More than a hundred years ago, John Wanamaker infamously stated, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Today almost everything is trackable. But having the THEORETIC ability to track what marketing channels, offers, sales reps, products is one thing, the actual PRACTICAL implementation is another.
Example: We live in a mobile world – no question. For some of us, our mobile phones have become almost like a third hand. That’s the consumer side.
However, on the business side, a 2016 Forrester Study has revealed that 67% of marketers are NOT able to track/measure ROI on their mobile marketing activities. That includes such prominent channels such as Google, Instagram, Facebook, LinkedIn or SnapChat. What it means is that at least two thirds of all businesses out there are not being able to track the most prominent user channel for almost any industry. And those who are able…do they? Do you?
How does that all fit together?
It all starts by knowing what KPIs are and how they work:
Using the right KPIs and implementing them in a systematic way is the key to measuring the accurate performance of your business and marketing campaigns.
In 1981, George T Doran established the S.M.A.R.T. criteria which explain that KPIs must be:
Specific – Make the description as simple and clear as possible.
Measurable – You must be able to accurately and regularly measure and track each KPI.
Attainable – Can you directly affect this KPI? In other words, is this something adjustable that can be fixed?
Relevant – Does this matter? You need to question whether a KPI matters or not.
Timely – Can you track these KPIs based on a monthly, quarterly, and annual basis? If you are you able to react to the information quickly enough to make a difference?
The magic happens by connecting the above-mentioned criteria to your business goals. Adjusting KPIs based on your marketing funnels and business is not only your freedom but also an obligation. The practice of regularly revisiting those KPIs builds a healthy dialogue around what really matters for the company, keeps goals top of your mind and gets the team into the habit of thinking critically about advertising strategy and tactics.
Tailor your Basic Marketing KPIs
In a digital world, we are able to track not only the start- and end result. By doing that project stakeholders can improve their performance based on milestone KPIs along the way. If you want to start with KPI tracking in your sales & marketing department, we suggest to start with the following:
- ROI = Return-On-Invest.
“How much did I invest and what did I get out of it?
- Number of Leads
“How many new business inquiries did I receive over the last x days?”
- CPL = Cost-Per-Lead
Your investment divided by the number of leads.
- Call-Pick-Up Ratio
“How many of my inbound calls were answered/missed by my sales team instantly?”
- Lead to Proposal Ratio
“How many leads reached proposal stage?”
- Proposal-to-closure Ratio
“How many of my proposals turned into paying clients?”
- CPA = Cost per acquisition
“How much did it cost me to generate a new client?”
- CPA by channel
“How much did it cost me to generate a new client from Instagram vs Google Search vs Email Newsletters?”
Paying attention to KPIs allows you to focus on the most significant metrics that affect the performance of your marketing activities.
Think of your individualized health check: The doctor usually takes a few vital measurements to examine the functions of your body but focuses only on the suspected areas. Consequently, the doctor saves much time and effort without testing less relevant functions.
Like a health report, KPIs will give an overall health check for your marketing activities.
If you do not have your set of KPIs to measure and track your marketing activities yet, Heroleads can help you to easily set and track goals and KPIs.
We measure KPIs and generate success. Trackable.
For more information, please Contact Us.