The Best Marketing Automation KPIs to Track in Your Next Project
The editors at Solutions Review have outlined some of the most crucial marketing automation KPIs to track as you measure your company’s overall success with the technology.
Manually managing your company’s marketing campaigns has become a lofty task. With so many channels to monitor and data to collect, analyze, and harness, keeping up with your competition takes more than the tools your company uses. Working with a marketing automation platform can go a long way toward improving the success and longevity of a company’s marketing efforts. Without the proper KPIs, it will be challenging to identify what that success means for its future.
To help, the editors at Solutions Review have spotlighted some of the most significant marketing automation KPIs to track across your company’s various marketing strategies. These Key Performance Indicators (KPIs) will help a marketing team track their project’s progress, align their resources, adjust efforts as needed, and, ultimately, boost lead generation and company growth.
The Best Marketing Automation KPIs
Cost Per Lead
The cost per lead (CPL), sometimes called cost per prospect, is the price it takes to acquire one new lead (prospect). Since lead generation is a multi-pronged process that uses various marketing tools and strategies, tracking the CPL is essential. It will provide a straightforward illustration of which marketing channels and efforts are paying off. When you know how much a lead costs you, it can inform you how much you should be charging for every lead you sell. Ideally, the goal is to have the lowest possible cost per prospect.
Customer Acquisition Cost
Often abbreviated as CAC, customer acquisition costs refer to the amount needed to convert a lead into a paying customer. This information provides marketers with the data they need to measure return on investment (ROI) and, as a result, set accurate goals for budget allotment. Accurate CAC estimations should also consider outside variables like fees and other expenses.
Customer Lifetime Value
A customer’s lifetime value (LTV) is dictated by the projected value a customer relationship provides a company with. One of the best ways to measure LTV is to subtract the cost of acquiring and serving a customer from the revenue the customer provides you with. It’s an important metric to track as it usually costs less to keep existing customers than to acquire ones, so knowing how much value an existing customer can offer is an effective way to drive growth.
Landing Page Conversions
Marketing automation aims to drive audiences to the best content to convert them into leads. One of the best lead conversion tools is the landing page, so tracking the conversion rate for these pages should be a top priority in any marketing automation strategy. Gauging the conversation rate typically involves comparing how many people are on a landing page and the number of visitors who fill out a form on the page.
Lead volume is one of the most straightforward and valuable marketing automation KPIs to track. Companies need leads to maintain themselves, so tracking how many leads a strategy generates will tell you whether it’s successful or needs further optimization. The more valuable leads you can provide, the more money your company makes.
This is an important metric to track, indicating whether your marketing automation’s lead-capturing efforts align with what your customers are looking for. For example, if your strategy generates plenty of leads but very few convert them into customers, your lead quality is low. It doesn’t ultimately matter how many leads you generate; if they aren’t finding what they need, you need to reevaluate your strategy.
Number of Active and Inactive Contacts
The number of active contacts in your database tells you how many people engage with your company, whereas inactive contacts haven’t interacted with your content for several weeks or months. These statistics are good indicators of the audience you’re attracting and should help you decide whether to trim your database or reactivate specific contacts. Active and inactive contacts are an especially valuable KPI to track in your email marketing automation output, as they tell you whether you’re sending the right kind of emails to the right people.
Social Media Traffic
In today’s digital marketing world, social media can be one of the most significant 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. Similar to how active contacts can signify the effectiveness of an email marketing automation campaign, social media traffic and engagement can inform you how optimized your social media automation efforts are.
Website Traffic to Website Lead Ratio
This KPI helps you measure the quality of your website traffic and website conversion rate. However, you must recognize that you will always receive more website visitors than prospects and leads. Because of that discrepancy, it can be challenging to optimize that ratio or define what success should look like. One of the better ways to start tracking this KPI is to explore landing page copy, website design, and content output.