What Are The Most Common Key Performance Indicators (KPIs) in Digital Marketing?
As sailors navigated the globe centuries ago, they would frequently pull out their sextant to determine the location, direction, and speed of their ship with respect to the sun, the stars, or the moon. They’d frequently take these measurements to ensure that their ship was always heading to its destination.
As marketers, we use Key Performance Indicators (KPIs) in much the same way. Our clients or our companies have goals with respect to acquisition, customer value, and retention… and we need to constantly track our marketing and sales progress in achieving those goals.
Utilizing your sales reports, CRM, analytics, and marketing budgets, you should be able to measure these KPIs on a campaign basis, monthly basis, providing both month-to-date, month-over-month, and month-over-year trends:
- Inbound Sales Revenue – Total annual sales traceable to marketing efforts that drive leads inbound to your digital channels.
- Cost Per Lead (CPL) – Total money spent on lead generation divided by the number of leads that spending helped to generate.
- Cost Per Acquisition (CPA) – Total money spent on lead generation divided by the number of new customers acquired.
- Traffic-To-Lead Ratio – Total website traffic compared against the number of leads generated from that traffic, found in analytics.
- Funnel Metrics – marketing qualified leads (MQLs), sales qualified leads (SQLs), total opportunities, and closed deals.
- Market Share – Your estimated revenue in comparison to your competitors and/or industry.