What is a KPI and why do they matter? We keep seeing this thrown around the advertising and marketing world so we thought it would be good to touch base on what they are exactly and why they are important. KPI’s are quantifiable measures of performance in order to gauge progress and insights in particular areas of your business. KPI’s are target that should be tracked because they support the overall goals of the brand through keeping the team aligned, checks on the organization to spot problems, helps allot for adjustments that need to be made if something isn’t working by analyzing patterns and it will hold the whole company accountable. KPI’s are found in every area of a business from finance to advertising campaigns. There are literally so many to list we couldn’t do it all in one article. However, we will list a few for example that pertain to marketing.
1. Qualified leads. This can be done as marketing qualified leads or sales qualified leads. Either way, it shows the marketing team how many leads are coming in and how many are talking to the sales team.
2. ROI. You’ve heard this one a lot in our articles. It’s insanely important. This is the amount of revenue in versus how much is spent.
3. Funnel conversion rates. This is the percentage of visitors who complete some desired action. Examples would be signing up for a newsletter or purchasing a product.
4. Customer acquisition costs. This is a measure of the amount of money to convert a lead into a customer.
5. Customer engagement. This can be tracked very well in social media through likes, shares, saves, mentions and comments.
6. Customer retention. Helps you better understand your audience. Your “turnover” rate for your customers can give your brand insight into what may or may not be working.
KPI’s can help your brand make more informed and better decisions within the company. Choose the KPI’s that will matter most in your marketing department and that will align with the brand’s overall vision. Tracking your progress is the best way to secure a well-founded marketing strategy for your brand!
