The editors at Solutions Review have outlined some of the best marketing automation KPIs to keep track of as you measure your company’s overall success.
As the importance of marketing automation continues to grow, more and more solutions are being developed worldwide. No matter the size of your business or the industry you operate in, your company is highly likely to use some marketing automation solution. Marketing automation is a great tool for saving time and automating repetitive tasks.
Even so, organizations haven’t taken the time to understand this type of enterprise technology or haven’t invested the necessary resources to make their marketing automation shine. Furthermore, companies using this tool aren’t exactly sure what they should be tracking or looking to as an indicator of the success of their marketing automation strategies. This list of the best marketing automation KPIs to track in your next project can help you align your resources and focus on boosting lead generation and overall company growth.
Cost per prospect
This is pretty straightforward: the amount that it costs you to acquire each of your new prospects. This can then directly inform you about the cost of a new customer or how much you should be charging per lead that you sell. Ideally, the goal is to have the lowest possible cost per prospect.
Customer acquisition cost
Often shortened to CAC, customer acquisition cost refers to the amount needed to convert a prospect into a customer. This information enables marketers to set accurate goals for customer acquisition and budget allotment. Accurate estimation means taking into consideration outside variables such as fees or other expenses.
Customer lifetime value
Often shortened to LTV, this vital information is the projected value of a customer during their entire relationship with your organization. A basic way to measure LTV is to subtract the cost to acquire and serve the customer from the customer revenue. However, there may be other variables you need to consider that are specific to your business model or industry.
Landing page conversion rates
Landing pages are one of the main strategies that your company can use to generate leads. To gauge your conversion rate, you’ll need to compare how many people visit the landing page and compare it to how many people actually sign up or decide to further engage with your company. This can be challenging to optimize, so make sure you’re experimenting with segmentation, channel alignment, and the potential value of your locked content.
Lead average score
This is a KPI that isn’t necessarily trackable by everyone but is particularly useful for companies that already implement lead scoring strategies. The lead average score is a good way to gauge your generated leads’ overall health and quality. It can give you insight into whether a particular marketing campaign generated higher quality leads or whether other similar factors had an impact.
This is an important metric to track, as it indicates whether your lead capturing efforts are lining up with what your customers are actually looking for. It doesn’t matter how many leads you can provide to your customers; if they aren’t resonating with what they need, you need to reevaluate your strategy.
You may be attracting the right kinds of leads, but it’s important to keep a large and steady flow of incoming information. The more valuable leads you’re able to provide, the more money your company makes, and the more you can satisfy and generate trust in your customers.
Number of active and inactive contacts
The number of active contacts lets you know how many people have actually been recently engaging with your company, whereas inactive contacts haven’t engaged in several weeks or even months. These statistics are good indicators of what kind of audience you’re attracting and should help you decide whether to trim your database or reactivate certain contacts.
Prospect qualification rate
Generating hundreds of leads per second would be an incredible feat, but all of these leads become useless if it turns out their information was gibberish or that they are low-quality leads. Your customers want as many leads as possible, but they want them to be of high quality as well.
Revenue driven by digital marketing leads
The percentage of revenue that your company generates from any of your digital marketing efforts. This helps you assess the true impact of your digital marketing and determine whether you need to reallocate portions of your budget. Additionally, it helps establish the true ROI of your digital marketing.
Social media traffic
In today’s digital marketing world, social media can be one of the biggest factors in the success of your business. Lackluster social media interaction will not affect your business in the best-case scenario but will ultimately harm your business in the worst-case scenario. Focusing on your social media content quality and making sure that it’s driving appropriate traffic should be one of your priorities.
Website traffic to website lead ratio
This KPI helps you measure the quality of your website traffic and website conversion rate. It’s important to recognize that you will always receive more website visitors than will eventually be converted into prospects and leads. Optimizing that ratio can be challenging, and it might be best to explore aspects such as landing page copy or website design.
Looking for more? Download our Marketing Automation Buyer’s Guide for free to compare the top products available on the market with full page vendor profiles, key capabilities, a marketing automation software market overview, our bottom-line analysis, and questions for prospective buyers.
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