The Ultimate Marketing KPI Metrics Content
Marketing KPI is a measurable marketing metric that helps track marketing performance in a business. The Marketing KPI content metrics are important and sensitive variable that needs close monitoring to ensure the smooth running of the organization. If you fail to track one key performance metrics process ruins all.
It is hard to perform at the top level when one department is under-performing. Take each department in your business as a leg, when your leg is hurt during a race it means that your target of becoming victorious is in jeopardy. Business is the same; have one under-performing department and everything becomes a mess.
What is KPI?
Key Performance Indicators (KPIs) is defined as measurable metrics that ignite or push the realization of performance in a business. Business performance is the actual progress towards a realistic set objective that is aligned with the business strategic goal. In an organization, KPI does not track every single little action going on in the business but the key activities that contribute to the success.
When you talk about organization KPI, you simply mean a Key Performance Indicator that tracks the overall organization performance which is the case but it is no true to say so. We generalize and say business KPI but in actual sense, it is a combination of Lower-level KPIs that gives the overall Organization KPI. The organization KPI is referred to as the Higher-level KPI.
Higher-level KPI combines overall performance indicators obtained from the Lower-level KPIs. This Higher-level KPI tells whether all departments are working towards the objective. In short, it tracks the departmental KPIs and combines the department metrics to form the High-level KPI. Therefore the actual KPIs that track the organization performance is the Lower-level KPIs.
Lower-level KPIs are the departmental KPIs that track the department's key processes and activities. They are usually referred to as department KPIs. Some of the examples you will find in most business are;
- Marketing KPI
- HR KPI
- Finance KPI
- Sales KPI
These are the most common Lower-level KPIs but the list can count as far as the number of the departments in your organization. My interest is in the Marketing department KPI and how this KPI contributes to the business overall performance.
What is Marketing KPI?
Marketing KPI is a measurable metrics of key performance processes and activities the marketing department undertakes on a day-to-day basis. This KPI tracks marketing variable metrics that are important in the achievement of marketing goals and targets. It (marketing KPI) is designed to track the marketing activities like the sales volumes, acquisition rate, marketing leads and all the important marketing processes aimed to improve the performance.
Remember that the organization's goal and targets at large are defined and stated differently from what the organization department does. I mean that the overall strategic objective is the same but each department goal and target differs due to its operation and roles in the business. HR goals and targets are different from financial department goals and targets. Where all these department goals and targets are headed is a collective objective, to attain the organization's strategic goal.
In the marketing department, the main goal is to create awareness of the business and business product as well as collect information on customer’s wants and preferences. It is the marketing team or department that creates a link between the business and its customers. They are the intermediaries between the business and the customer. They exercise the information flow as well as answering questions to the customers relating to the products and services your business offers.
Consumer behavior and customer feedback on product consumption are what dictate the nature of a product you will design. Without the customer's perspective on the glimpse, you will end up designing a product that will not sell. This proves that the achievement of the organization's objective is determined by every department.
Examples of Marketing KPI
Marketing KPI as we have said is a performance monitor that tracks the marketing department process that is crucial to performance. In the marketing department, the number of the key process will form the example in which KPI track and evaluate performance.
The highlighted problem or defined problem that needs to be tracked is what makes KPI essential. I mean you will not design a KPI because it helps track performance; you design because there is that key process that needs to be tracked. These are the most important KPI that are required in Marketing, a must tracked process to ensure the success of the department.
Marketing Qualified Leads (MQL)
MQL simply refers to a lead that is more likely to become a customer as compared to other leads. The information on how MQL is obtained is based on the web pages a person has visited, engaged and the downloaded content.
Your MQL will be more efficient if your sales team sits down and determine the activities, demography, and behaviors that will make your MQL. The lead definitions you create allow you to assign points the values that form your lead scoring system for various leads qualification orders. Your lead intelligence is often informed by closed-loop analytics. This ensures high-quality leads and improves sales team productivity that are aligned to your sales and marketing goals.
Sales Qualified Leads (SQL)
In digital and outbound sales and marketing, we focus on segmenting leads to qualified and unqualified leads. Qualified Lead refers to a completed or in process natured camping cycle that the customer has closed on their terms.
Unqualified lead is a lead that has not been natured enough to lead to a close sales cycle. This unqualified leads are due to customer’s uncertainty about what your business offers. SQL is a prospect by which the marketing department creates and approved through vetting by the sales team.
Funnel Conversion Rates
The funnel conversion rate is an e-commerce phrase that describes the journey of consumers' responses on an internet advertised product. Consumers search for products and navigate on an e-commerce website with a small certain percentage converting into a sale. The metaphoric word ‘funnel’, is used to describe the way consumers are guided to a goal through a few navigation steps.
The advertising efforts take the upper part of a funnel then down to the opportunity available, followed by a trial group of the user who tries the products and finally down out of the funnel is the win, a converted sale. In other words, I can say the advertised product is filtered in a funnel. Remember the lighter the liquid in a funnel the upper part it occupies. The same principle here is applied; advertising effort is wide and broad at initially.
After creating awareness of the brand you realize the opportunity, available market interested in the brand. Only a percentage of the interested will give a try of the brand and finally not all the consumers who tried your brand will like. Therefore the converted sales are the customers who liked the product. This is the principle that funnel conversion rate uses.
I said before that the main goal of the marketing department is creating awareness of your business brand or products to facilitate the sales volume. Brand awareness KPI is meant to track the processes by which the department uses to market the brand. The more the consumers are aware of your brand the more relative resulting sales are recorded.
Brand awareness is the extent of how knowledgeable a consumer is familiar with your brand. There are several aspects a consumer asks before they make a buy decision. Consumers are so sensitive in the quality, image and the associated image of the brand before they decide to use the products. Brand awareness KPI is aimed at tracking metrics on how well your brand is known in the market.
Customer engagement as the phrase suggests means the communication between the business and the external environment, the customer. Although there are internal customers, most of the marketing data are sourced from the external customer. Customer engagement is that connection where a customer gets involved through various channels of correspondence.
A KPI that tract the customer bases the monitoring on features like customer reaction, interaction, effect or the entire customer experience. This interaction mainly takes place online and offline. Online interaction takes place on discussion forums or blog on your business website. This customer interaction helps you expand the customer’s knowledge of your brand and at the same time gets customer feedback and expectations.
The marketing department has always hold customer advocacy as their key goal even before the online user generated content. Therefore, as the online user-generated content rises it has taken the stage as customer interaction became convenient and effective. Unlike the previous constant bother on customers which regularly end in vain, customer takes their free time to browse through your brand. Customer interaction is aimed at building customer loyalty and long-term interaction.
Marketing spend per customer
Marketing spends per customer or Customer Acquisition Cost (CAC) is simply the marketing expense spent on acquiring a new customer. It is calculated by dividing the total expenses spent on acquisition over the total number of customers acquired.
CAC has lift a lid open on tracking consumers, paving way for many companies to make informed decisions based on actual and real-time consumer information. Along with the emergency of internet companies, CAC growth has spread all over the world with its great impact and usage boosted by the web-based advertising campaigns.
I must emphasize that this CAC KPI metrics are the most important metrics that every business must implement and track. The data metrics in CAC does not only help your business make informed decision, it also a feature that attracts investors who analyze the scalability of new internet technology companies. Investors are more concerned with the current relationship and not the promising future. Although they still consider the future, the present relationship is what counts most thus CAC counts in your business.
Return on marketing investment (ROMI)
Marketing Return on Investment is the profit realized by the business that is attributed to marketing. It is net marketing spending divided by marketing invested. ROMI metrics are not the same as your Return on Investment (ROI) metrics you are used to. They are difference when you are tracking ROMI metrics, the marketing investment is risked and usually a current expense i.e. operational expenditure.
While ROI is simple and easy to tie to direct leads, ROMI is the degree to which the marketing processes contribute to the business profit. It is important to tie all your profit to all the processes to evaluate each performance. Imagine you engaging in marketing leads that you do not know whether you are benefiting from. It is easy to drain your resource on a more useless process that adds no value to your business objective.
The lifetime value of a customer (LTV)
Customer lifetime value refers to the total expected amount of money a customer will spend on your brand or in your business. To calculate the Customer lifetime value you have to calculate the average purchase and multiply by the frequency rate by which the customer purchases the product.
This KPI is important when making decisions on the kind of customers to acquire. Remember that customers with the same consumer behavior tend to exhibit the same characters throughout the life span of a brand. I am saying this because when evaluating whether to invest in the acquisition of a new customer exhibiting the same consumer behavior, you based on the ratio of the existing customer value. LVT is also used to calculate customer equity.
Customer retention is the action or measure that the company takes to ensure there is no loss of customer and maintain long-term customer relationships. Business activities and action that helps retain customers are tracked to ensure they remain effective. You may think that customer acquisition is expensive and a risked process but customer loss is quite a drawback in your business.
A loyal customer is worth keeping and maintaining since they are potentially the secret intermediaries between the new potential customers and your brand. Consumers tend to have classes and groups that are influence by the same factor. Acquiring a customer from a particular class of living is a potential lead that will influence the close acquaintance. They become marketing agents once they are loyal to your products.
Why does the business want to retain customers yet there is always available new market to venture into? Business initiate customer retention programs to ensure that they retain many customers as possible. Such programs may be done through customer loyalty and brand loyalty.
Remember a lost customer or customer defection is a big loss business will suffer. First, the lost customer is a percentage of the whole available market that you fight every day to claim. A customer defection means a decrease in your market share.
Secondly, customer loss is simply a decrease in sales volume and a decrease in sales transform to low sales revenue and profit margin. A customer defection means a shift to a substitute product or the same competitor product available in the market. This means your competitor is getting stronger and more competitive. Finally, it means that it is an expense knocking on your door to replace or increase brand awareness and stop further customer loss.
Which content do Marketing KPI tracks?
Performance tracking is a crucial process of constantly monitoring your key performance processes and addressing the arising problem that may affect performance. This constant monitoring requires resources, it consumes the resource. Therefore it has to generate an outcome or earn you an advantage or an opportunity to grow. Every invested resource in vain is a loss to a business. Therefore, all investments that reflect a desirable outcome or achievement of a goal are worthy.
The top metrics for modern marketing teams must be the key process that yields or push your business towards achieving its goals. Let's highlight this marketing KPI metric every marketing department will track:
- Social shares
- Website traffic
- Average time spent on page
- Bounce rate
- Email subscribers
- Lead magnet downloads
How to make marketing metrics effective
We have talked about Marketing KPI content metrics and know we all know how important they are and the best marketing content to track. It is important to have effective KPI metrics that are easily managed. In tracking Marketing content these software tools helps you to manage, analyze and design the metrics content.
One of the global performance and availability monitoring solutions for your marketing content websites, applications and servers are Pingdom. With Pingdom comprehensive monitoring platform, you can deliver the best possible web experience to your customers.
Business is a functioning unit it is not an island standing alone and when an incident occurs, you'll want your whole team alerted. With Pingdom's alerting, your entire team or single users is notified of the problem and therefore a timely solution is imminent.
You will also enjoy Pingdom Ideal Website Load Time. Customers can access your web in 2 to 5 seconds. However, each second beyond 2 seconds results in greater bounce rates. 40% of polled internet users abandon a site if it takes longer than 3 seconds to load. Moreover, almost 50% of customers expect the business web to load within 2 seconds. This ensures an efficient customer experience on your websites.
SEMrush is a software that helps companies run digital marketing methods, like SEO campaigns. This SEMrush is an all-in-one digital marketing program that helps you run SEO, pay-per-click (PPC) , social media , and content marketing campaigns.
With SEMrush, you will identify the trends that occur within your business niche. It attends your on-page SEO and helps you improve your pages. This allows you to understand your page better and optimize it for SEO, thus, a better lead generation. SEMrush is an SEO tool that does all your web work, talk of keyword research, tracking the keyword strategy used by your competition, runs SEO audit of your blog, looks for backlinks opportunities and lots more. SEMrush is used by several businesses, big and small and has earned trust from internet marketers all over the world
You can start with SEMrush free account, but you will be limited in your ability to pull data. When you first sign up for SEMrush, you get the option of starting with a 7-day free trial of either a Pro or Guru Subscription. SEMRush tools are specified in finding profitable keywords. We're now in the world where SEO is at the forefront of a successful blog. SEMRush is a program many new and older bloggers are using to optimize their sites, create the content their audience wants and create a better experience for their visitors.
SEMrush Rank is SEMrush's proprietary ranking of the domains on the Internet with the highest organic visibility based on how much estimated monthly traffic they are getting from organic search. The ranking is based on monthly data from the SEMrush database and can be pulled for any of our regional databases.
Buzzsumo is a powerful online tool allowing your business to find out what content is popular by topic or on any website. Believe me, it can take you hours scanning all the various social sites to find out what people are talking about and what their concerns and needs are. With buzzsumo be assured of the great experience of being on the know with just a click.
This BUZZsumo is indeed a great tool, just imagine in a 4 simple step-process below it helps you design a content strategy.
- Find What's Getting Shared on Social Media
- Find Influencers Who Can Share Your Message
- Evaluate Your Current Topics
- Analyze Data and Trends to Create High-Performing Content.
In a nutshell
The main reason why your business needs to understand and know the right content they track in marketing is the brand image. Some products top the search engine list not because they are best but the image marketing team creates on that brand is amazing. Remember to get it all right stick to SEO optimize marketing content.