The role of KPIs in modern marketing
It is impossible to evaluate any business project without mathematics. Numerical and percentage ratios allow you to learn about the efficiency of the company and its chances of future success, to understand how you can reduce costs without harming production efficiency.
19 KPI metrics
The best marketers identify 19 metrics (numerical indicators) that can calculate the effectiveness of marketing. Their list includes:
- Conversion rate;
- Clickability;
- Average cost per click;
- Cost of action;
- Lead Price;
- The price of attracting a client;
- Percentage of abandoned baskets;
- Profitability of advertising costs;
- Return on investment indicator;
- Average revenue per user;
- Payback time of the customer attraction price;
- Average monthly income;
- Customer loss ratio;
- Income loss ratio;
- Market share;
- Share of needs;
- Customer retention rate;
- Lifetime Customer Value;
- The number of calls.
One of the experts related to the effectiveness of KPI metrics was the managing partner of the exhibition marketing agency EXPONIC — Ivan Nikolsky. Here is his opinion on this:
«Oddly enough, business leaders sometimes set completely different tasks for their marketers, mixing responsibilities with PR and sales. Ideally, all other things being equal, the marketer is responsible for increasing sales through advertising, including on the Internet (we do not include PR here, we do not undertake to evaluate image and reputation), and three main indicators can be distinguished:
- Number of new clients attracted;
- Number of repeat orders;
- Reviews.
Depending on the industry and type of business (B2B, B2C), there may be more of these metrics, since there are more than 20 tools in the same Internet marketing that can be digitized. But in any case, they are all aimed at increasing sales, which can be estimated in large strokes by the three above indicators. The most important thing is that the marketer is motivated to fulfill the set KPIs. Nothing better than a fixed payment plus a percentage of the achievement of indicators has not yet been invented.»
