If you are into business, you already know how important it is to keep a check over the performance of the employees and company to make the necessary changes that will possibly help make your business a big success. But how can you check the performance?
KPI – A Key Performance Indicator
Anyone who wants to supervise the company’s growth, team task, and efficiency of operations must use KPI evaluation to measure the performance. It is basically a quantifiable measure that has been found highly valuable for evaluating the success of the company or business and employees. It demonstrates how efficiently your business is accomplishing crucial business objectives.
You can implement KPI evaluation at several levels, but it has the best use in assessing the performance and effectiveness of marketing campaigns. With the use of high-level KPIs, you will be able to focus on the complete performance of the company. In contrast, low-level KPIs will allow you to focus on procedures performed in separate departments (HR, sales, marketing, etc.).
These are divided into 5 main classes:
- SEO optimization
- Lead generation
- Paid advertising
- Website & traffic metrics
- Social media tracking
Let’s delve into details…
Return on Investment (ROI)
The best aspect that you should never miss calculating is ROI. Return on Investment ROI) is the best and most preferable KPI to get an idea about how effective your marketing campaign has been. It means “measuring the sales revenue every campaign is bringing on each dollar that you have spent on the overall campaigns”. That is not all, as it also measures the quality of leads your campaigns have generated.
Cost per Win (Sale)
At the end of the day, you must know how your campaign has performed. So, don’t forget to check the “Cost per Win” that will explain the expense of every sale. It absolutely serves as a good indicator helping you make impactful changes in your advertising strategies. This significant metric compares multiple campaigns and lets you identify your company’s growth trends.
Return on Ad Spend (ROAS)
Talking about the specific KPIs, ROAS is at the top that is usually provided in a ratio. It explicitly tells you about the success of your marketing ad campaigns. It will provide you with a detailed comparison between the money that has been generated from sales and the money that you have spent on a promotional campaign.
Always remember The more leads you have – The more sales opportunities you might get!
“Cost per Lead” evaluates the cost-effectiveness of your marketing ad campaigns. It explains whether you have better chances of increasing sales growth or not. Completely focused on the number of total generated leads, it does not focus on the quality of leads.
Simply defined as calculating the %age of visitors who have completed the desired action, whether it is finishing an online form to signing up for a service, or buying your product, the conversion rate is a vital KPI that helps you keep track of your success. It can be done for individual ad campaigns.
To know about the website’s popularity, success and status, you need to check where your website stands on the google page ranking. You must aim to get to the top 10. The rank number determines the authenticity and importance of the website pages. This criterion is directly affected by the quality and quantity of inbound links.
Finding the drop-off points where your visitor or client has left the buying procedure can help you understand the nature and needs of your targeted audience. It is essential for knowing traffic or your sales cycle. With Google Analytics, you can measure and examine the procedure for the sale leads generated by separate marketing campaigns.
What is your main goal of marketing campaigns? To lure the customers! To attract the clients!
Several people are visiting your site daily, and they can turn into potential leads and regular customers. Why not try to know more about them? Website visitors are a vital KPI as they might track the accomplishment of numerous campaigns.
Understanding your website traffic can assist you in determining all-important answers to your questions, such as what they want, what they are searching for in your company, and what they expect to find on your page? Knowing how affianced your audience is is benefiting you in anticipating your next move.
For example, if your site has a multimodal learning niche, your visitors will be teachers and people who are interested in education.
Also known as churn rate, it explains the %age of clients no longer visiting your site or buying your products/using your services. The higher the churn rate, the lesser the effectiveness of the ad campaign.
Many other important aspects can help you measure the effectiveness and performance, including:
- Customer Lifetime Value
- Social Media Reach and Engagement
- Click-through rate on PPC advertising
- Mentions (social media)