KPIs help analyze the actions of a company, departments, and employees. They are especially important in marketing — the numbers show how well the company is moving.
In the article, experts from “Precisely.” explaine what KPI is for marketers, what key indicators should be implemented in the work of the marketing department, and how to interpret the data obtaine.
What is KPI
KPI (Key Performance Indicators) are key performance indicators. They reflect how successfully you, your department or company are moving towards the goal.
Each business, department, and employee how to build phone number list has its own tasks, the effectiveness of which must be monitored. Before starting a new block of work, metrics are calculate and set that the employee or department should strive for. For example, the HR department must bring in 10 employees per month, the marketing department – 100 leads, and the production department – create 80 units of production.
At the end of the work, the target indicators are compared with the result. It is easiest to do this in percentages – the higher the percentage, the more effective the work of the department or employee. If a marketer brings not 100, but 120 leads, the effectiveness of his work will be 120%.
Each business, department, employee has its own metrics by which their work can be analyze. In the marketing sphere, there are especially many such indicators, because this is a space of continuous analysis: the market, channels, hypotheses, etc.
Why Implement KPIs for Marketers
Every hypothesis, test, and action in marketing is subject to subsequent analysis. When there are precise numbers and measurable results, it is easier to conduct analysis.
The more measurable indicators are recorded, the easier it is to evaluate and predict the result.
KPI allows a marketer to:
evaluate the effectiveness of marketing campaigns;
adjust actions (if the indicators are low or, on the contrary, higher than they should be);
make predictions.
If the marketer’s salary, bonuses and other bonuses depend on the KPI, he will have a strong motivation to provide you with astronomical indicators every month. The “fixed part + bonus part” scheme is comfortable for both the company 10 tipů, jak si udržet zákazníky na whatsapp and the specialists: the company is confident that the marketer is really trying to increase the flow of leads, and the specialist is confident that in any case he will not be left without money for the next month.
The figure may be significant: according to Powerbi , the average salary of a middle marketer in Russia is 150,000 rubles, and a senior marketer is 220,000 rubles.
Key KPIs in Marketing
The KPIs that will be use in the work are influence by two factors: goals and context. The main indicators in Internet marketing, for which the marketer or marketing director is responsible : cost per lead, conversion, loyalty index, average check and return on investment.
CPL (Cost Per Lead) . How much did you pay for a potential client to leave you their phone number or other details? This value is reflecte by such an indicator as CPL. To calculate it, advertising costs are divided by the number of leads.
Conversion (CR) .
Shows how many site visitors have complete the target action. Conversion is affecte by the prototype and design of the site, the work of copywriters, correct layout, etc. A marketer can control all of this. But if a specialist came to work for you a couple of months ago and has nothing to do with website development, it is unreasonable to reproach him for low conversion.
Net Promoter Score (NPS) . How willing are your customers to recommend your product, service or company to their love ones? This metric allows you to study customer loyalty. The marketing formula for the NPS formula is simple: % loyal customers – % disloyal customers.
The data is obtained by analyzing activity in social networks and using a survey. Customers are aske to rate on a ten-point scale whether they would recommend the company to friends or family. A score of 9-10 points will indicate customer loyalty, 0-6 – disloyal customers. The average indicator (6-9 points) is usually not taken into account.
Average check .
This is the arithmetic mean of all orders for a month or other period. It is compare with market indicators and previous figures for the period under study. It is important to consider the niche: for a clothing store or restaurant business, this average check will be most relevant, but in the B2B or B2G segment it is difficult to influence.
In addition, the average check is affecte by the au emai list logic of the product matrix, and this is the task of the marketing director , not just the marketer. We are use to the fact that you must take sauce with French fries. This means that the founders thought out the product matrix correctly. But if a swimsuit store starts selling insulatd socks, this will not only be ineffective, but will also raise questions.
Return on Marketing Investments . A global indicator that shows how much each ruble spent turns into. It is assesse using ROMI and ROAS.