Top 13 Marketing KPI to Track Savvy Marketers in 2020

By: Bilal Kamal   Topic: Marketing KPI   More Post About Content Marketing, SEO, Blogging, Wordpress, etc


Marketers should probably report on KPI metrics or use KPI dashboards regularly to set goals and track the performance of marketing campaigns and strategies.

In most cases, if you don't use marketing KPIs, there's no way to determine if your campaign is worth your time and money or if it's worth running tests to optimize your campaign.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


According to management expert Peter Drucker, "Measured is managed."

We are sharing our Top 13 Marketing KPIs to monitor key metrics across our marketing activities and gain key insights to make the right decisions to strengthen our campaigns for success.

These were the northernmost stars of marketing strategy and success at PixelMe.We have categorized the best marketing KPIs into two groups.


  • 5 marketing KPIs for revenue measurement
  • 5 Marketing KPIs Measuring Website Performance


What is marketing KPI?

KPIs represent key performance indicators. The marketing KPI is defined as follows:

Marketing KPIs are measurable indicators that can track the performance of your marketing campaigns, monitor your progress towards key marketing goals, and help you understand how effective your business is in achieving your goals.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


As you can imagine, marketing KPIs are the basis of effort. Without them, you will start the campaign blindly and you won't know if they are attracting customers or income.

With them, you will have the perfect equipment to measure and report which efforts are the most successful.

5 marketing KPIs for measuring profit.

Here are the top five KPIs in Marketing to measure revenue in the KPI Dashboard:

Cost Per Lead (CPL)

Customer Lifetime Value (CLV)

The average revenue per account per acquisition channel (ARPA)

Customer retention

Ad Return on Investment (ROAS)

1. Cost per lead (CPL)

Definition: A simple term is someone who expresses interest in a company's products or services. Therefore, cost per lead (CPL) is the amount of money spent on acquiring new prospects.

In Bilalacademy, for example, these actions are considered new leads.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


Individual who signed up for a free trial

the individual who booked a attribution demo

Individual subscribing to newsletter

How to calculate PL CPL:

Cost Per Lead = Total Cost / Total Leads Acquired

To calculate CPL most accurately, including all costs associated with generating new leads such as all marketing and sales costs, salaries and overhead or outsourcing costs.

We also recommend calculating and monitoring CPL per campaign and channel and tracking the number of leads that convert to customers. You can then understand the customer acquisition cost (CAC) and compare it with the customer lifetime value to determine your ROI (see below).

Why Useful: Knowing the CPL is important to understand the cost of ultimately generating customers. This enables you to build a profitable business by comparing CPL and CAC and ensuring a lower CAC than customer lifetime value.

Tools to use: In addition to tracking your CPL, monitoring the quality of your leads will allow you to invest in channels and tactics that will help your customers grow their leads better. The following three types of tools are best suited for CPL tracking and lead development.

CRM Platform (Lead Management, Tracking, and Scoring): Salesforce & HubSpot
Customer Contribution Platform (CPL Automatic Calculation): Smart Contribution
Marketing Automation Tool (Creating Leading Program): Marketo

2. Customer lifetime value

Definition: The customer lifetime value (CLV) measures the amount each customer earns over its lifetime with the company.

How to calculate C CLV: There are several basic formulas that determine customer lifetime value. In the simplest calculation, CLV is total lifetime customer profit minus lifetime customer cost.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


For B2B SaaS Company:

Customer lifetime value = ARPA / customer bounce rate

Note: Make sure you use the same time period for your ARPA and customer bounce rate.

or

Customer lifetime value = ARPA x average customer retention time in months

For example, use the following data point for one year:

Monthly ARPA is $ 100
The monthly customer churn rate is 3%.
The customer has been with the company for an average of 18 months.
Using the second formula:

Customer lifetime value = $ 100 x 18

So CLV is ~ $ 1800 per customer.

For an e-commerce company:

Customer lifetime value = average order value x average repeat sales per customer per year x average customer retention time in months

Why Useful: Understanding CLV across different channels and customer segments is critical to growing your business. In general, the CLV: CAC ratio for SaaS high-growth business is 3: 1. Using CLV you can understand:


  • The amount to spend on paid advertising channels.
  • Who are your most valuable customers and who do you target in your acquisition campaign?

  • The types of promotions and discounts that can be offered to still remain profitable.

  • General customer behavior to test customer retention strategies to prevent churn and prolong life.

Once you have both Customer Acquisition Costs (CAC) and CLV, you can calculate your ROI, which is the best holy grail in marketing.

Tools to use:

Customer Attribution Tool: Smart Attribution shows CAC, LTV, and ROI across all channels, so you can clearly see where to do your marketing activities.

Business analytics software: I like ChartMogul, which specializes in SaaS analysis, and I use it to regularly monitor MRR, ARPA, and Churn.


3. ARPA per acquisition channel.

Definition: The Average Revenue Per Account (ARPA), also known as the Average Revenue Per User (ARPU), tells you the average amount of income every customer brings.

How to calculate AR ARPA:

All business:

ARPA = Total Revenue / Total Accounts for All Accounts

For SaaS Business:

ARPA = MRR / Total Customers per Month

ARPA is typically calculated on a monthly or annual basis. We also recommend calculating the ARPA per acquisition channel to track the channel that gets the highest ARPA.

Why it's useful: ARPA can help you segment your users by different demographics or industries to see revenue growth and churn trends. As we saw earlier, ARPA is also essential for CLV calculations.

For example, if you're a B2B company targeting SaaS and e-commerce customers, you can segment ARPA by industry (e.g., is there a higher ARPA for SaaS or e-commerce prospects?) And monitor trends (e.g., ARPA results Is higher) on low exit?). We also use PixelMe's ARPA to plan progress on monthly, quarterly and annual MRR targets.

Tools to use:

Business Analysis Software: Use ChartMogul to monitor ARPA, MRR and Bounce Rate.

4. Customer Retention.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


Definition: Customer retention in basic form is the number of customers who use a product for two months (or for another specified period) by a customer using the product for one month.

Customer retention is the percentage of customers who have been retained for a period of time, for example, one month. The opposite of customer retention is churn, and the bounce rate represents the percentage of customers who remain for a period of time (usually monthly or yearly).

How to calculate Re customer retention rate:

Customer retention rate = ((CE-CN) / CS)) * 100

CE = number of customers at the end of the period
CN = number of new customers for the time period
CS = Number of customers at the start of the period
Useful reasons: Preservation can create or break a B2B or B2C company. It is an important indicator of the valuable value people find in your product and how long you will stick with it.

Even with strong CVs and ROI in marketing efforts, if you don't take retention rates into account, your growth can stagnate and your profitability won't be at all. No company wants to lose customers, so it's important to monitor customer retention and churn, track customer segment patterns, and understand when and why people are leaving.

Tools to use:

Business analytics software: For SaaS business, ChartMogul is a great analytics platform for monitoring customer retention and bounce rates.

5. Advertising campaign ROAS.

Definition: The advertising campaign Return On Ad Spend (ROAS) is the total revenue per dollar spent on advertising.

For example, in a marketing benchmark guide, the average ROAS for Google search ads is 2x. This usually generates $ 2 for every dollar you spend on Google search ads.

How to calculate AS ROAS:

ROAS = Total Revenue Generation / Total Ad Spend

As you can see, ROAS can be calculated very simply by campaign and channel over a period of time.

Why Useful: When it comes to online advertising, ROAS is one of the key metrics you need to monitor to measure the effectiveness of a particular campaign or advertising platform.

Combining ROAS with CLV and CPL gives you a more complete picture of the amount of budget you'll allocate to your advertising platform, your investment in campaigns and messaging, and your advertising platform that will resonate with your target audience.

Tools to use:

Customer Attribution Tool: Smart Attribution displays CAC, LTV, and ROAS on advertising platforms (Facebook and Google). And with multi-touch attributes, you can see how your advertising platform contributes to your customer journey.

5 marketing KPIs for measuring website performance
5 marketing KPIs for measuring website performance in KPI 
Dashboard:

Conversion rate landing page
Bounce rate
Time on page
Sessions
Pages per session
To measure these five KPIs, we recommend using the powerful and free Google Analytics.website analytics tool.

1. Landing page conversion rate.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


Definition: The conversion rate for your landing page is the percentage of people who visited your landing page and converted it.

Landing pages are web pages designed to convert users. For example, the Smart Attribution landing page is tailored for B2B companies and is designed to allow people to convert by signing up for a free 7-day trial.

Another example of a B2B or B2C landing page conversion:

Application for consultation
Purchase
Sign up for our newsletter
Service subscription

How to calculate Land landing page conversion rate:

Landing page conversion rate = (total landing page visitors / total conversions) * 100

Why it's useful: Landing pages exist to grow your potential customers and customers, so the most important metric to track is your conversion rate.

It's best to build your own internal conversion benchmark and run A / B content and design tests to see which strategy leads to the highest conversions. Some examples of A / B tests you can run:

CTA button: For example, button color (e.g. red and green), copy (e.g. free sign-up and free 7-day free trial sign-up), and action (e.g. sign up and schedule demo)
Try another unique value proposition
Other headline testing
Create different content (e.g. test images and videos)
Add social evidence (e.g. customer ratings, success story videos, customer reviews)

2. Bounce Rate.



Top 13 Marketing KPI to Track Savvy Marketers in 2020


Definition: Bounce rate is the percentage of people who visit a single web page on your site and then exit immediately without browsing the content.

Google Analytics defines this as

"Bounce rate is the ratio of a single page session divided by all sessions, or the percentage of all sessions in a site where the user only viewed a single page and triggered only a single request to the analytics server.

Since there is no subsequent hit that can calculate the session length in Analytics, the session time for this single page session is 0 seconds. "

How to calculate bounce rate in Google Google Analytics:

The bounce rate is calculated in Google Analytics based on sessions that only send a single request to the server and no subsequent requests in the same session.

In other words, a visitor visited your web page (sent a single server request) but left immediately (did not send additional server requests in the same session).

Why it's useful: Bounce rate is a key indicator of how relevant your content is to website visitors in general. If the bounce rate is high, it can mean a variety of factors, depending on the bounce rate of the various web pages and where the traffic is coming from. For example:

Optimization needed for potential customers targeted by the campaign.
You need to update the web page content to make it clearer and easier to navigate.
The web page must be optimized for mobile.

3. Time page

Definition: The time spent on a page (sometimes called the average session time in Google Analytics) is the average duration that visitors are actively viewing the page on your website.

How Google Google Analytics counts time on a page: 

Google Analytics counts multiple page views, events and e-commerce transactions as sessions.

Why it's useful: The amount of time people spend on specific web pages on your site (e.g. homepages, blog articles, landing pages) usually tells you how relevant, educational, or worthwhile it is to people who read your content.

For example, Google's top blog articles, which drive the most leads, have a higher page-on-time rate than articles that people simply break away but can't take action.

For landing pages, it's a good idea to monitor trends in the percentage of page visit times and run a variety of A / B tests to optimize your content to ensure long page views and conversions.


4. Session Count.

Definition: In Google Analytics, a session is a time when a visitor joined your site. The session terminates based on two factors.

Time-based:

After 30 minutes of inactivity
In the middle of the night
Change campaign:
If someone came from one campaign, leave the site and then return to the site from another campaign. Examples of campaigns include Google Ads, referring sites, search engines, or other URLs tagged with UTM.
Therefore, the session count is the total number of sessions in the date range.

Why Useful: If your visitors have multiple sessions, this is a strong indicator that they are of high quality and sufficiently interested in returning your site to your products and services.

Monitoring the number of sessions by marketing channel can help you understand the channels that lead to more sessions and conversions. Or if you have a specific channel with a high number of sessions but few conversions, you can provide in-depth insight into where your strategy should be optimized.

5. Pages per Session.

Definition: In Google Analytics, the number of pages per session is defined as the average number of pages viewed during the session. Multiple iteration views of a single page are also counted.

How Google Google Analytics counts pages per session:

Pages per Session = Total Page Views / Total Sessions

Why it's useful: Just like the number of sessions, pages per session is a great indicator of the rate of engagement for your site.

Track pages per session on your site weekly and monthly, so you can see people tending to increase or decrease site engagement over time, especially if you're starting a new campaign or content.

Start marketing KPI tracking.

Now that you have an idea of ​​the best marketing KPIs to track and how to measure KPIs in marketing, now you can start tracking and growing!

Here's a summary of the tools that make it easy to mark the metrics you need to monitor to automate tracking and improve marketing success.

Customer Attribution Platform: Smart Attribution is the first Customer Attribution solution to display multiple KPIs that can be used to measure ROI, go to customer conversions, and better allocate locations to place budgets.

Business Analysis: For SaaS Companies ChartMogul provides a great KPI Dashboard to track your business status.

Website Analytics: Google Analytics is the leading web analytics provider and a favorite tool for customers (and their team at PixelMe!).
Want to automatically calculate CPL, CLV, ROAS, and ROI on your channel? Sign up for the free PixelMe trial 🎉 or book a demo with. If you have any questions, please send a message from the blue chat icon in the lower right corner. 

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