7 Advertising and marketing KPIs That Are Actually Value Monitoring


Marketing Key Performance Indicators (KPIs) can be used to measure progress towards your strategic marketing goals. Focusing on the right metrics and choosing the most appropriate marketing KPIs for your business is critical to the success of your marketing strategy.

All good marketing KPIs are directly related to business growth. Forget about vanity metrics and keep track of everything to make it happen. It's counterproductive. Know your metrics, measure them well, apply the less is more principle and you are on the right track.

But you're here to find specific examples. Here are seven marketing KPIs you need to know:

  1. Sales metrics
  2. User and customer acquisition
  3. Quantity and quality of leads
  4. Customer Lifetime Value (CLV)
  5. Language portion (SO V)
  6. Brand Awareness Metrics
  7. Net Promoter Score (NPS)

Sales metrics directly reflect the growth of your business and make it as easy as possible KPI. However, you need to know which financial metrics are most sensible to measure, given your business model and planning.

For example, Ahrefs and other SaaS products can safely use the monthly recurring income (MRR) or annual recurring income (ARR) As a KPI. VC-backed companies can even take the approach to grow and thrive at all costs – even when costs are higher than revenue.

However, this is rarely the case. Most companies are better off considering both revenue and cost. In other words, profit usually beats sales than KPI.

How to measure it

Sales metrics are easy to measure because you know their exact value. If you don't, you are in real trouble with your accountant and the local tax office. You must have these numbers in your Customer Relationship Management system (CRM), Checkout systems, or the financial dashboard you use.

For marketing analysis purposes, you may want to use the advanced ecommerce tracking in Google Analytics or its alternatives, which will help you attribute sales to your marketing efforts. Remember, any web analytics tool is inherently skewed and may not track everything properly. Do not use these numbers for the KPI.

2. User and customer acquisition

Accelerating user base growth doesn't necessarily mean more profit, but it has implications that go well beyond any financial metric.

For example, in September 2020 we will have a free version of our SEO Toolset called Ahrefs Webmaster Tools. Improving our word of mouth, expanding our user base, and introducing more people to our product will result in long-term growth.

How to measure it

Use numbers from your CRM. Of course, customers have to log in to be able to track this.

3. Quantity and quality of leads

If you have a subscription-based business this might be for you KPI to you. It shows how effective your marketing communications are in attracting users who are likely to buy from you. The quantity and quality of your leads is a precursor to a growing customer base and growing sales.

How to measure it

Knowing the amount of lead is easy as this information should be in yours CRM. It is lead quality tracking that requires more work and planning. Here we come to lead scoring. Develop an automated system that evaluates all of your leads based on the data they provide.

Here are some data points to evaluate:

  • Estimated purchasing power of the company
  • User behavior and actions taken in your app or website
  • Test level and setup
  • Everything the user said to your customer or sales team
  • Any other data that you collect from your user registration process

It is worthwhile to consult an analytics expert for this. Something CRM Platforms like Hubspot have a built-in lead scoring feature, but it may not be the best solution for your use case.

4. Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a metric that estimates how much money an individual customer will spend on your product or service. As you increase the value of your average customer, you not only improve your financial metrics, but you can also spend more on attracting new customers.

How to measure it

This is the most basic formula to calculate CLV::

Average Order value x average Annual purchase frequency x avg. Customer lifetime

If your AOV is $ 100, customers buy the product four times a year and stay with your company for an average of three years CLV would be 100 * 4 * 3 = $ 1,200.

Of course, you need at least a couple of years of sales history to get the metrics CLV Calculations. However, if you already have this, you can also estimate which of these three metrics need the most improvement. If you raise any of them overall CLV increases.

Language portion (SO V) is traditionally a measure of your advertising share compared to competitors. With most brands now battling for visibility on organic channels like social media and search, we can expand this definition to include how visible your brand is in the marketplace.

This is excellent marketing KPI because there is a strong relationship between SO V and market share. Once yours SO V higher than your market share, you create surplus SO V (eSOV). Your market share should go in the same direction over the long term.

Obviously, getting a comprehensive one is clearly difficult SO V Number that includes all of your marketing channels. The solution? For each channel, select a metric that reflects the principle of SO V.

How to measure it

Here are some marketing channels and their respective metrics that can represent SO V::

Organic search: Visibility in SERPs
Paid search: Impression Share
Organic social media: Brand names versus your competitors
TV Show: Gross evaluation points (GRP)

For example, with organic search, the easiest way is to keep track of your main keywords in Rank Tracker, add your competitors' domains, and check the visibility metric on the Competitive Summary tab.

Via Ahrefs Rank Tracker

The visibility metric shows the percentage of all tracked keyword clicks that land on you and your competitors' websites.

Recommended literature: What is language portion? How to measure it across channels

6. Brand Awareness Metrics

Brand awareness stands for the familiarity of your brand with your target group. For example, the brand that first comes to mind when you think of electric cars is likely Tesla, not Rivian. This is because Tesla has higher brand awareness among consumers.

Here are two things you can measure in terms of your brand awareness.

  • Charisma. Is your brand coming to mind in your industry? In other words, what percentage of your market know about you?
  • positioning. Do people agree with your positioning? Does your marketing communication create the right associations around your brand?

How to measure it

Measuring brand awareness requires market research resources as you need answers from a representative sample of your market. Market research agencies specialize in this and are your only way to get comprehensive data.

7. Net Promoter Score (NPS)

Net Promoter Score (NPS) represents customer satisfaction and loyalty based on how likely they are to recommend your product or service to others.

You've probably seen one of these:

The score selected by the user determines whether it is a critic, a passive, or a promoter.

The NPS The score is then calculated by subtracting the percentage of critics from the percentage of promoters. It can be anywhere from -100 to 100, and anything above zero means you have more promoters than critics.

In general, values ​​above 70 are considered exceptional, but the threshold may be lower depending on the industry. Just think of telecommunications companies that we all need but also dislike. You would be happy if the values ​​are above zero, as you can see from these industry benchmarks.

All in all, NPS is an easy to measure metric that reflects your customer loyalty, satisfaction, and brand strength.

How to measure it

There are many NPS Sales channels for surveys – physical, online, by email or just as a pop-up window in the browser.

The calculation is simple and some pieces of software do it for you. Note, however, that it is still just a number with no context. When you decide to measure NPSyou should also examine the motivation behind users' evaluation decisions. You can ask further questions as part of the survey to get this qualitative data.

Final thoughts

You may be wondering why I use metrics like return on investment (ROI) and customer acquisition costs (CAC). The short answer is, although it is good metrics, you need to be careful with it. They lock you up for short-term decisions.

Use these metrics as KPIs for channels where they make sense PPC Show. But if we turn to the display of advertisements – something that also tends to get covered PPC Specialists – there is no point in looking at them ROI or CAC.

The long-term effect of getting your brand in front of people with display ads can be greater than having people actually click through. And it makes even less sense to use these metrics to rate purely branded channels like TV or billboards.

Most importantly, you don't measure a metric just because of it. Make sure you set strategic marketing goals that use these KPIs.

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Jeffrey Rabinowitz