Marketing KPI’s: 4 Things You’re Forgetting To Do Which Will Fail You

What is Marketing KPI?

Key performance parameters; it is about important factors that are taken into consideration to measure the performance.

Let me try to explain it with an example;

If, we want to see if an organization is growing, what all things we look in to and take judgment?

• Increase in Revenue
• Increase in employees
• And increase in sales & other factors

All the above factors are called as KPI

So, if we want to see the growth of a company, we check the above-mentioned KPI on year on year basis and make the decision.

I have created a very handy KPI metrics Tool for you to understand it and follow it accordingly.

Digital Marketing KPIs Examples:-

Marketing Objective	Create Brand Awareness	Generate Online Leads	Drive Customers to Store
What Marketing channels to use?	TV Video Social Media Rich Media Display	Paid and organic search Display Online referrals Website content	Mobile web and apps Email Print Radio
Marketing KPIs (Key Performance Indicators)	GRPs Brand lift Video/Rich media engagement	Number of leadsCPA( Cost per Acquisition) ROAS( Return on Ad Spend)	In-store visits Number of purchases Purchase value
Tools to use to measure the performance	TV viewership Consumer panels Web analytics Brand surveys	Conversion tracking Web analytics CRM(Customer relationship Management)	Mobile app analytics CRM Transaction data

Which path does the customer take to reach the desired Marketing KPI?

If you want to measure sales at your store, then what would be the path or journey of the customer?

See below in this illustration;

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In today’s time, the customer journey passes through various touchpoints and each touchpoint is equally important and can be an opportunity to convert into a sale.

Four basic views on performance measurement

1. Focus on Right Metrics
2. Value your best customer
3. Attribute the value across the journey
4. Check Marketing Impact

Focus on Right Metrics

In the above-mentioned table; you saw a detailed explanation of the different metrics and Marketing KPI’s.

Now We look at

Value your Best Customer;

Instead of measuring transactions alone, create the lifetime value (LTV) you derive from your customer’s sales data. For example, you may discover that 20% of your customers are driving 80% of your profits.

By focusing on getting to know those best customers – as well as how you acquired them and how you can find and retain more like them—you can cut costs and increase revenues.

Here is a quick tip to measure the customer sales data;

Truly Know Your customers	Distinguish between the Best Customers and Time wasters	Find and Retain more Best Customers
Do deep study of your customer base: • Who are they? • Where did they come from? • How long do they stay with you? • How much have they spent over time (Given Business)? • And how much have they cost?   Use Analytical Tools to measure all these data.	Use your CRM system and Website analytics to segment your customer base. • Look for segments of customers who completed High-value purchase. • Identify segments of Customers who purchased repeatedly (look for multiple and high-value sales). • Find segments that perform desired behaviors on your website. • Determine which segments are not performing well.	• Identify which (combination of) marketing channels and keywords helped you acquire your best customers; then double down on those. • Use marketing tools to find more potential customers who closely resemble your best existing customers. • Use technologies like personalization and remarketing to strengthen relationships and drive long-term value.   • Reduce waste by decreasing Marketing spend on customer segments that are not performing well.

After this now let’s look at

Attribute Value to all the touchpoints

How do you know what’s working in your marketing and what’s not? Start by identifying the role of each touchpoint along the customer’s journey.

Marketing attribution can help you to optimize your digital campaigns. Marketing attribution, broadly speaking, means dividing up the value of an online sale (or conversion) and distributing fractions of that value across the different touchpoints that led to the sale, from a display ad seen last month to a search ad clicked this morning

Attribution can be done with spreadsheets, rules-based modeling software or even sophisticated data-driven algorithms. Whatever attribution method you choose for your business, make sure you continue to adapt and measure results so you can see what works for your business. That’s the way to get the most out of your measurements and your marketing.

Now the last step is to

Check the Marketing Impact

Constantly checking the marketing impact helps you to save costs and energy to focus on key marketing programs. The best way to check this is to keep experimenting and whatever works, retain it and discard the not working ones.

And also from time to time keep on experimenting; Follow this testing cycle to keep a tab on the performance.

Summary

Checklist: Measure what matters most

Don’t wait until after you’ve run your campaign to think about measurement. Establish your measurement-focused marketing strategy before you start it. Here’s a recap of how to do it:

Focus on your true business objectives

Make sure your Marketing KPI are in line with the business objective and goals that you’re trying to solve. Don’t let organizational silos stop you from measuring what matters most.

Measure customers, not just transactions

Measure long-term customer value instead of pure revenue, and look at which channels bring you your best customers. You’ll develop stronger, more profitable relationships and avoid wasting money and effort on customers who cost more than they’re worth.

Attribute value across the whole customer journey

Understand what your customer journey looks like, and think holistically about your marketing. Attribute credit to various marketing touchpoints to uncover insights and opportunities that will help you invest more wisely.

Prove the incremental impact of your marketing spend

Identify vital channels and new opportunities—then experiment to prove the value of your efforts (and stop what’s not working), this will significantly help you with identifying the marketing KPI’s. Make experimentation a regular part of marketing cycles: keep testing and keep improving.