8 Marketing and Sales KPIs That Your Business Should be Tracking
Business is all about returns on investments. You don’t want to be spending precious time, money, or (wo)manpower on efforts that don’t turn revenue, so it’s important to pay close attention to how each facet of your business and marketing strategy is performing. That’s where KPIs come in.
KPI stands for key performance indicator. They’re measurable demonstrations of how well certain business objectives are doing – the values that tell you whether a particular strategy is succeeding or failing. And though particular methods for evaluating KPIs can vary among businesses and industries, there are a few go-to indicators that all businesses should be looking at.
When it comes to smarketing (the fancy term for integrated sales and marketing metrics and objectives), there are certain data points that all marketing managers should be paying close attention to. Here are eight of them.
1. Percent of content involved in sales process
Research indicates that nearly 70% of the sales process occurs before a buyer initiates a purchase. In order to best integrate sales and marketing, you need to know what content is facilitating the top part of the digital funnel (exposure, discovery, and consideration) and what content is facilitating the bottom part of the digital funnel (conversion, fulfillment, retention). Knowing what purpose the various pieces of content on your site are serving can help you hone in on the content that returns the most value. It will also help with content development and strategizing. The more you understand about how content functions on your site, the better job you can do at marketing it.
2. Leads per offer
Forms, pop-ups, social media, email… however and wherever you choose to display your offers doesn’t matter. What matters is how well those offers generate leads. For each offer you’re running you should be analyzing how many people see the offer versus how many people are entering in their information. There’s a fine line between offers that generate leads and offers that turn people away. Pay attention to what works and what doesn’t work so that you’re not running offers that are ineffective or serving the opposite purpose of what they’re supposed to.
3. Leads that convert into sales
Not all leads are created equal. In fact, for the majority of marketers, only about 5-10% of leads convert. In order to make sure you’re gathering leads that matter, track the percentage of leads that evolve into sales. Most won’t make it through the digital funnel, but you can learn a lot from analyzing the ones that do. Where did they come from? What do they have in common? Use these metrics to help you narrow in on who your customers are and who you’re most likely to reach with your lead outreach efforts.
4. Inbound marketing ROI
All marketing activities should be making you money. Period. If they’re not, swap them out for things that do. There’s a simple formula for determining just how successful your marketing strategies are:
(Sales Growth – Marketing Investment) / Marketing Investment = ROI
This is a crucial sales and marketing metric to understand because it helps you plan both immediate and future actions. Build and improve on what works, and rework or drop what doesn’t. In addition, your inbound marketing ROI will provide you with useful information on your customers’ buying habits and behaviors, your lead generation success rate, your content success rate, and best practices moving forward.
5. Organic traffic rates
For the best ROI, you ideally want most of your incoming traffic to arrive organically. Analyzing your organic traffic rates tells you whether your content, SEO, outreach, and social media efforts are paying off. If they’re not, don’t take that as a sign that you should start funneling money into ads. Look at what marketing strategies are bringing you the most organic traffic, and build out from there.
6. Paid traffic rates
Pay-per-click ads aren’t for everyone, but for those who do use them it’s crucial to determine whether they’re worth the cost. On average, businesses make $3 in revenue for every $1.60 they spend on Google AdWords. That’s not bad, but it’s also not a guarantee. Always know what return you’re getting on your paid ads, and frequently evaluate whether they’re bringing in enough traffic and conversions to make them worthwhile.
7. Mobile traffic rates
As more people search the web from their smartphones it’s crucial to accommodate them and make sure their mobile experience is top notch. After all, the stakes are high – Google reports that 61% of users who experience trouble accessing a site on mobile are unlikely to return there. To help you optimize your mobile site, analyze what percent of your total traffic is coming from mobile, and also look at how many of those mobile users are sticking around.
8. Customer journey timeline
How long does it take a potential customer on your site to become a true customer? What about to become a returning customer? The length of the sales cycle, including how much time users spend in each stage of the digital funnel, is important data to have when it comes to smarketing strategies. If it takes a long time to bring a customer from discovery to purchase or from purchase to return purchase, consider what steps you could take to speed up that process.
When determining the best sales and marketing KPIs to pay attention to for your business, think of all the various things your marketing team does to generate leads and sales, and then think of how each of those techniques should be benefiting overall revenue. While these eight KPIs are a great place to get you started, there are a lot more metrics you should be analyzing when deducing the success rate of your marketing efforts. So roll up your sleeves and really dig into that data. You don’t want to waste time on things that don’t work, and you definitely want to put more overhead into the things that do.