These measures include sales revenue and growth, cost per lead, conversion rate, lifetime value of a customer, return on marketing spend, and more. Key Performance Indicators, or KPIs, are metrics used to measure progress toward a specific goal. For marketing agencies, this could be something like improving Conversion Rate by a certain percent, reducing Cost Per Acquisition by a certain amount, or getting into the top 10 SERP for target keywords. Whatever the goal is and it can be almost anything, depending on the project you’re working on, or the specific needs or goals of your client it needs to be something that can be measured quantitively and tracked
over time.
One of the most important goals of marketing is to bring in high-quality leads. To do that, marketing agencies spend on digital ads, sponsored social media posts, SEO to drive organic traffic, and various other paid and organic channels. The effectiveness of marketing initiatives in generating leads can be measured by calculating the amount the agency spends on generating every lead. Marketing-qualified leads are the contacts, leads, and potential customers who consistently engage with your marketing initiatives and show interest in the products you are
marketing.
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. 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. Marketing is continually changing and evolving, and the team of marketing experts at Valve+Meter Performance Marketing understands how to leverage marketing strategies to drive true business value. The effectiveness of your marketing initiatives to generate leads can be measured by calculating the amount the agency spends on bringing every lead.
These marketing metrics help agencies constantly monitor the performance of campaigns, finances and business performance, and make improvements wherever necessary. Net Promoter Score is among those few digital marketing measurement metrics that measure customers’ perception of the brands that your marketing agency works with. Marketing KPIs can help you to clarify the entire process of developing, executing and analyzing your marketing campaigns. Measuring your marketing through the lens of your sales growth is yet another way to add a layer of accountability for marketers and marketing agencies
.
The best part of performance marketing is you can analyze each step of your marketing and customer journey and quickly change, scale, or scrap tactics based on their true business impact. This is where one of the important digital marketing measurement metrics comes into play, namely marketing qualified leads. It 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. However, unlike marketing qualified leads that merely show interest in your marketing communication, the brand and the products that you are marketing, sales qualified leads also show interest in purchasing the products.
To succeed and grow in the highly competitive marketing agency landscape, you need to have an undeterred focus on finances, on the effectiveness of your campaigns, and on performance and profitability.