How to Define Marketing KPIs to Drive ROI
They say that what gets measured gets done. Although a marketing strategy can have softer purposes, like awareness and brand recognition, the final goal should always be generating revenue. Enter the KPIs (key process indicators). This is a way to put a number on a dream and create an actionable metric.
However, itâ€™s worth noticing that not any metric is a KPI and not all KPIs have a connection to actual profit. The best way to create valuable KPIs is to start with the result in mind and think about the best ways to get there.
Define Your Vision
Think about the best-case scenario and write down the result you would consider excellent. For example, if you just launched your business, you could hope for $10K sales in the first quarter. Try to be as specific as possible and donâ€™t be afraid to dream big.
Remember to create S.M.A.R.T. goals at this stage:
Create a Strategy
Once you know the general direction, ask yourself how you can get there. From a marketing perspective, this could mean creating a sales funnel, revamping your social media pages or using new channels. Think about the vision you have and what are the best ways to get there.
Design a Plan
Next, break down the big goal into daily or even hourly smaller chunks. Identify where are your target clients and be present in those channels. Create a simple checklist to be completed. Make sure the sum of the tasks on the list is more than your objective. Always allow a margin.
You donâ€™t have to obsess daily over meeting the goal, but at least a weekly check can help you stay on track. If you fail to comply with your targets three or four consecutive weeks, maybe an assessment and redefining is a good idea.
Each business is different, but here are a few marketing KPIs that trigger changes in the ROI. You can use these as inspiration to define your own:
- Cost per lead- divide it by inbound and outbound
- Traffic to lead ratio
- Lead to customer ratio
- Landing pages conversions
- Social media conversions
Still feel confused and overwhelmed by the need to measure? Get out a pen and paper and start drafting a plan before you waste any more money on likes and impressions. You spend hard cash to get even more.