To run any marketing campaign effectively, you need to know the key performance indicators that you will track. KPIs are numerical metrics used to measure progress toward a specific business goal.
You need to select several such metrics. You will use them to determine if the marketing campaign was successful or not. Without the right KPIs, you will only have raw data without any context. You don’t just need to get information, you need to make it work for the brand and bring new insights for product development.
Here are the most significant KPIs that are recommended to track and monitor when running campaigns, be they related to gambling at btccasinoscanada.com/casinos/20bet/ or providing business tech solutions. But first, let’s understand why these metrics should be so important to you in the first place.
Why a Marketer Should Care About KPIs
Marketing KPIs are important because they help determine:
- What your goals and objectives are.
- How you will achieve them.
- What signs you’ll know if your efforts are getting results.
- What other data you need to plan future campaigns.
Without specific measurable KPIs, you’ll just have a bunch of data with no understanding of why or how it’s useful to the business.
It’s impractical to maintain marketing strategies that aren’t generating revenue. KPIs can be used to adjust plans and current activities. The team will be able to analyze the data collected and make the most effective decisions based on it.
ROMI is a return on investment ROI, only for marketing purposes. It shows your return on investment and ROI. If you have a positive ROMI, the campaign is making more money than invested, and that’s good for business.
The ratio informs where the marketing budget should be directed to achieve the best results. You can use it to track which strategies have been most profitable in the past.
The formula for calculating the return on marketing investment ratio:
ROMI = (Marketing Revenue – Marketing Costs) / Marketing Costs x 100
Use this calculation only to track the direct impact of a marketing campaign. Exclude organic growth figures to avoid distortion.
CAC looks at all costs associated with attracting a new customer. This includes marketing costs, salaries, commissions, software used, and other investments associated with converting a lead into a customer.
It helps you figure out how much it costs your business to acquire new customers through all your marketing campaigns.
The formula for calculating CAC:
CAC = (Total marketing spend + Total sales spend) / Number of new customers acquired.
When calculating, it’s important to choose numbers for a specific time period. For example, a month, a quarter, or a year.
The idea of CAC will help you allocate your marketing budget more effectively to specific areas in future campaigns.
Also read: CVM Marketing: Why and How to Manage Customer Value
Tracking leads is one of the primary ways to measure sales and marketing effectiveness, but it’s also good to understand exactly what percentage then converts to actual customers. This will show which efforts and activities are the most successful.
LCR will help you see how the sales funnel works and which marketing campaigns have the highest ROI.
The formula for calculating the lead conversion rate is:
LCR = (Number of leads converted / Number of leads created) x 100
Just like when calculating CAC, you need to take numbers for a specific period of time.
Track the average conversion rate for each of your marketing channels to determine which one brings in the most targeted and ready-to-buy customers. This will also help you decide which efforts to prioritize and which to revisit to improve conversion rates in the future.