficult to measure, the data collected can help your marketing team have a better understanding of your target persona and improve their overall marketing strategy.
Cost per Lead
Cost per lead is important for measuring how cost-effective your marketing campaign is when it comes to generating new leads. This metric establishes a tangible dollar figure so that your Marketing team can determine how much money they should be spending on acquiring new leads.
There is no ideal number for cost per lead since it depends on how expensive the product or service you are marketing is. For example, a luxury car dealership might be satisfied paying $80 for a lead but that cost would be far too high for a company selling sports drinks. However, at the end of the day, the goal is to minimize the cost per lead. A high volume of quality leads at a low cost per lead is a good indicator that you are running a successful marketing campaign.
Conversion Rate
One of the most essential key performance indicators for marketing is your conversion rate. This metric keeps track of how many potential customers are moving closer down the pipeline to become fully-fledged clients. Conversion rates can be measured a variety of different ways depending on your company's goals.
If you are trying to increase web traffic, then any time a paid advertisement steers a new consumer to your website will attribute to your conversion rate. If your goal is to increase overall sales, then your conversion rate would be calculated based on how many leads are converted into sales through your follow up calls. Tracking your conversion rates helps identify what parts of your marketing strategy are working and what might need to be changed.
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