Many companies hesitate to increase their marketing budget because metrics need to justify every expense. In today’s environment, you can be overwhelmed with data and numbers. So, what metrics are the right metrics?
Below are four Key Performance Indicators (KPIs) you should consider measuring and tracking. Using these metrics, you can listen to the marketplace and adjust your campaigns according to customer responses.
Customer Acquisition Costs: Ideally, you want to get to a place where most new customers come to you rather than you reaching out to them. But if you’re a new company, you will probably have to spend considerable money engaging customers. You’ll notice when your marketing campaigns take off when customer acquisition costs start to lower. If you are still paying a substantial amount per customer after a campaign has been in effect for some time, it may be wise to reconsider your strategies.
Increase ROI: You don’t want just to measure the ROI but compare it over time. The cost to acquire each customer should steadily decrease. Even if you feel good about your ROI, it should constantly improve—and if it’s not, you might need to reconsider tactics. Each quarter, you should isolate each marketing expense and review the data.
Engagement: You can find various online and traditional media statistics, but engagement is the holy grail. People who share, comment, backlink, and review your content are actively involved in your brand and are some of your greatest assets for brand awareness. Measuring engagement is complementary qualitative data to other marketing metrics.
Organic Traffic: The best marketing strategies are those you don’t have to maintain with dollars or time. If someone comes searching for you rather than reaching out, you’ve done something exceptional. Maintaining this organic traffic, whether it’s to your website or storefront, is crucial to success.