Small business owners recognize that online marketing plays a critical role in boosting their brand awareness, increasing their prospects and leads, and gaining new customers. But how can they track whether their campaign has met its short-term and long-term goals?
Key Performance Indicators (KPI) are great tools that small businesses can use to measure their marketing campaign’s success.
These metrics can help companies measure whether their marketing campaigns have reached their targets. In this article, small businesses will learn about 17 KPIs that can track the effectiveness of their marketing campaign.
What’s a Key Performance Indicator (KPI)?
Key Performance Indicators (KPI) are values that measure how effectively a company has achieved its objectives in specific business areas. They can track success in different fields that include sales, budgetary, and operational goals.
Small businesses can also use KPIs to measure the reach of their marketing campaigns. For instance, companies can use these metrics to track the performance of their SEO, advertising, and social media campaigns. The metrics they follow will depend on each company’s objectives.
In the following section, we’ll tell you’ll learn 17 KPIs are you should use to track the success of your marketing campaign.
KPIs Businesses Can Use to Track their Campaign’s Performance
There are 17 marketing KPIs your small business should follow to determine when optimizing its local marketing campaign. Companies should pay attention to the following metrics:
1. Customer Acquisition Costs (CAC) – This value measures the maximum amount it can spend to attract new customers without losing money. CAC measures how high it costs to convert potential leads into clients. It will also tell your max spend to attract new customers without losing money. CACs can also help small businesses invest money in marketing campaigns that provide the most success.
2. Click Through Rate (CTR) – It is a metric that tells small businesses how engaging their web content is for online visitors. Higher CTRs correlate with larger leads and conversions. For instance, an exceptional CTR will show small businesses which campaigns resonate best with their customers.
3. Conversion Rate – This KPI shows businesses how many visitors they successfully convince to take action. These can include signing up for a demo, PDF, or becoming a customer. Conversion rates can also show companies how many visitors their marketing campaigns have turned into customers.
4. Time on Page – The period readers spend on a company’s page shows whether their content is engaging. Most users spend 37 seconds reading articles. If visitors spend a long time on each page, it can show that the content is engaging. This metric helps companies measure the success of Search Engine Optimization campaigns.
5. Page Views – When companies combine this KPI with “Time on Page,” it helps track how well blog pages are doing with their customers. For B2B and B2C brands, it shows which products are most popular with customers.
6. Customer Lifetime Value (CLTV) – This KPI helps businesses to determine how much money to spend on a customer. It tells companies how much specific clients are worth to your brand. The metric also tells businesses about their overall value and how much they should invest in customer retention.
7. Sales Qualified Leads (SQL) – When companies nurture sales qualified leads they can Sales Qualified Leads. Your marketing team vets these prospective clients who ready to speak with your sales team. It also helps you understand how many leads are available to talk to your sales team.
8. Follower Growth – If a business manages social media sites, it probably wants to track how much its social media followers have expanded because of a marketing campaign. Follower growth helps companies track how well they are interacting with their audience. It also measures how much the campaign increased brand awareness.
9. Return on Investment (Marketing) – According to Harvard Business Review, Marketing Rate of Investment (MROI) allows companies to measure how much they’ve earned from their marketing spend.
Marketing ROI uses the following formula: (Sales Growth – Marketing Cost)/Marketing Cost = ROI.
If a business cannot attribute marketing ROI to sales growth, use the following formula: (Sales Growth – Average Organic Sales Growth – Marketing Costs)/Marketing Costs = ROI.
It may be difficult for small businesses to attribute increases in their sales to their marketing campaign.
10. Sales revenue – These are the revenues that companies earn from inbound marketing campaigns and sales.
11. Return on Ad Spend (ROAS) – According to Hubspot, ROAS is a KPI that companies can use the measure the success of advertising campaigns.
For instance, if you made $10 for every $2 spent on advertising, it means your campaign’s ROI is 10:2.
It measures revenues that are generated compared to every dollar spent on ad campaigns using a ratio.
12. Leads to Appointments Ratio – Small businesses can follow this metric to measure their lead generations. Companies can track the number of initial leads that turn into appointments. This metric also tells businesses whether their customer journey effectively brings in prospective sales for their companies.
13. Marketing Qualified Leads (MQL) – MQLs are leads who have expressed interest in their company’s business and its products. These individuals have intentionally engaged with their brand voluntarily. For instance, they have downloaded e-commerce items, materials or repeatedly visited your site. They are more likely to become a customer if the business nurtures this relationship. This KPI will help companies understand how many leads their team brings into their business.
14. Website Visitors –This important KPI can help you measure the success of several campaigns. It also tracks how many website visitors they attract through their marketing campaigns. For instance, your unique website visitors are those who are first-time visitors to their site for specified periods. This metric can tell companies how many referrals social media, organic traffic, and other campaigns have generated.
15. Referral Traffic – This KPI helps small businesses learn about the origins of their web visitors. It can help them create a more effective marketing strategy and spend their budgets wisely. It can also help companies find out how people have found their site.
16. Net Promoter Score (NPS) – This metric helps small businesses measure the customers’ experiences and satisfaction with a company. It also gauges how likely these clients will recommend a small business to customers. NPS ranges between -100 and +100.
17. Organic Traffic – This term refers to visitors that arrive at a company’s page because of unpaid organic search results. It differs from paid traffic generated by ads.
In conclusion, these key performance indicators can help your business get the most out of the marketing your business runs on its different platforms.
Does your Tampa business need an effective marketing campaign to rise to the top of local search pack results? Dialed-In Local can help. Our marketing experts can take your small business to the next level. For more information, contact us today.