Apr 3, 2023
Rick Walz, President & CEO
Small business marketing teams are looking for more efficient ways to keep track of their marketing efforts, and key performance indicators (KPIs) are an essential part of this process. Marketing KPIs help keep track of which marketing channels are driving the most sales and attracting the most customers, as well as which channels are not working well.
While there are many different marketing KPIs, the following five are essential for your small business to ensure you’re getting the most out of your efforts:
- Cost Per Acquisition (CPA): Your CPA measures how much it costs on average for someone to take an action that leads to a conversion. This is important to track, because it shows you if you’re spending too much money on lead generation or advertising, or if you’re not spending enough. Then, you can make any necessary improvements to your marketing strategy to get your costs down.
- Customer Lifetime Value (CLV): Your CLV measures the average revenue generated by a customer in total across all of the purchases they make from your business. This KPI helps you identify whether your customers are spending more or less than desired and lets you calculate your customers’ value to your business.
- Traffic-to-lead ratio: Your traffic-to-lead ratio is the number of unique visitors it takes to generate a lead. This ratio is important because it shows you how well your website is converting traffic, which will help you determine your overall marketing ROI.
- Lead-to-customer ratio: The lead-to-customer ratio is the number of leads it takes to generate a sale or a paying customer. This ratio is important to calculate, because if you have a low lead-to-customer ratio, you may need to improve your lead generation efforts.
- Audience growth rate: The average audience growth rate is usually a social media KPI that helps you determine how many new people are joining your community.