(If you aren’t already.)
Sales revenue and leads are important data points to track. But where are they coming from? There are several other KPIs you should track to identify which campaigns and tactics have the greatest impact. This is gonna be a bit of a terminology review, but give these KPIs some tracking love:
- Customer acquisition cost (CAC): Customer acquisition cost measures how much money it costs to convert a lead into a customer (including costs like manpower and software).
- Customer lifetime value (LTV): Customer lifetime value indicates the total revenue you can expect from a single customer. If your CAC is higher than your LTV, then you should rethink your spending on getting new customers.
- Marketing ROI: The marketing ROI formula is (sales growth – marketing investment)/marketing investment
- Marketing qualified leads (MQL): An MQL is a potential customer who has shown interest and use for your brand and could become a serious prospect if you nurture the relationship.
- Referral traffic: Referral traffic is a marketing KPI that helps you understand where your website visitors come from. It’s essential to track to understand where to put effort into a given channel.
- Conversion rate: This is the percentage of visitors who complete a desired action, like signing up for your newsletter or making a purchase. Understanding where customers convert or if a conversion rate is low helps you optimize your CTAs and content.
- Return on ad spend (ROAS): ROAS measures the revenue generated by advertising against your investment, usually expressed as a ratio and you can use it to determine the success of your ad campaigns.
These were our top 7 favorite KPIs. Check out MediaTool’s full list of 10 KPIs you should be tracking.
