Douglas James, a Marketing Expert who has inspired countless entrepreneurs to reach high levels of success. His Marketing helps entrepreneurs start and grow wildly profitable businesses. Douglas James Marketing Academy is a flagship program that takes beginners to advanced within weeks and thus builds prosperous careers. Today, he teaches every and anyone interested in the tips to profitably run businesses with the help of Marketing KPI’s!
Marketing KPIs (Key Performance Indicators) are specific marketing measurement metrics that are used by businesses in order to track and measure marketing performance in specific marketing criteria. According to Douglas James, If your business is primarily online, tracking your marketing KPIs is extremely important in improving your business performance. Let’s take a look at some of the most important marketing KPIs you should be paying attention to.
Sales Growth / Sales Revenue
The starting point in beginning to track your KPIs includes knowing sales revenue. This is the amount of sales revenue that has been generated as a direct result of your marketing and paid advertising efforts. Once you have established your sales revenue for the current period it’s important to compare your sales revenue to your previous period to see relevant changes that occurred. This brings us to the next staple of marketing KPI’s, sales growth. Tracking your sales growth is not only important for your business, but it’s also extremely valuable. It gives you a clear idea of your business performance periodically and it allows you to make adjustments in order to improve your operations. It’s also important to get in the habit of anticipating sales growth and declines during certain periods or seasons says, Douglas James.
Cost per lead is simply the amount of marketing and advertising dollars it takes your business to generate a qualified lead. If you are advertising online it’s very simple to track and manage your lead costs through a CRM provider. The two most popular CRM providers that can help you track your cost per lead and other important marketing KPI’s are Salesforce and Hubspot.
By tracking your cost per lead you can gain a better idea of the real costs it takes to get leads and acquire real customers.
Costs Associated with Lead Generation
It’s important to know what costs are actually associated with the lead generation when trying to figure out your true cost. Some of the relevant costs include:
• Human capital ( this includes the cost of your employees)
• Software and technology ( CRM providers or platforms you use for your business)
• Office space and relevant overhead
• Advertising spend
• Marketing material costs
These are some of the baseline costs associated with calculating your true cost per lead. This is an important marketing KPI that you need to know if you want to learn how to scale your business pipeline.
Lifetime Value of a Customer
The lifetime value of a customer can be a difficult KPI to accurately measure without a specific system in place, but it is very relevant to know when it comes to creating a long term business.
The cost of acquiring a single paying customer is meant to help you measure the cost of converting a potential lead into a customer. This marketing KPI is useful in helping your business determine profitability because it compares the number of marketing dollars spent on acquiring leads vs the amount that was converted into paying customers.
Coca is also known as Customer Acquisition Costs (CAC).
Below is how the cost of customer acquisition is calculated.
Reducing the COCA value will help your business acquire customers more efficiently and at a lower rate.
Sales Team Response Time
Also commonly referred to as “lead response time”, the sales team response time is the average time it takes a sales rep to follow-up with a lead after it enters the sales funnel. A qualified lead is identified as:
• Submitting a signup form
• Filling out a quote
• Downloading an E-book
• Requesting a callback
Calculating and measuring the lead response time can be quite tricky for some organizations and maybe not even that useful to them. It can have negative and positive impacts on your business.
Calculating Lead Response Time:
It’s important to note that this may not be a valuable metric for your organization, but it can add value if your business model relies heavily on leads and follow up in order to generate sales.
Hope you could learn much from all these Douglas James’s tips!