Dec 18, 2019 11:21 AM EST
Key Performance Indicators Every Marketing Major Should Watch Out For
What is a Marketing Manager?
Every marketing student in college aims to be a successful manager someday. These students should know that many external factors can affect their future job.
First, the marketing manager, as the person who manages the promotion and advertisement of a business product or service, must possess an outgoing, spontaneous, and sociable characteristic. These are only the basics as they also need to maintain their focus and professionalism in terms of meeting the budget constraints and due dates.
They are also responsible in accomplishing a variety of tasks, like proper estimation and allocation of budget for marketing campaigns, submission of proposals to be approved, engagement with advertising companies, closing a lot of negotiations, preparing sales and advertising contracts, reassuring the quality and content of the online advertisement and tv commercials.
What is the Key Performance Indicator?
KPIs or Key Performance Indicators in marketing are the metrics that can prove everything that you do as a professional. It can be used to estimate the results for the whole organization or a specific team.
The key information is that, if you plan to engage with a long-term business goal, you should assure that marketing and sales departments have planned and detailed KPIs to keep them on the right track.
Here is the list of Marketing KPIs that you need to keep on track.
- Sales Revenue
Does your company gain an increase in revenue through your marketing campaign? Monitoring your sales revenue is crucial to know how your marketing campaign impacts sales. Certainly, a company will not spend money if it will not generate monetary value.
- Cost Per Lead
Be wise when weighing your customer acquisition costs both for inbound and outbound marketing. This requires the integration of marketing automation and CRM platforms when calculating your customer acquisition costs.
Calculating CAC (Customer Acquisition Cost) for inbound marketing, relevant costs include:
- Manpower (creative and technical)
- Technology and software
- General overhead
Calculating CAC (Customer Acquisition Cost) for outbound marketing, relevant costs include:
- Marketing distribution
- Manpower (sales and marketing)
- General overhead
- Customer Lifetime Value
Customer Lifetime Value or CVL is a forecast of all the value a business will derive from its entire relationship with a customer.
Here is how to calculate customer lifetime value.
(Average sale per customer) x (Average number of times a customer buys per year) x (Average retention time in months or years for a typical customer)
The lifetime value of your customers can be increased by developing and continuously nurturing your leading campaigns for your existing customers.
- Social Media Traffic
Clients are cautious regarding the importance of social media in their inbound marketing, but as the years passed by it has proven priceless to every campaign's success. Metrics you can apply to show the importance and impact of social media on your marketing efforts include:
- Number of lead conversions gathered from each social media channel
- Number of customer conversions from the social media channel
- Percentage of traffic connected with social media channels
When using social media sites like Instagram, Twitter, Facebook, LinkedIn, Pinterest, YouTube and Instagram you might not have all the time in the world to effectively maximize the benefits of every platform, but breaking them down by the number of leads, customers, and percentage of traffic coming from each will help you conclude on which areas to put extra effort.
- Mobile Traffic
The structure and design of your website should be compatible to any king of techy gadgets, especially for mobile phones. Many people are browsing the web exclusively from their smartphones and device. Google's algorithm will automatically generate those sites that are optimized for mobile, you must know the needs of your visitors.
Focus on the following:
- Mobile traffic
- Number of lead conversions from mobile devices
- Bounce rates from mobile devices
- Conversion rates from mobile-optimized landing pages
- Popular mobile devices
Pay attention to how does your website appears to the mobile phones of netizens to improve better engagement and connection.
Join the Conversation