Measuring your success in your marketing processes enables you to clearly see what works and what doesn’t. The following are important Key Performance Indicators (KPIs) to help you measure your marketing efforts:
- Customer Acquisition Cost (CAC): The cost of acquiring a customer determines how successful your marketing campaign was. If the campaign ran on a $1,000 budget and twenty customers were acquired, the business’ CAC is $100 per customer. The more customers acquired, the less the CAC. Lower CACs indicate a successful marketing campaign.
- Conversion Rates: Conversion rates measures your marketing success by calculating the number of customers acquired in relation to the number of visitors drawn in via the marketing campaign. If your marketing campaign brings 1,000 visitors and 20 leads are gotten, then your marketing campaign brought a 2% conversion rate. Conversion rates also enable you to know where drop points exist, and how to fix them in subsequent marketing campaigns.
- Return on Investment: Return on Investment (ROI) is the amount of sales revenue a campaign brings in, measured against the money spent during the campaign. A high ROI indicates a successful marketing campaign. ROI also helps the business determine the quality of leads just generated from a marketing campaign.
- Customer life Value and Net promoter score: The Customer Life Value is known when the average sale per customer is multiplied by the average number of times a customer buys per year and multiplied by average retention time in years. This helps you to know which marketing campaign generated your best customers. While Your net promoter score helps you know how successful your marketing has been, and how effective you are in building positive experiences for your customers.
- Persona and Engagement metrics: Having a Persona metric enables you to measure the type of visitors coming to your website or page (and the percentage which is your right audience) as a result of a marketing campaign. Knowing the type of people who your marketing campaign is getting to, and who is attracted to your campaign, is a good way to measure your success. Engagement metric enables you to measure how aware the public is of your brand, and how engaging your campaign is to them. You get this statistic by the number of social shares, comments, and inbound links your social accounts receives as a result of a marketing campaign.
- Authority and Time frame to achieving results: The measure at which people consider you as an authority in your field is a KPI of your marketing success. There’s no better way to know you are sending the right message and will turn in more sales, than by the public’s perception of you as an authority, and their trust in your brand. Also, the time frame it takes to achieve results enables you to know how successful your marketing has been. Whether it takes a week or a month to achieve set goals, it is an indicator of your marketing success.
In conclusion, you measure your marketing success effectively when you establish key performance indicators (KPIs) for each marketing campaign.