A KPI, or Key Performance Indicator, is a numerical value that measures your performance in a specific area. You can use KPIs to evaluate the success of individual campaigns or your marketing efforts as a whole. For instance, brand awareness isn’t a KPI, but the number of brand mentions on social media is a KPI. Cost per acquisition is one of the most important marketing KPIs metrics you can track
.
It helps you focus on the channels and campaigns most likely to produce higher converting customers and ensure a steady stream of revenue. Net profit margin is one of the most important marketing KPIs. Net profit margin helps you measure the profits that your marketing agency has made after paying for all the expenses including material and labor costs, operating expenses, taxes and overhead expenses. A customer’s Facebook ad with a CTR of 15%? Fantastic.
Is a 100% year-on-year increase in revenue for your client’s website as a result of your SEO strategy? Even better. In a highly competitive marketing agency landscape, you need to have an undeterred focus on finances, effectiveness of the campaigns, performance and profitability in order to succeed and grow. Marketing agencies spend on digital ads, sponsored social media posts, SEO to bring organic traffic and various other channels to bring quality leads to customers. Social Media Marketing KPIs measure the impact your social media strategy has on your overall sales and marketing performance and help to demonstrate the overall value of an investment in social media
.
While many KPIs are focused on a particular part of the marketing mix, customer KPIs can be used to look at how your marketing work is performing as a whole. In a digital world, where everything is driven by technology, verifying the effectiveness of marketing initiatives, with numbers as proof of success, is the first priority of a marketing agency. Marketing agencies measure their success by the performance of their financial KPIs and metrics related to the performance of their marketing campaigns. But when it comes to keeping your eyes on the figures, it’s easy to put your clients first and leave your marketing agency to fall behind
.
You can find more stats and insights into each specific marketing source in the full blog (average conversion rate by industry and marketing source), but here’s a quick look at the average conversion rate by industry. Marketing metrics also let agencies make data-driven decisions that can have a significant impact on profitability. The primary objectives of a marketing agency would be to build brands, create visibility for those brands, inspire audiences to reach out, generate leads for the clients, communicate with the leads through various channels and push them towards sales conversion. For most marketing metrics, you can find easy-to-use software tools that will take care of marketing reports so you can track your KPIs
.
It’s so valuable that 59% of SaaS marketers consider customer lifetime value a primary metric to demonstrate marketing success. We provide marketers with the data they need to connect their marketing activities to closed revenue and help them track important metrics like ROI, ROAS and CPA. When it comes to a marketing agency, success can be measured by how much revenue each client brings to your agency for the amount of resources you spend working for them. These marketing metrics help agencies constantly monitor the performance of campaigns, finances and business performance, and make improvements wherever necessary.