Having defined KPIs is essential to the good performance of a company. KPIs are key performance indicators that tell us what state the business is in and how far (or near) we are from meeting the stated goals. Based on the indicators and the company’s performance, managers can make informed decisions. BAM tools such as Multipeers allow you to track KPIs continuously and in real time. Analyzing performance consistently ensures that more attention is paid to meeting the objectives, effectively increasing the degree of achievement of the objectives. Marketing is one of the areas that most benefits from the use of KPI monitoring tools. In today’s article, we will address 10 KPI’s of marketing for every business!
Having many visits on the website is very important and means that the same is performing well and appears in the search engines. However, it is not enough that the visitor navigates the site and leaves it without leaving a contact or without buying something. The conversion rate compares the number of visitors to the website with the number of visitors actually making a purchase. It’s a very important indicator because it allows us to understand how appealing our website really is and if it is encouraging its visitors to make a purchase.
ROI means return on investment and measures the end result of an investment: it relates all the expenses involved in an action to the profits made by that same action. The formula for calculating ROI is as follows: ROI = Net Profit (Total Profit from Investment – Cost of Total Investment) / Cost of Investment. If the ROI is greater than zero, it means that the investment was positive for the company. If it has negative values, there was a loss. It’s one of the most important indicators in the marketing area since there must always be an evaluation of all the actions carried out.
Cost by lead
This indicator shows us how much it costs the company to acquire a lead. We get the value after dividing the amount of money invested in marketing by the number of leads generated. Studies report that the cost per lead generated through digital marketing is about 61% lower than the leads generated by traditional marketing. Knowing how much it costs us to generate a lead is essential so that we can redistribute the investments and improve the results.
Bounce rate shows us the percentage of visitors who were only on one page of your site. The higher this ratio, the worse your performance will be, as it means that there were many visitors quickly giving up on exploring your site. This may mean that your site is not appealing or has little relevant information. Whenever this value is too high, you should invest time in improving the website. Otherwise, you may lose many business opportunities.
Annual growth rate
The annual growth rate is calculated by comparing data between two consecutive years. At this rate, it becomes easier to perceive the annual performance of the campaigns and to withdraw the values that the effects of seasonality may cause. This annual growth rate also allows you to find trends.
Indicator that reveals the origin of a visit to the website. It’s an important indicator for us to realize which social media strategies are working better, whether the newsletter is generating visits or if paid campaigns are producing results. Knowing what platforms our customers and potential customers are on is an important guide to all our action.
Client retention rate
To obtain the customer retention rate simply add up the total number of customers and subtract the number of customers that have been lost in a certain period. Then just divide the result by the total number of customers. The higher the retention is, the lower the need to acquire new customers and the greater the likelihood of generating new sales for the same business portfolio.
Number of submitted proposals
The number of proposals is important to realize how many potential customers have expressed a real interest in buying something from our company. The number of proposals must always be based on the total number of contacts made.
Visits generated by social networks
If your company is communicating through social networks, you should always measure the impact it has on your website and business. It’s no use putting good material into company profiles if it doesn’t translate into visits and sales. Weekly, you should measure how many visits you had from each social network and should invest more in those that more visits generate. If a social network doesn’t continuously generate any visit, you should consider whether it is worth continuing to invest in that network.
Visits to the website
This metric is essential in the online world we currently live in and shows us how many visits the website had in a given period. It’s important not to confuse this metric with the number of people who visited the site: this indicator merely states how many visits users made to the site, and the same person could have accessed it several times. This indicator is critical to the success of the sales funnel because the more visitors you have, the greater the likelihood of generating leads and sales. You can easily find this value in the Google Analytics dashboard.