Marketing KPIs: understand the importance and main metrics

The text explains what marketing KPIs are and their importance. Throughout the paragraphs, it is possible to observe what the main market metrics are and the difference between KPI and metric.

Marketing KPIs: understand the importance and main metrics

Do you know how to measure the success of your business? 

Much of this achievement depends on a good choice of Marketing KPIs. It is through this that you can monitor your business strategies and measure whether your company is on the right track or whether new strategies need to be developed to boost results. 

So, if you are interested and want to understand more about KPIs, continue reading and discover the importance of this indicator. Check it out!

What are marketing KPIs?

KPIs, in English Key Performance Indicators, are the so-called Key Performance Indicators analyzed by a company, that is, the fundamental quantitative values ​​that measure the internal processes of a business.

Therefore, indicators are an important part of any organization's management strategies, as they enable monitoring and better management of the level of performance and success of each plan. 

Furthermore, with KPIs, each company can understand how each of its numbers is doing and set possible and achievable goals. It is important to emphasize that metrics must be separated by levels: the most general and strategic ones for the business as a whole, and the most specific ones, which are focused on a specific area. 

Below are some examples of marketing KPIs to simplify how this separation of levels is done.

General metrics

  • Churn rate;
  • MRR (Recurring Monthly Revenue);
  • Cash flow.

Specific metrics

  • Cost per lead;
  • Conversion rates.

How important are digital marketing KPIs?

As previously mentioned, the use of marketing KPIs is essential for the management and performance of this strategic area of ​​the company. After all, these tools do not allow for guesswork, as all decision-making is based on concrete data.

By implementing these metrics, the company has an easier time identifying what needs to be improved and making the necessary adjustments as soon as possible for the success of its business. 

Read more:

Digital Marketing Report

Types of KPIs that can be used by digital marketing companies

Before citing some practical examples of marketing indicators, it is important to say that with so many analysis possibilities, each organization needs to keep in mind which types of KPIs are essential for its success. 

Some of the main categories are:

  • Productivity indicators: they are tools applied in company management with the objective of evaluating the performance and efficiency of business processes, that is, they act to measure the amount of resources that an organization uses to generate a product or service; 
  • Quality indicators: they go hand in hand with productivity indicators, as they help in the analysis of any unforeseen events or errors that occur throughout a process; 
  • Capacity indicators: are aimed at demonstrating how competitive the company is. It is through a process of the relationship between the outputs produced per unit of time; 
  • Strategic indicators: are characterized by being indicators that provide information on how the business is doing in relation to previously defined goals. In addition, they provide a comparison between the current and expected scenario. 

Main Marketing KPIs 

Why think about generating leads, customers and sales on Linkedin?  To begin answering this question, let's first think about the potential of this social network: Linkedin Brazil already has 50 million users.  The platform, which makes great use of professional recruitment, brand promotion and business networking, has been increasingly successful in networking and digital sales.  Talking about digital sales has been a constant during the health crisis, which has opened up a new perspective for sales teams.  Where to look for prospects in times of closed doors?  Even though the scenario is beginning to stabilize, with several activities returning to in-person activities, it is more than certain that the digital universe is here to stay and should be seen by sales teams as a great source of opportunities.  More than ever, after the pandemic, is it necessary to take a new look at sales?  What is Linkedin?  Operating within a strictly professional sphere, the social network Linkedin has more than 50 million users in Brazil.  There are already more than 575 million worldwide, in more than 200 countries and other territories.  Linkedin has a decisive audience, a focus on B2B businesses and a powerful segmentation that is very promising for sales in different segments, because it is made up of professionals who are business owners, executives of large companies or managers from different areas.  According to the Linkedin Audience 360 ​​study, 4 out of 5 professionals on the platform are decision-makers in their businesses.  Therefore, the potential of Linkedin for companies is immense.  Furthermore, the new moment triggered by the pandemic revealed that the relationship became much stronger within the sales scenario.  This process was already moving towards sellers building another type of connection with buyers, using remote mechanisms.  According to data from the study “2020 Sales Scenario in Brazil”, by Linkedin itself, salespeople were already learning new skills within Linkedin Learning 3,5 times more than other professionals to acquire new skills for use in the digital universe.  The trend already existed, however, the global health crisis accelerated this process of digital transformation in all sectors.  As a result, friendly approaches within Linkedin itself and the acceptance of new connections within the platform have increased.  Read more: Social networks Sales funnel How to use Linkedin: make professional connections and updates Linkedin allows a professional, in addition to registering their resume, with their experiences, skills and education, to also make connections with several other people who are within their area of ​​interest or even in other fields.  The news feed publishes a wide range of discussions about economic policy, the job market, innovation, training and much more information about the professional world.  In other words, do you want to talk about the fashion market?  On Linkedin it is possible.  Want to talk about tractor production?  It is also possible on Linkedin.  This means that the range of options is immense and the variations of themes in the segmented groups are countless.  Any niche market is out there waiting for sales on Linkedin.  Thinking about ignoring the many potentialities of the network in prospecting potential customers is a strategic and economic loss.  So, finding ways to sell on social media is no big mystery.  Especially because today, in the connected world, more than ever, it is possible to find and offer solutions for the entire world.  For this reason, 70% of the decision to purchase a service or product is made during a search for prior information on the internet about prices, features and brands.  Read more about: Inbound Marketing How to join Linkedin: start with an effective profile The Linkedin profile needs to include elements that are reliable and more personalized.  In addition to filling in work experience, education and skill set, there are other little secrets that could be the key to your results.  Increase your brand visibility To increase your brand visibility, customize your title with some specialized keywords and functions.  Enhance your summary of what you do, what you’re passionate about, and provide contact details for potential clients, along with a catchy phrase.  You can also add three links to your Twitter profile, such as your company website, personal website, or blog.  Add resources like relevant documents, photos, links, and video presentations to your profile to boost your results.  Ask for recommendations for each position listed on your profile, such as testimonials.  This initiative will be very important to boost your digital sales.  Incorporate some keywords to increase the chance of your profile appearing in network search results.  Think about who is looking for the product or service you offer.  What word would this person use?  Add these words to your profile naturally.  Make connections and prospect After optimizing your profile, the next step is to focus on growing your network, that is, seeding contacts.  The more quality connections, the greater the possibility of thriving.  Import contact data To do this, start importing the email contacts of people you already know, whether they are from your current relationships or from previous times.  With this, it is now possible to evaluate connections and request a presentation, when necessary.  But be careful – don’t bulk import contacts, as some of them may not be of substantial importance for making connections with your brand on Linkedin.  But this measure of importing data from people we already know is very important.  According to data from Linkedin itself, buyers on the network are five times more likely to participate if the promotion is carried out by a mutual connection.  Opt for advanced search People search is a very effective method of expanding your network and is an important tool for your Linkedin sales efforts and lead generation.  You can search for new connections using various fields to optimize your search, but the main idea is to look for people with characteristics that are interesting to your business.  Additionally, consider subscribing to a premium profile to have more search fields and the ability to save even more people, which can maximize prospecting efficiency.  Use Sales Navigator In addition to these little secrets for prospecting, another tool that is dedicated to digital sales is Linkedin Sales Navigator.  The tool was created with the aim of creating, strengthening and deepening relationships with customers and also prospecting new ones.  It is ideal for companies that are looking for the ICP (Ideal Customer Profile).  It even has a certain similarity to a CRM system for lead generation.  There are 3 types of accounts to serve companies: Professional, Team and Enterprise.  You can use the Lead Builder feature to create lists of leads using certain premium advanced search filters, such as: Function; Experience; Interests; Years of experience; Company size; Find good groups to join; Being part of groups on Linkedin is also of fundamental importance to find suitable groups for each professional or company.  Read more about: Negotiation Techniques Join Groups Linkedin groups are excellent opportunities to generate relationships and create deeper connections and share ideas.  The potential is immense.  Linkedin has also made some updates to groups, such as: Limiting members; More incisive supervision; Privatizing groups; Moderating and monitoring content; Sending daily or weekly summaries to participants.  To be more assertive in group participation, with keywords, for example, filter groups that can generate more returns, which are those where you can stimulate discussions and post relevant content.  Large groups generate more contacts, but smaller groups also have more guarantee that your message will be noticed.  It is also possible to create your own group and this can place the professional as a leader in that discussion.  But remember that it's not just about posting, you need to be active to generate authority within the group.  Therefore, set aside some time in your routine to dedicate yourself to this, that is, you need to have a constant digital presence.  Furthermore, being in these groups provides knowledge of innovations and market trends, such as the growing use of artificial intelligence in the market.  Being actively aware of this information in groups can make your brand relevant to your potential customers.  It is interesting to know that it is possible to participate in up to 100 groups on Linkedin and, occasionally, switch groups that give less return to include other more promising ones.  Be good at giving answers To create a good connection with your potential customers, you need to know that people usually buy from those who they feel well treated.  So don’t miss the opportunity to listen to your future client and give quick, personalized and appropriate answers.  Be more personal when responding and this will create a connection with your potential customers.  This will foster more meaningful relationships with them and a greater likelihood of generating sales.  Let's remember that 70% of purchasing decisions are also the result of how the customer felt treated.  If he felt that he was taken care of and had a problem resolved, he will probably buy your product or service again.  According to Marketing Metrics, good service can generate 60% to 70% of a new purchase.  To do this, you also need to track and manage your leads, use software such as CRM and personalize the message you want to send to your future customers.  Keep your status updated Also remember to always keep your status updated, with e-book posts, slideshare presentations and even videos, which are initiatives of unquestionable value.  Some experts believe that updating your profile 3 times a day is the best option. One suggestion is to update it at the beginning and end of the workday.  This frequency will maximize your digital presence, establish credibility and add value when the updated topics are interesting.  To generate engagement, don't lose sight of Linkedin Pulse either. This social network publishing tool is designed for long-form content posts.  This is the best way to consolidate your status as an authority on the subject and increase your visibility.  But remember that good titles will help a lot when an automatic notification arrives to remind your network about your published article.  Metrics are also important on Linkedin And since we cannot get complacent, after all this, it is very important to use metrics to know if your strategies are actually working for sales on Linkedin.  A very useful tool is the Social Selling Index, which allows you to measure your effectiveness across multiple criteria at the touch of a button.  These criteria include establishing a professional brand, finding the right people, interacting with insights, and building relationships.  But also remember that knowing a customer's purchasing journey helps you better decipher the profile of prospects and can greatly help with sales on Linkedin.  Use Linkedin ADS Linkedin ADS is also seen as a very efficient tool for promoting business.  Since Linkedin already has an audience that has twice the purchasing power, with powerful segmentation that already brings more qualified leads, ads are also an effective way for those who need to find out how to sell more.  To do this, it is possible to combine several audience filters with Linkedin ADS and it becomes even easier to find a persona with a high chance of closing a deal.  There are a few main ways to advertise: Sponsored Content (appears in users' feeds), Sponsored InMail (private communication channel), Text Ad (texts that appear in the right column) and Dynamic ADS (large-scale ad campaign).  Finally...

It is extremely important for a company to know which metrics really matter for its product or service, so that it will be possible to measure strategies. 

Check out some of the main examples of digital marketing KPIs used in organizations below: 

Cost per lead

Cost per Lead (CPL) is one of the most important indicators within a digital marketing plan. With it, it is possible to calculate how much it costs the company to capture each new lead, a potential customer who shows interest in your business. 

In fact, this indicator should be used as a thermometer for all campaigns and strategies developed in the brand's marketing. 

Furthermore, the focus of this KPI is the top of the sales funnel. Therefore, the basic calculation should be done by dividing the total marketing investment by the total number of new leads. 

Click through rate 

The click-through rate is an indicator designed to show how many people clicked on links that your company suggested, whether in ads, blogs, sponsored links, emails or posts on social media, that is, a way of measuring the public's engagement with marketing strategies. 

The click-through rate is calculated as follows:

CTR = (Clicks / Views) x 100

Cost per click

Cost per click (CPC) is characterized by measuring the performance of a business's sponsored posts and links. In fact, its calculation is quite simple. Just divide the total invested in sponsored links by the total number of clicks received.

Conversion rate

In this case, the conversion rate is a performance indicator that measures how many visitors performed a desired action, such as downloading a rich material or subscribing to a newsletter. 

Having a high conversion rate indicates that a company's marketing strategies are being effective.

Return on investment 

Return on Investment (ROI) is used to quantify the performance of a brand's marketing strategies from a financial perspective. It can be calculated based on the relationship between the total amount invested in marketing and the return obtained from that investment. 

Remember that for no company to be at a loss, it is essential that the result is always greater than 1.

Cost of Customer Acquisition

Customer Acquisition Cost (CAC) indicates how much a company is investing to acquire each customer. This KPI also helps identify how much profit the business is actually making with each new sale or service provided.

Furthermore, the CAC calculation is done as follows:

CAC = sum of investments / number of customers acquired

That said, this KPI helps to verify whether what is being spent is actually compatible with what is being received with new sales or service provision. 

Return on Advertising Investment 

Return On Advertising Spend (ROAS) is a key metric for measuring the profit generated from advertising campaigns. 

This KPI provides important guidance on the results of these campaigns, showing where your business is losing money and where it is worth investing more. In digital marketing, we use all the investment made in paid media, such as Google ADS and Meta ADS, to calculate this KPI.

Therefore, a low ROAS requires the company to analyze the effectiveness of its ads. A high ROAS indicates good opportunities to invest and generate more business. 

The formula for calculating ROAS is very simple, as you can see below:

ROAS = Revenue attributable to ads / Cost of ads) x 100

Finally, it is worth highlighting that this KPI is a complementary metric and that others should also be analyzed together, to ensure a broader view that guarantees the best results and less expenses. 

Difference between KPIs and metrics 

Finally, to help clear up many users' doubts, it is important to contextualize that there is indeed a difference between KPIs and metrics. However, a metric can become a key performance indicator. 

  • KPIs: These are essential criteria for the company's objective and progress; 
  • Metrics: It's just something to be quantified.

Therefore, if this metric becomes an important point in the marketing strategy as a whole, it ends up becoming a KPI.

See also:

GS2 Digital Marketing

We are experts in helping our clients understand the importance of Marketing KPIs and its main metrics, in addition to helping them generate leads and nurture a good relationship with the customer until the moment of purchase.

Our success strategy is based on the design of your company's purchasing journey. We gather data and analyze our successful clients from different segments to come up with a methodology that will increase your sales. 

Want to know more about how GS2 Marketing Digital can help you structure your marketing strategies?

Talk with us! 

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