With the emergence of the new marketing value chain comes the imperative to focus on new key performance indicators (KPIs). While mixing up your KPIs and becoming accountable for new metrics can be rattling for marketers who are used to a certain way of doing things, shifting your focus can make for smarter, more efficient marketing.
Here are four KPIs that are essential to keep track of as you shift your marketing efforts to focus on the new value chain.
As we discussed earlier this week, highlighting the relationship between sales and marketing is key to demonstrating your contribution to overall revenue. Using sales revenue as one of your KPIs also helps keep you on track with your company’s most important goals. Ensure that the sales revenue contributed by marketing exceeds the expenses that your marketing campaigns incur, and strive to continually maximize your return on investment.
We’ve spoken before about the Net Promoter Score, which measures customer loyalty to your business. While loyalty is inextricably tied to purpose (and as we’ve talked about, purpose leads to higher profit) your company’s Net Promoter Score also can be used to predict customer retention and profit, as well as see how customers and other stakeholders are reacting to your marketing and your brand.
How many of the new leads you generate are actually converting from marketing qualified leads (who are nurtured online with tactics like marketing automation) to sales qualified leads (who are ready for personal outreach from your sales team)? Know the ratio between the leads that move forward to become SQLs, and then track those leads to see if they actually turn into revenue to help improve your process for sending your sales team quality leads.
Digital marketing is often focused on two goals: driving site traffic and generating leads. You’ll actually want to break this KPI down into four different metrics in order to get the best results: unique visits to your website, new lead conversions, site visits per conversion, and conversion by source. By doing so, you’ll uncover valuable data on the relationships between your web traffic, inbound leads and sales.
Data-driven marketing doesn’t just mean collecting data, but rather focusing on measuring what matters and gleaning insights that inform future marketing decisions. Make sure that all of your KPIs are supported by data and analytics, and know that you’ll need to stay accountable to that data in order to run a successful marketing department and prove your ROI.
Let us know: what KPIs do you find most useful for your marketing?
Photo Credit: Official GDC via Flickr Creative Commons
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Thanks a ton, Moveo Team, this article on KPIs is so important for many of organization in this changing markets, it’s time for us to look at Net Promoter Score.