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Set A KPI For The Marketing Team; Do Not Forget These 15 Tips

Any work needs criteria in order to be well evaluated and evaluated for its effectiveness. These metrics are used extensively in marketing, and they are used to examine the work of individuals as well as the work process in the team. Key Performance Indicators (KPIs) are used to measure the success of a marketing team and each team.

In any business, what is the digital marketing response? And what it does for us is determine the KPI for the marketing team, which is one of the most important things to do at the beginning of each business season, which helps a lot in improving the marketing process.

What is KPI?

A KPI is a key performance indicator that identifies how your company is performing to achieve a goal or goals. KPIs are usually assigned to various business segments, including finance, marketing, sales or operations.

Below, we review KPIs and some examples of marketing KPIs that can help improve your marketing.

Customer Attraction Cost (CAC)

Customer attraction cost (CAC) is the amount of money spent to convert potential leads on the customer side. This metric can be used to improve marketing because it helps you make important budget decisions.

For example, you do not currently have a goal to increase leads and customer acquisition, and in your opinion, this goal will not benefit you at the moment. Basically, this cost and benchmark helps businesses decide how much money they should spend to attract customers.

Customer Lifetime Value (LTV)

Another criterion that can affect the cost to the marketing team is the value of the customer's longevity. This measure represents the total amount of revenue a business expects from a single customer.

This criterion, along with the criterion of customer attraction cost, are very decisive in obtaining costs. For example, if your CAC is higher than your LTV, you are more likely to spend more to attract customers from your side.

Return on Investment (ROI)

Return on investment in marketing refers to the amount of money you earn compared to the cost of marketing. To calculate this amount, you subtract the marketing costs from the sales amount and then divide it by the marketing costs to get your return on investment.

Keep in mind that in marketing, it is difficult to directly attribute sales to a marketing campaign. To get the exact amount of sales, you can subtract your average organic sales growth and marketing cost from your sales profit and then divide it by your marketing cost.

Advertising Reimbursement (ROAS)

Advertising efficiency is a specific KPI that you can use to determine the success of your advertising campaigns.

This criterion measures the amount of revenue earned in terms of each you spend on your advertising campaign. This criterion is usually obtained with a ratio.

For example, suppose you earn 10,000 dollars for every thousand spent on an advertising campaign. This means that your ROAS for that campaign is 10: 1.

Eligible Marketing Leads (MQL)

MQL is the leads you have in your business, and if you strengthen them, you can expect the user to get more involved with your business and ultimately do what you expect the customer to do. In fact, they are users who interacted with your marketing efforts but did not reach the buying stage.

This is a great KPI for the marketing team because it helps the marketing team understand how many leads they have been able to communicate with the team's marketing activities.

Qualified Sales (SQL)

If MQL is properly developed, it will eventually have to sell. SQL is a potential customer who is ready to talk to someone on your sales team. These sections are usually reviewed by the marketing department.

This KPI is also very useful in the marketing team, because it can help your marketing team to understand how many people talked to the marketing and sales team.

Growth and increase of followers

When hiring a digital marketing expert, one of the tasks that may be considered for this person is to increase followers on social networks. If this person works in a social media team, a KPI will be defined for them, which is the growth rate of the number of followers.

Probably one of the goals of the social media team and social media manager is to increase brand awareness and engagement with the audience. Increasing the number of followers is a great way to measure the success of these goals.

Exchange rate

The conversion rate is the percentage of visitors that the marketing team does. The desired action can be to complete the online form to register to use the service or purchase the product.

This is a great KPI for the marketing team because it can give you information about how successful your efforts are in getting leads.

For example, if the action is to fill out a form online, measuring your conversion rate can let you know that the page will not convert the user into a customer. If that happens then you have to look at your marketing strategy.

Website visitors

As a marketer, you need to know that the main goal of marketing activities is to attract people. A great way to accomplish this goal is to attract guaranteed website visitors through the website.

The number of visitors to a KPI website is important, because by setting a KPI for your marketing team, you can measure the success of multiple campaigns.

For example, by measuring the amount of organic website traffic, you can measure the effectiveness of the SEO department in your marketing team.

Social media participation

Social networks do not play an important role in marketing. One of the main KPIs for social networks is the amount of interaction. You can measure likes, shares, comments, messages, tags or saves on these networks. No matter how the customer interacts with your networks, you can gain their participation.

Measuring the amount of engagement on social media can also help you analyze the success of posts on these networks.

Referral Traffic

Referral traffic is a KPI on the marketing team that helps you understand where your website visitors are coming from. This is a great KPI for the marketing team to understand how the users and visitors of the website got to know them and came to the website. This KPI can give you useful information when developing your marketing strategy.

Net Promoters Index (NPS)

Net promoters' index is a way to measure customer satisfaction. This KPI measures how likely your customers are to recommend your business to a friend.

When calculating your NPS, you are likely to leave more room for comment. This metric can provide you with direct and significant customer feedback.

When it comes to marketing activities, it is important to listen to and understand what users and customers are saying. This KPI will help you do just that.

Organic traffic

It is very important to measure the success of SEO activities in the marketing team. To do this, the KPI of organic search traffic and the performance of keywords in search engines is most important. Using an SEO tool, you can get website rankings and keywords in search engines. This KPI sets out the overall SEO and organic traffic strategy.

Attend The Event

As a marketer, you will have a KPI for every campaign you run. For example, if you are running an event, you are responsible for ensuring that you are successful in attending the event. This KPI shows you how well your marketing team has done in attracting people to the event.

Customer retention

You may think that customer retention is not a marketing KPI, but this KPI is very important in marketing and is considered in all activities and hiring a marketing expert.

Customer retention is a great KPI for your marketing team because you can use the information from this KPI for future marketing campaigns. In addition, it helps you to know your customers better and, therefore, you can perform marketing activities on them in the best way.

Finally, we must say that all these KPIs are important, because they can well measure the success of the marketing team and even measure the success of each team member. You will use KPIs in almost every situation, because in all short-term and long-term activities of the marketing team, the ultimate goal is success.

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