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Tracking marketing KPIs is not a new thing to many business owners and marketers. They are fully aware of the most critical KPIs they should be tracking in order to execute a successful marketing campaign. At the top of their list of the most critical KPIs that they keep track include leads, sales revenue and acquisition. Because no marketer wants to support marketing activities that lose his company money, he has to strive to track the right Marketing KPIs that his company will use to make the necessary adjustment on various budgets and strategies. If he isn’t spot on when choosing the right KPIs for his company, the company might be making decisions that are based on misleading market information.

5 Critical Marketing KPIs to Track

1. Sales Revenue At the top of our list is sales revenue. Business owners and marketers have to know how much revenue their inbound marketing campaign has brought to their companies. When understanding the sales revenue a company generates, it is important to know how effective the inbound marketing is because not even a single company wants to invest its money in something that is not generating money. For instance, let’s think of an inbound marketing campaign like pay per click, if the total sales revenue from your direct mail is less than the amount you used to pay for that campaign then why should you continue to use direct email as your marketing campaign? Most likely you will move to your money to another marketing activity that yields more profits. When determining sales revenue from inbound marketing, you will have to define what you actually mean by inbound and outbound marketing. Examples of inbound activities include Podcasts, Blogging, Infographics, Developing premium contents, Pay per click and Social media engagement. Examples of outbound marketing activities are Advertising, Telemarketing, Direct mail and Television ads. You can also determine your sales data from closed loop reporting and CRM integration, by using the following calculation; Total year’s sales minus Total revenue from customers that was acquired from inbound marketing. This method is preferred if you can not get hold of complete data on direct email. 2. Customer Value With the many inbound marketing campaigns, there are no better ways to reach out to your customers. Inbound marketing not only helps the business keep in contact with its lead but also helps expand customer’s life time value and reduce churn. The best way that a business can increase the life time value of its customer is through developing a lead nurturing campaign which seeks to reach out to the business’s existing customers. This will help provide the business and its sales team the opportunity to inform its existing clients about new products, services and resources. Businesses can calculate the customer life time value by using the following calculation; Average sales per customer multiple by the Average number of times the customer buys in a year multiple by the Average retention time in months for that customer. 3. Lead to Customer Ratio This is another important marketing KPI businesses have to track if they want to evaluate the business performance in terms of lead the business closes. After all the marketing, it is important to know how many leads the sales team closes. You have to calculate both the sale qualified lead conversion rate and sale accepted lead conversion rate. Sales qualified leads are leads that are considered to be sales based on their lead score or activities they completed. Most companies consider a lead that fills a form like contact a rep, as a lead ready to buy their services. For instances, waste management company with a lead who fills a form like rent a dumpster, is considered as a sales qualified lead. Sales accepted leads are leads that the sales team considers as an opportunity and have either schedule a call or contacted the lead directly. Lead to customer ratio is an extremely useful for sales and marketing team to help determine how effective they are. 4. Traffic lead ratio You have to understand your website traffic, especially know where the traffic is directed from. Whether it is referrals, social media, organic or direct it is very important to understand it. You also have to know if it is gradually increasing or dropping. Not only should the website traffic meet the monthly set goals but also make sure the visitors to leads conversion rate is between 2- 4 percent minimum. 5. Social Media Reach People often question why social media reach is considered among KPIs. Well, if you didn’t know, the social media is a very big component of the inbound marketing strategy because it allows the business to engage and share with its customers. The value of social media reach can be seen through the growth and engagement within media profiles. The engagement can include likes, comments shares, retweets, mentions and many more depending on the social media platform. The following are ways you can use to show the value and impact of social media in the business marketing effort. 1. The number of leads conversions that were assisted by respective social media 2. The percentage of traffic which is linked to the social media channels 3. The number of customers’ conversion generated through the social media channels. There are many social media sites that you can effectively utilize to increase your leads. Breakdown the number customers, leads and traffic percentage of respective social media platform, to see which social media your customers utilize the most and making it you primary social media reach to your customer. It makes no sense to spend a lot of time on twitter engaging or interacting with your customers, yet over 50% of your customers are on LinkedIn. Tracking these critical marketing key performing indicators brings many benefits to the company than effort input in tracking them. Try picking one or two above marketing KPIs and incorporate into your marketing strategy then put them is comprehensive report. You will be amazed how these marketing KPIs will make your effort completely measurable.




Omri Erel
Omri is the Lead Author & Editor of SaaSAddict Blog. Omri established the SaaSAddict blog to create a source for news and discussion about some of the issues, challenges, news, and ideas relating to SaaS and cloud migration.