5 Best Marketing KPIs You Should Measure

Marketing is one of the most important aspects of any business. Without it, it would be difficult for a business to generate revenue, which would lead to bankruptcy.

That’s why most major corporations dedicate a significant portion of their budget to marketing. However, for marketing to be effective, it has to justify itself.

There would be no point in spending too much on marketing if there is no return on the money spent. That’s why key performance indicators (KPI) are so important to organizations.

Do you know, What is KPI? 

It is the “Key Performance Indicator” which are the values being measured to illustrate the performance of the marketing campaigns. 

KPIs helps a business make sense of its marketing numbers, and determine what works and what doesn’t.

But with so many of these metrics available, what are the best marketing KPIs that need to be tracked? Let’s see some critical points through this blog post. 

5 Essential Marketing KPIs Need To Be Tracked


1. Sales Revenues

One of the most important KPI is a company’s sales revenues. That’s because it gives an indicator of how much revenues a company’s marketing campaign has brought in.

What makes sales revenues stand out as a KPI is that, it touches on the most important aspect of the organization, and that’s its revenues.

Through this KPI, a company gets to understand the perception of its clients towards its products, and what can be done to improve on them.

For instance, if an aggressive inbound marketing campaign doesn’t lead to an increase in sales revenues, it could mean that the company’s product is not strong enough in the market.

2. Customer Value

This is another KPI that is very important to all organizations. That’s because it gives a company an idea of how happy its clients are with its products.

Customer value is calculated by multiplying average sales per customer, by the average number of times a customer buys per year by average retention time in months or years per customer.

The best part about customer value is that it gives a company an idea of how well its marketing efforts are doing in terms of retaining its existing clients.

If this metric is weak, the company can make improvements in order to retain its existing clients, who also happen to be the most important to a business.

3. Lead To Customer Ratio

This stands for the number of deals a company’s sales team can get from their efforts. This KPI is also important because, it helps determine the quality of a company’s marketing staff quality, as well as the quality of its product.

For instance, when it comes to B2B marketing, the team should be able to employ B2B efficient marketing strategies, in order to close deals. B2B marketing examples include research on customer needs, product testimonials, and referral systems among others.

If the team has a good lead to customer ratio, it would mean that they have a good understanding of customer conversion, hence an asset to the company. 

However, if their conversion rate is weak, it would signal to the company that it needs a new approach to marketing, including hiring new employees, who are better versed at customer acquisition.

It’s one of the best ways to increase the value of a company’s marketing efforts for long-term growth. Hence you should track this metric. 

4. Site Traffic To Lead Ratio

Whatever be your business, it’s good to have an online presence through the stunning website. Since we live in the technological era, building the business website is just a piece of cake. 

Yes, through a DIY web builder, you can make an impressive business site to display your features and valours. You should not forget to implement the SEO to drive the targeted visitors from the search engines. 

After started driving the audience for your business website, then you should analyze the quality traffic by checking how much of them are getting converted to get your product/service. 

Through this traffic to lead ratio indicator, you can boost the conversions with which you could establish a brand name for your business. 

5. Social Media Reach

Social Media Marketing works for any business because social networks like Facebook and Twitter are being widely used by people these days. Like web presence, your business should have a social presence to target and connect with potential customers. 

The major social platforms have in-built tracking and analysis feature through which you can easily determine the visitors’ engagement and lead conversions.

Calculating this metric would help you understand your followers intent and increase your social presence as it is one of the inbound marketing strategies that would help you get more leads.

Final Words

If you want to make the long-term business goals for your business, then you need to monitor the KPIs. Whether it is digital or any traditional marketing strategy, you have to track the metrics that I have listed in this post, so that you will get the ability to make a decision whether to proceed or not!

With accurate KPIs, you could spot the problems, run effective campaigns, clarify performance expectations, and drive your operating model. In simple words, the values of KPI would let your business move towards the goals and help to attain success. Do you agree with me? 


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