KPIs are no joke!
Key performance indicators play a significant role in the creation of your strategy and marketing budget. They ensure your marketing campaigns are reaching new heights by helping you understand its effectiveness through metrics and measurement. And when they aren’t, KPIs help you understand where to focus your attention. But with so much data to digest, it can be tough to figure out where it’s taking your strategy and how it’s telling you to spend your budget.
So, how can you use KPIs effectively to create your marketing budget and fine tune your strategy?
When there is this much data?
Where should you start?
Align Marketing With Sales
It’s time to embrace the sales process! I know, probably not what you wanted to hear as a marketer but both, sales and marketing need to put their heads together to create the best sales and marketing results possible.
The truth is you can’t do one without the other.
I mean look at how quickly you blame one another you when goals are missed? You both know how much you rely on each other.
You can’t do one without the other especially if your end goal is to generate more revenue- which it should be, your boss would want it to be. So you have to start looking at sales and marketing like the best combo ever and not sworn frenemies. Once you come to terms with sales being your new BFF, it’s time to break down the consumer buying process and use it to figure out what data is most relevant for understanding the KPIs your marketing team is using.
When it comes to the consumer buying process, you have to talk about the funnel. And when it comes to the sales funnel you can actually use it to break down marketing KPIs by stages,
- Awareness: something seems wrong
- Consideration: what are my options to fix it
- Decision: X will fix my problem
Use the sales funnel to examine your KPIs, to figure out what data is needed and to help marketing understand how it relates to each stage of the sales process.
With each step of the funnel, we are going to figure out what data sources you should be looking at, what it can help you find out and how you can use it.
This is the top of your funnel. Which means you have a lot of data to look through! There is so much your marketing team is doing to bring awareness to your product and or service so which sources are most impactful?
- Where are the hot spots on your site?
- Where are people spending their time? And for how long?
- Are these the pages you are driving them to through ads?
- And what do they do if they are on one of those pages?
It’s important to know what parts of your website people are drawn to so you can do more of that! You don’t just want to celebrate the fact that 40,000 people are coming to your site, but you aren’t making any sales from them. Make sure you are attracting the right visitor to your website, one that has a problem you can fix!
- How many people are coming to your blog?
- What posts have the most visitors?
- How long are people spending on your blog post?
Content is a great way to build trust with your audience, but you have to make sure it is information your audience wants and needs. While it’s great to have a blog with lots of content to look at it won’t mean much unless your audience is reading it and finds it relatable to their needs.
- How many people see your posts?
- How many people engage?
- What social platforms are meeting your current goals?
Social media is a great tool to use for promoting content which helps you build relationships with your audience. It helps with brand recognition and can be a place people come with questions you can answer. It opens the door to communication and relationship building between the consumer and brand.
People enter this part of the funnel when they want to learn more about you! You did something right with your awareness marketing efforts- maybe it was a blog post or something on your website that made them keep looking into your brand to figure out if your service and or product is the right fit. Now in the consideration stage, you are taking metrics that show how what and who you are converting.
- How many people converted?
This is probably the most important metric to track! It measures the effectiveness of your call to action, and if people make it this far they are letting you know that you did a lot of things right with your marketing efforts and have the possibility to win them over
Visits & Conversion By Source
- How are people getting to your website or landing page?
- Where are people converting?
- Who, what, when are people converting?
While yes, it’s great that people have found your website and are reading your blog but in the consideration stage you want them to commit a little bit more to your brand and when someone does you want to know how they got there. Did they have to read 5 blog posts and on the fifth one they signed up for your weekly newsletter? Did they find your blog post by clicking on a Facebook Ad or just a Tweet- did their visit cost you money or was it “free”. It’s important to look into all of this so you can do more of that so more of the right people find you!
This is at the bottom of the funnel, your potential customer turns into a client. And you may think once your MQL turns into a customer the sales team takes over from here. No! You worked hard to get them this far so marketing doesn’t stop here. Now you have to ensure your current customer stays a customer as it’s much cheaper to keep your customers than to go out and look for new ones.
- Are current or past customer referring your company?
- How many referrals do you receive during any given amount of time?
Referrals are basically like “free” customers. You didn’t have to drag them all the way through the sales funnel. They jumped a few steps and made an easy decision because a friend/co-worker/ family member told them they needed you! There are few marketings tactics that work as well as a good recommendation! So give your current customer incentive to refer you to their friends and family.
- Are customers reviewing you online?
- Are the reviews good?
- Are you responding to problems when addressed here?
Don’t be afraid to ask your customer to review you, especially if they won’t stop talking about how much they love you. Maybe you see them tweet something at you? Or they send you a message on Facebook? Or tag you in an Instagram post? Now is marketing time to shine. Make sure you comment back and thank them and most importantly make it a priority to address any issues mentioned. You don’t want to ignore complaints just because it’s not “marketings job” (but yes it is, this is your brand image after all).
Wrap It Up
Your KPIs can make or break your marketing efforts. If you understand your KPIs, the data behind them, where to get that data, and what questions to ask about that data then this could change everything about your marketing efforts.
KPIs don’t need to be feared! They can be a tool used to put all your marketing efforts in the right place. So the next time you become overwhelmed by all that data needed, break it down and look at through the lens of the sales funnel.
The truth is, when you understand your KPIs you will become a better marketer!