Key Performance Indicators (KPIs) are necessary to have for every business. They help in determining how well the company is doing, in light of the set goals and objectives. As time goes by and technology advances, the needs of people keep changing, which means the objectives and goals of businesses must also adjust with them. It is why there are a couple of KPIs that every business owner must deem necessary in running their business successfully. With so many areas to divert your attention to, here are some of the most significant KPIs you should measure for your business:
The whole point of marketing is to up the sales of products and services, which undoubtedly makes sales growth a necessary KPI to track. Depending on the sales revenue you realize, you must be in a position to weed out all the marketing strategies that are not impacting sales positively. By measuring sales growth, you are on a path of identification of growth trends, which means that you will invest more on the products and services that are doing well, especially if all your marketing efforts have equally gone out to push all your products and services.
Lifetime Value of a Customer
As a business owner, you must be able to weigh out how much value you can get from one customer. The proper measure of the lifetime value of your customers should be based on all sales your average customer has initiated throughout the relationship. Since you have invested a lot of time to keep in touch, communicate and sustain your relationship with your customers, are they worth it? It is a proper way to measure a business’s ROI per customer. Be keen, therefore, with any return purchases and keep track of the purchasing habits of your regular customers.
A website is essentially the face of your company online, regardless of how many customers you have on your physical store, the traffic on your site can tell you a lot about the nature of the marketing messages you have been sharing on the online platforms. The more your website traffic is over a certain marketing campaign period, the better it is your marketing messages are performing, regarding reaching a wide market range and reaching the right target audience. What you need to be keen on when it comes to website traffic is, which sessions are attracting more people, number of frequent users and new visitors, number of page views, page per session, average session duration, bounce rates, among others.
Social Media Reach and Engagement
In this digital era, you cannot ignore digital marketing as a marketing strategy in your company. Ideally, the core of digital marketing today is social media, which means you must be thorough in analyzing social media reach and engagement as a KPI. At the least of things, track your growth regarding followers, as well as the impressions that the posts receive. As your social following grows, so should the reach of your content, which means you need to keep increasing in audience engagement, reach and post impressions.
Actions Taken by the Target Audience
For every marketing message, there is a clear call-to-action that is attached. Therefore, you need to weigh out how many people are taking any action for your marketing messages. For one, re people subscribing to your services? Are the sales going up? Are people asking questions? Do you have more shares? Inquiries? Installations? Whatever your main call-to-action is for every campaign season, make the call-to-action a KPI to track the actions taken by your target audience thereof.
The amount of revenue you generate form any effort goes a long way in weighing out the ROI of your company over a certain period. Ideally, if the marketing efforts do not justify your continued investment in particular marketing methods and strategies, then is there a need to invest in them? When it comes to revenue, the idea is to contrast it to the profits that come forth from every of your marketing investment.
There is a ton of things you can measure to gauge the success of your marketing efforts and the productivity of your marketing team as a business owner. However, as you pursue all of them, ensure that the markers mentioned above, top your list. Find out more on tracking your rank position here.