Using Marketing Performance Metrics to Improve your Marketing Activities and Campaigns
The effective marketing manager determines the key metrics — as well known as key performance indicators or simply KPIs — to gauge the performance of the entire marketing work and also the results of the marketing strategies.
However, accomplishing higher marketing performance will be especially essential in maximizing performance. Managers seek to increase the marketing performance of most regions of the organization for example. Selling services and products frequently needs combination of steps where the organization moves customer prospects closer to making purchases and creating relationships. Managers measure the performance of the prospect-nurturing work for example by monitoring the activities used by customers to find out more about the organization and the services or products.
This process is known as prospect nurturing and it exists in any type of business. You can track the number of prospects subscribe to your monthly newsletter, for instance, the number of people who read your blog and also who subscribe for your webinars.
Calculating marketing performance metrics as well involves monitoring where leads arrive from. First you need to improve how many leads your business gets, to achieve the revenue objectives you have set. For instance, you should know, if print ads produced the majority of your leads last month. If you know that are the most essential sources of leads – in that case – you could commit extra marketing resources to your lead generation techniques which are already working good. As well you can evaluate why and how certain techniques are not effective at the same time.
Simply divide the marketing expenditures for last quarter or full last year by how many leads they produced. This is a simple way to calculate your total marketing cost per lead. This is very important marketing KPI to gauge how efficient those expenditures were.
Another example is conversion rate. The conversion rate metric measures the number of prospects who became paying customers during the same time. Growing the conversion rate indicates that the marketing strategies have been effective — you will be adding more new customers with exactly same level of marketing expenditures.
You might use metrics related to the industry where your organization does business. For instance, benchmark against your competitors can show different ways for you to view your marketing. At the same time you can test how using various metrics and marketing KPIs can give you better view of your business performance.
Industry specific KPIs and metrics are very useful. For example, metrics used by manufacturing business focus on different aspects compared to retail businesses or consulting firms. Having said that, regardless of your market sector the above mentioned metrics are universal and you should definitely track them in your business.
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