There are lots of other KPI marketing indicators besides cost and ROI (return on investment). Surely, knowing your business’ profitability and your expenses are maybe ‘the most crucial’ metrics of a business’ financial success. Yet, the figures do not just occur in a vacuum. There are a couple of truly critical marketing metrics that influence your business’ bottom line directly. This article outlines three of the most crucial KPIs and what needs to occur to ensure your business’ success.

1. CVR (conversion rate)

Let us start with the KPI that concentrates on driving new business and clients. Digitally, CVR is the number of individuals who complete any form (consider examples like a ‘request a demo’ or a ‘contact us’ form) or any CTA (call to action) divided by the whole number of visitors who visit your landing page or website. CVR is a direct correlation of your marketing efforts’ effectiveness in converting individuals of all varying interests into legit leads. The better your marketing’s messaging, targeting, as well as user experience, the higher your CVR will be, translating into more leads being generated byyour business.

2. CPL (cost per lead)

CPL is a measurement of the amount of money that it costs your business to generate every new lead. Said another way, how much does every single lead cost you in monetary terms? This is among the foremost key performance indicator marketingmetrics. It is a measure of your cost of marketing within a given timeframe divided by the total number of leads that you have been able to drive to your landing page or website during the same period. This metric is especially valuable on a channel-by-channel basis.

By computing the amount it costs to drive leads according to the channel, you can invest a little more money, time, as well as other resources into marketing channels that are effective and less into the ones with poor returns. If possible, include your costs of marketing overheads into the computation. By adding costs such as marketing management fees or salaries, you will obtain a much more exact indication of what is working and what isn’t.

3. LTV (lifetime value)

Sincerely, the calculation of the LTV of a customer isn’t always an easy job. You must know the initial average revenue a customer brings in plus the average revenue that every subsequent visit drives till the person is no more a customer. That said, insight into the long-term financial worth of a customer to your business is maybe the best indicator of the number of marketing dollars you can invest in attracting every new customer. It’s truly worth the effort for you to comb through all past and present customers’ accounting records.

In conclusion, if you can maintain a close watch on all of these crucial KPI marketing indicators, with time you will have a much better understanding of what is actually working and what is not working from the marketing perspective, thus contributing to a much greater general success for your business. If you are currently a prospective client that has any questions regarding these KPIs, just contact the foremost professionals for recommendations.