Key performance indicators or KPIs are used by businesses to measure their growth. For every effort made within the organisation, KPIs allow the company to keep track of how effective the strategies are. It allows the company to achieve its key business objectives and evaluate its success.
KPIs are directly tied to the business objective of an organisation. The sales, marketing, HR, customer service etc departments have their key performance indicators to focus on. CRM custom reports allow managers to keep track of the progress within the organisation and how the existing techniques can be enhanced for better results.
To optimise marketing performance, companies select KPIs to allocate a marketing budget and work efficiently towards their goals.
Here are the most important KPIs to track for improving business growth:
Customer lifetime value is the KPI that tracks the revenue that the customer brings in a lifespan. It is an excellent method to improve your business strategy.
To calculate the CLV, you can use the formula that can be adjusted as per your unique needs and the data that is stored.
Customer Lifetime Value = Average purchase value x Average purchase frequency x Average customer lifespan
Customer acquisition cost is how much a company spends on a customer to acquire them. This KPI is extremely useful as it allows marketers to set a budget for the cost of acquiring customers.
The formula for CAC: Divide the total expenses to acquire customers (cost of sales and marketing) by the total number of customers acquired over a given time.
ROI or return on investment measures the monthly and annual performance of a business. Keeping track of ROI allows owners to think of strategies that will fit their budget while increasing profits.
The ROI gives the indication to the marketers on whether they should focus on their existing marketing strategy or cease their efforts
Measuring sales growth gives you a clear picture of how effective your marketing strategy has been. By tracking this metric, marketing managers can analyse the total revenue that has been generated through the influence of marketing tactics. This will serve as a huge morale booster for the team members and gives greater scope for growth.
The number of leads captured by the sales team is extremely helpful. Similar to sales growth, more leads bring more opportunities for sales. The sales-ready leads and sales-accepted leads should be calculated as well. A lead is considered sales-ready when the prospect undertakes specific activities or reaches a stipulated lead score. Whereas the sales accepted leads are the ones that the sales team has been in contact with.
To improve customer service and the sales process, measuring the response time taken by the sales team to communicate with leads can come in handy.
You may also like: Steps to using a Sales Analytics tool to grow your business
Measuring the number of people visiting the website, this KPI enables marketers to gather relevant data about the website visitors. Visitors are potential customers. These customers can be targeted for campaigns to persuade them into purchasing your products.
Organic traffic can be brought by quality content, SEO and social media sharing.
This KPI is incredibly important for every marketer because social media is the most effective and efficient tool to promote business and reach your target audience. Social media platforms such as Twitter, Facebook, Instagram etc have tools built into the platform and allow easy analysis. You can track the performance of your competitors and keep up with their progress.
Without a doubt, email marketing is the most important KPI that must be tracked by marketers. Email marketing is the best tool in every marketer's arsenal. With 4 billion daily users of email, email marketing generates a lot of leads and brings in tons of customers for every business. Analysis of CTR, unsubscribe rate, forward or shares, open rates and delivery rates to understand the performance of emails.
Landing pages on the website state the offers you are running and the CTAs. The number of people checking up the landing pages and how many have converted are important numbers that are tracked by every professional marketer.
This KPI keeps track of the engagement of the blog posts amongst the customers. These blog post boost website traffic therefore it is significant to keep an eye on the length as well as the content quality with SEO tools.
Optimiser for measuring marketing KPIs
Optimiser's Marketing Suite allows marketers to plan and execute all marketing activities from a single platform. Easy to integrate and user-friendly, the platform comes with comprehensive tools that enable you to plan and schedule campaigns, send bulk emails, design custom templates, conduct A/B testing, and track the KPIs of your marketing efforts.
Using Optimiser's dynamics CRM email reports, you can segment your customers to engage them and supercharge your marketing efforts. Offering unlimited reports, Optimiser also has a dashboard feature, allowing the managers to view the team's progress in one glance as well as make data-driven decisions.
For monitoring any KPI, you will need to set your business objectives, recognise your targets and establish which KPIs you will be tracking. Following these steps, you can select the appropriate marketing techniques to promote your business online and grow.
To monitor your KPIs, you can opt for CRM software to store important data on one platform while avoiding common mistakes made by marketers in the business. Keep ahead of the completion with the assistance of data.
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