\The modern marketing world is centred around data. This data-driven requirement forces marketers to offer evidence that their marketing activities are achieving desired business goals. In this context, if you want to optimize your marketing efforts, you need to track more and more marketing KPIs.
Following are the top five marketing KPIs that you should be tracking in H2 so that you can improve marketing outcomes.
- Customer Lifetime Value
Customer Lifetime Value (CLV) is a metric that represents how much revenue a customer is going to contribute during the period they spent as your customer. By measuring customer acquisition cost, companies can calculate customer lifetime value and evaluate the expected time to regain the investment needed to acquire a new customer.
Firstly, companies need to calculate the average purchase value. After that, multiply the acquired number by the average purchase frequency. Once the average customer lifespan is calculated, you need to multiply that value by customer value to get customer lifetime value.
Nevertheless, how is Customer Lifetime Value is relevant? By gaining insights into your Customer Lifetime Value, you can maximize your profits while also taking measures to retain your existing customers.
- Traffic-to-Customer ratio
It is a ratio of your website visitors to converted customers at any given time. This particular KPI is beneficial as it tells you about the quality of your website traffic. It especially becomes essential for those businesses that have their website as an effective business tool. For example. eCommerce sites.
However, how exactly is the traffic-to-customer ratio helps your business? Let’s say your business has a user-friendly website. Nevertheless, if you cannot optimize your traffic-to-customer ratio, your investment won’t fetch you meaningful returns. By measuring the traffic-to-customer ratio, you can pinpoint conversion problems, if any and resolve them as per requirements.
Moreover, you can check if the changes you have made to your website have enhanced conversion rates or not. By making informed decisions about the changes that you would make to your website, you can save your business from losing potential customers.
For instance, if your website has 1000 visitors and you could convert 100 customers in a month. It implies that the traffic-to-customer ratio for your website is 10:1. Or, your conversion rate is 10 per cent in simple words.
- Average Time of Conversion
It is the period between the first contact with a prospective customer and when they complete a purchase with you. It is averaged across all customer purchases.
The average time of conversion can be calculated by multiplying conversion rate with conversion volume.
This KPI helps you predict what your sales figures will look like in the near future once you start to get a particular number of prospective customers entering the marketing funnel. Moreover, you can segment the average sales cycle length by lead source, prospect strength, and the kind of product you are selling. Ultimately, you can gauge opportunities and reduce the sales cycle length accordingly.
- Call-to-Action content
A compelling Call-to-Action makes it easier for potential customers which action they should follow next and helps eliminate friction as the user moves down the sales funnel. The effectiveness of a call-to-action can be evaluated through a conversion formula. This formula is calculated by dividing the number of clicks by the number of impressions.
The primary intent behind implementing this KPI is to encourage your customers to share more information about them with you. You must have seen CTAs on most eCommerce sites in terms of Checkout, Buy now, Add to wishlist, or Add to cart.
Consider opting for an A/B testing platform that offers you data-backed information that ultimately helps you develop the highest-converting CTA content.
- Brand mentions
Brand mentions help you know what your target audience think about your brand. It will help you root out any misconceptions, rumours, or PR related issues about your brand so that you can address them immediately.
Brand mentions come up with multiple filters and accuracy algorithms that manage to display only relevant mentions. Besides that, social listening tools help you refine your search.
Brand mentions allow you to track your social mentions, media mentions, or mentions acquired from relationships you built with other companies or influencers, and so on.
As many businesses have started to incline towards data-driven marketing, it becomes inevitable for you to track various KPIs to perfect your marketing efforts. However, which KPIs serve to improve your marketing health and which aren’t essential topics of consideration.
This blog has explained the top five KPIs you should start tracking in H2 to optimize your marketing activities. Thereby improve your overall marketing outcomes.